Healthcare Consultants and Hidden Bodily Injury Exposure

Healthcare consultant risks are a class of business that come across my desk frequently. The professionals who occupy this category can range from forensic psychiatrists working as expert witnesses to retired surgeons performing utilization review.  It is a sizable segment of the market that covers a wide variety of roles.  Rarely do I see two healthcare consultants with precisely the same profile.  However, one thing that is common to everyone who fits this description is the need for error and omissions (E&O) coverage.

So whenever my retail customers come to me asking about this type of coverage for their healthcare consultant clients, I always ask myself the same question as a way of identifying the best solution:

Is there incidental medical malpractice exposure here?

For the majority of the healthcare consultant risks I have an opportunity to work on, the primary exposure is to financial loss arising from the consultant’s professional activities.  These types of claims are typically brought by the employer or a contractee to whom the healthcare consultant has provided professional services.  But it’s very important to consider the possibility of incidental exposure to medical malpractice claims driven by bodily injury.

When a healthcare consultant faces a med-mal claim, it is usually due to one of two scenarios:

1. Prospective vs. Retrospective File Review

Prospective file review work involves ongoing treatment regimens. A healthcare consultant’s subsequent recommendations could alter that treatment.  If the altered treatment leads to an actual or alleged injury to one or more patients, the result could be a med-mal claim – a claim that may well involve the healthcare consultant.  I see this most frequently with consultants performing chart or utilization review.

2. Supervision of Providers

Supervision of other (typically mid-level) providers can put a healthcare consultant at risk of being pulled into a bodily injury-driven med-mal claim.

So what’s the risk?

We know that an exclusion for claims arising out of bodily injury is very standard for basic E&O policies, i.e. bodily injury-driven medical malpractice claims are not covered.  We also know that healthcare consultants’ risk profiles vary greatly, as do the potential situations that could result in claims of medical malpractice.

If you have healthcare consultants on your client roster, it’s a good idea to talk to them about professional liability – especially related to the types of risks that may be omitted from one-size-fits-all policies.  When it’s time to get them covered, remember to turn to a wholesaler with healthcare expertise.

Give Ethos a call.

Ethos Insights

1. Given the size and diversity of the healthcare consultant category, there is no one coverage solution that suits every insured. 
2. It’s critical to ensure that healthcare consultants’ potential risks related to bodily injury claims are covered as part of their overall professional liability coverage.
3. Ethos Insurance Partners understands the nuances of the market and can help you protect your healthcare consultant clients against hidden risks.