Directors & Officers Liability Risk (D&O)

Any physician, surgeon, chief executive officer or other senior management executive that participates on a board of directors places their personal assets at risk.

In today’s litigious environment, an actual or alleged claim can be brought against an individual board member or entire organization for errors and omissions in conducting normal day-to-day, management and financial activities.

What are the common D&O exposures?

• Mismanagement of finances
• Fraudulent or improper financial reporting
• Employment related actions
• Conflict of interest
• Exposures to the organization or individual by outside board participation
• IT security breaches

Large for profit hospitals and healthcare systems are not the only organizations vulnerable to Directors & Officers Liability. Small to mid-size medical practices and healthcare organizations are also at risk.

Directors & Officers Liability Insurance

A general liability policy insures an organization’s risk of third-party bodily injury and property damage. It does not insure against alleged management errors and omissions. Decisions made by a board of directors can create liability and fiduciary exposures for the organization and themselves personally.

To learn more about your Directors and Officers exposures and how to mitigate risk, please contact a Professional Risk Specialist at Smith Brothers 860-430-3340.

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Employment Practice Liability (EPL)

Employment Practice Liability claims and lawsuits are damaging to company morale and a huge financial exposure to any medical practice or healthcare organization.

The healthcare landscape is rapidly changing. Mergers, acquisitions, and reduction in the workforce create significant employment issues. Most physician practices do not have an effective risk management plan or insurance coverage to deal with EPL. It is paramount your organization understands the employment law statutes of your state and implements risk strategies to minimize exposures when sued for Employment Practices Liability.

What is Employment Practices Liability?
EPL are liability claims arising from the employment process. These claims may be brought by past, present or potential employees.

Common EPL claims include:

• Wage and Hour
• Discrimination
  
• Wrongful Termination
• Retaliation
• Negligent Evaluation
• Failure to Promote
• Sexual Harassment
• Emotional Distress
  
• Invasion of Privacy

Hospitals and large healthcare systems are not the only organizations vulnerable to EPL claims. Small to mid-size medical practices and healthcare organizations are at risk since many do not have in-house legal counsel, updated employee handbooks, or established and documented procedures for employee hiring, discipline, or termination.

How to Protect Against Employment Practice Lawsuits:

Effective Risk Management

• Introduce and maintain job descriptions and employment manuals
• Involve employees in periodic performance reviews
  
• Create a system to document complaints and process to address and resolve issues
  
• Understand and abide by state and federal employment laws
  
• Identify an environment where employees can report issues without fear of retaliation
  

Employment Practices Liability Insurance (EPLI)

• EPLI Insurance insures the healthcare practice against claims by employees regarding their violation of legal rights
  
• EPLI Insurance provides insurance for liability damages and defense of EPL claims regardless of merit
  
• Limits of liability range from $100,000 to $1,000,000 +
• Provides access to valuable risk management tools designed to reduce EPL risk

Smith Brothers Healthcare Practice assists its clients in addressing the risk issues associated with Employment Practices Liability. We work with you to develop a risk management plan and add EPLI as a risk mitigation tool.

To learn more about your EPL exposures and how to reduce your practice risk, contact a Professional Risk Specialist at Smith Brothers 860-430-3340.

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Cyber Liability Risk

No medical practice or healthcare organization is immune to cyber liability. Your Electronic Health Record (EHR) and computer network is the lifeblood of your organization. A computer virus or unauthorized access to your EHR or network can cause significant damage throughout your organization including serious financial risk.

It does not matter whether you store company information in a cloud, on your network or through a third-party vendor, you are still at risk for cyber loss. It is paramount your organization understands its cyber risk exposures and implements risk strategies and mitigation techniques to minimize exposures when confronted with a cyber-breach.

What are the common healthcare exposures?

• Virus infecting your EHR, electronic network, cloud, or third-party vendor site
  
• Security breach to your data by outside source
  
• Theft or loss of protected health information, corporate information, or financial data
  
• Destruction and complete loss of information stored on network
• Improper use of social media
  
• Theft or loss of mobile devices that have access to Protected Health Information (PHI)
  

Who is at risk?
If your electronic network, cloud, or third-party vendor site is compromised by a virus or breach, your organization has a duty to protect:

• Patients
• Vendors
• Board of Directors
• Employees

What is at risk?

