Errors & Omissions Insurance

The primary purpose for requiring your subcontractors to carry insurance is so that you know that there are funds to defend you and pay for any damage that your contractor has caused your firm or institution. However, it’s not enough to simply ask for a specific limit and type of insurance. This is especially true when it comes to E&O insurance. Unlike other lines of insurance that are based on industry standard coverage terms, E&O insurance coverage varies widely from insurer to insurer. If you haven’t read your contractors insurance policy, it’s impossible to tell if it will provide them or you any protection if your PHI is released. For example, many E&O policies exclude the following:

  • Claims arising from infringement of a right of privacy – including a patient’s right to privacy
  • Claims arising from unauthorized access to a computer or computer network
  • Claims arising from the wrongful act of a single “rogue” employee
  • Claims arising from HIPPA fines and penalties
  • Claims arising from a contractual indemnification obligation

If your subcontractor doesn’t carry the right kind of coverage, than it’s important that you fully understand their financial position and ability to back the indemnifications they have agreed to provide you. Alternatively, make sure that your subcontractor has an insurance program that is backed by a reputable insurer AND designed specifically for companies that are providing outsourced management services.

The Errors & Omissions insurance carried by Supna Healthcare Solutions is the only coverage endorsed by AHIOS