MEDICAL DIRECTOR COVERAGE: 3 MAIN TYPES OF EXPOSURE

This is the first article in a series focused on Medical Directorship exposures and how to properly insure them.

I have been receiving an increased number of calls lately for varying types of medical director coverage.  Many of these prospective insureds have exposure beyond basic administrative duties, which I believe is often overlooked and not adequately covered.

While the specifics of each risk vary, medical director exposures generally fall into these 3 main categories:

1.  Medical Director – administrative duties only

This is the most simplistic of medical director types, encompassing basic administrative duties, such as handling protocols and managerial procedures.  There is a specific type of policy to cover these exposures, as there is no direct patient contact.

While many medical facility policies cover this basic administrative exposure automatically under the definition of Insured, many medical directors still obtain individual policies. This can be in order to control their coverage terms and prior acts, contract with multiple facilities, or as requirement of their employment agreement.

An issue with this basic type of policy is that “administrative duties” is not always clearly defined, leaving ambiguity on what duties are actually covered.

2.  Medical Director – with indirect patient care

For medical directors performing tasks outside of simple protocols and procedures, but not seeing patients, indirect patient care coverage is needed as well.  The majority of this exposure comes in the form of supervising other medical staff. This coverage may also be needed depending on the level of chart review a medical director may be performing.

A policy for this type of exposure goes a step beyond just administrative duties, and needs to include supervision or “indirect” patient care.

3.  Medical Director – with direct patient care

In cases where the medical director is not only handling policies and protocol, but seeing and providing direct care for patients as well, malpractice coverage is needed in the form of a combination policy.  These policies not only address administrative errors exposure, but bodily injury as well.

The carrier options for these types of polices are more limited as they combine two separate lines of coverage into one form.

As medical director duties continue to expand, so do the coverage needs.  Make sure you are adequately securing professional liability coverage to match the duties being performed as well as any employment contract requirements.

If you have any additional questions on what is needed for a submission, or have a prospect you would like to discuss, please contact Ethos.