• Loss of a patient’s PHI
• Loss of credit card and other corporate financial data
  
• Employee information
• Reputation of the practice
• Legal costs to defend first party and third-party liability claims
• Loss of income to business
• Cyber extortion

How to Protect Against Cyber Liability Exposures:

Effective Risk Management

• Develop an emergency response team to identify and delegate responsibility when a security breach is discovered
  
• Protect PHI and other confidential information with encrypted software programs
• Review vendor relationships to confirm their privacy procedures and use of encryption
  
• Confirm all that third-party vendors or cloud relationships carry cyber liability insurance
• Institute regular IT security tests of EHR, networks and software programs
  
• Develop and implement an encryption program for use on all handheld and mobile devices that have access or that will share PHI and other company information
  
• Develop or enforce a social media monitoring program in the office and for use on all company electronic sites
  

Cyber Liability Insurance

• Breach notification and credit monitoring support
  
• IT and security forensic protection to detect how cyber loss occurred
• Provides legal representation and pays legal defense
• Access to risk management materials to manage cyber exposures

Cyber liability exposure places your organization at great risk. In today’s healthcare environment they are as prevalent as a malpractice claim or employment practices liability claim. Smith Brothers Healthcare Practice assists its clients in addressing the risk issues connected to cyber losses. We can work with you to develop a risk management plan and add cyber liability insurance to protect against loss.

To learn more about your cyber exposures and reduce your risk, please contact a Professional Risk Specialist at Smith Brothers 860-430-3340.

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A Proven Cost-Saving Strategy for Orthopedic Surgeons

Orthopedic Surgeons in Connecticut: You Can Reduce Your Insurance Premiums

Join Professional Risk Strategies Purchasing Group (PRSPG)

• As an orthopedic surgeon you have an opportunity to significantly reduce the cost of your malpractice insurance
  
• Specifically designed for orthopedic surgeons, both solo and group practices
  
• Administered by Smith Brothers Insurance, one of the largest independently operated insurance agencies in New England – Malpractice coverage provided by Coverys, the sixth largest medical liability insurance carrier in the country
  

How does PRSPG Work?

• PRSPG provides you with a range of advantages: discounted rates are only the beginning of mission
  
• PRSPG collectively negotiates insurance coverage for all its members by leveraging the group’s purchasing power – You can save 15%-30% or more on your current malpractice insurance premiums
  

PRSPG members receive the following enhanced benefits:

• Collectively bargain with your fellow orthopaedic surgeons for long-term stable professional liability premiums
• Risk Management-PRSPG has developed orthopaedic specific risk management programs and best practices that assist in reducing malpractice risk.
  
• Rewards good loss experience.
  

To learn more about your cyber exposures and reduce your risk, please contact a Professional Risk Specialist at Smith Brothers 860-430-3340.

Protect your medical practice from costly billing errors, medical regulatory violations, network security and privacy issues.

Significant Savings for New England’s Physicians and Surgeons

Smith Brothers insurance is pleased to offer a cost-efficient insurance program for solo and group practices in New England. As a specialist in risk financing for high-risk specialties, we have worked with physicians and surgeons throughout New England to provide them with affordable, comprehensive insurance coverage with top-rated insurance carriers. For this medical billing errors & omissions program we selected NAS Insurance Services, a nationwide leader in specialty insurance for the healthcare industry. There are two exciting products designed specifically for solo and group medical practices:

MEDEFENSE PlusPlus™

• • Defense against alleged billing errors
  • Defense against medical regulatory

e-MD™

• Network security and privacy coverage
• Credit monitoring after a loss
  
• Data recovery costs

MEDEFENSE Plus and e-MD are offered to physicians and surgeons that practice in New England and meet the program’s qualifications. When both products are purchased together, there is a significant discount applied to the premium amount. The premiums are affordable; as low as $1,500.

To learn more about your cyber exposures and reduce your risk, please contact a Professional Risk Specialist at Smith Brothers 860-430-3340.

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