New professional liability product from Arch


Arch Insurance Group, part of Arch Capital Group, has launched a new, specialized healthcare professional liability product in the US. The product includes Net Protection Plus cyber liability coverage and Regulatory Defense Plus for government billing audit expenses and fines, with a sublimit of $50,000.

"As more patient data is stored and shared online, in email, and on mobile devices, there is greater risk of accidental and malicious exposure of their personal information,” said Kevin O'Brien, senior vice president, who leads Arch's Healthcare Liability Facilities unit.

“In addition, the government is increasing their enforcement of HIPAA and HITECH regulations, exposing healthcare organizations to significant fines and penalties should there be a breach of protected health information (PHI). We developed this enhancement for our facilities policies in response to customer needs. We are offering eight important specialty coverages at no additional charge."

Key features of the product include multimedia liability coverage for third party claims alleging copyright/trademark infringement, libel/slander, advertising, plagiarism and personal injury; security and privacy liability coverage for third party claims alleging a financial loss as a result of a network security or privacy breach; and privacy regulatory defense and penalties coverage for defense costs and fines/penalties for violations of privacy regulations, including but not limited to, HIPAA and HITECH.

Other features include privacy breach response costs, patient notification expenses and patient support and credit monitoring expenses; network asset protection coverage for reasonable expenses and costs required to recover and/or replace data that is compromised, damaged, lost, erased or corrupted; and cyber extortion coverage for extortion expenses and extortion monies as a direct result of a credible cyber extortion threat.

The product also includes cyber terrorism coverage for income loss and interruption expenses as a result of the total or partial interruption of the insured's computer system due to a cyber-terrorism attack; and coverage for defense costs, shadow audit expenses, and regulatory fines and penalties resulting from civil investigations or proceedings brought by a government entity or commercial payer alleging erroneous billings, civil investigations or proceedings brought by a qui tam plaintiff under the False Claims Act or as a result of the Insured's voluntary self-disclosure to a government entity.


Arch Insurance Group, Arch Capital Group, Net Protection Plus, Regulatory Defense Plus