Specialist insurer Beazley Group has launched Beazley Remedy, the first admitted management liability coverage that includes a regulatory liability coverage option.
Beazley said the coverage is a response to the fact that healthcare providers operate in an increasingly hazardous regulatory environment, with highly complex coding requirements.
As providers across the country ready their systems and processes for the ICD-10 revision mandate scheduled for October 1 of this year, Beazley Remedy offers coverage for both unexpected government investigations and commercial payor lawsuits.
The regulatory liability coverage, provided under one of the four insuring clauses within the policy, covers defense costs, external forensic audit expenses and medical expert fees, as well as civil fines and penalties.
The other three insuring clauses within the policy cover directors' and officers' (D&O) risks (with specific adaptations for healthcare providers), employment practices liability (EPL) exposures, and fiduciary liability risks. The coverage is flexible, enabling clients to select combined or separate limits under any or all of the four insuring clauses on an admitted or a surplus lines basis.
Kelly Webster, healthcare management liability focus group leader at Beazley, said: "Beazley is a pioneer in covering regulatory liability risks, launching our first standalone policy in March 2012. We're delighted now to have been able to respond to the demand from our brokers and clients to include this protection in a significantly enhanced management liability policy.
“I am confident that Beazley Remedy will rapidly come to be seen as setting a new standard for high quality management liability protection for healthcare providers."
Beazley, US, Insurance, Beazley Remedy