How much does Insurance for Virtual Care, TeleHealth, & Telemedicine Companies cost?

The cost of insurance for Virtual care, TeleHealth, and Telemedicine companies will depend on several factors, including the company’s size and the stage of the company in its development process. Other factors include: Exposures: risks being insured. Company practices: views on safety, compliance, and risk management. Program structure: the amount of deductible and willingness for a company to assume more risk Claims history: the type and amount of past claims against the company

Insurance for Virtual Care & Telemedicine Companies

Overview

With a growing need for patients to access healthcare in ways other than a traditional office visit, this industry provides solutions. Even in a world filled with fuel-efficient cars and ridesharing, plenty of people go without access to high-quality medical experts. The Virtual Care, TeleHealth, and Telemedicine industry provides patients with access to healthcare at their fingertips.

Even before the COVID-19 crisis, this industry was evolving rapidly. The pandemic has only increased the need for safe and secure healthcare. Whether it’s wearable medical devices or patient monitoring apps, this industry provides healthcare professionals real-time updates on patients.

Experts predict that the telemedicine market will grow in value to more than $175 by 2026. In 2019, the US telemedicine market was valued at $45 billion already. It’s not surprising as nearly 31% of healthcare organizations use video-based telemedicine, and 34% offer remote patient monitoring. Additionally, more Americans use telehealth nowadays, with healthcare telehealth visits likely exceeding one billion this year.

Increased telehealth usage

During the first quarter of 2020, telehealth usage increased by 50%. Naturally, this surge was pandemic-induced; however, the trend isn’t slowing down.

Data Breach Costs

The average total cost of a data breach in 2020 was $3.86 million and the average cost per individual record that was lost was $150 (IBM).

Why is Insurance for Virtual Care, TeleHeath & Telemedicine Organizations Important?

Regardless of a worldwide health crisis, more and more individuals benefit from virtual care. Those in remote areas, frequent travelers, or individuals facing debilitating mental health conditions rely on telemedicine for care. Ensuring these companies’ longevity is a must, and insurance is one primary path to making that happen.

That said, not all of society is pure of heart — plenty of cybercriminals could care less about an individual’s health. Damaging data breaches could cause loads of harm to a telemedicine company, potentially shuttering it permanently. Insurance helps to protect essential business operations from harmful attacks, thus supporting vital patient care.

Lastly, innovative technology catapults the Virtual Care, TeleHealth, and Telemedicine industry. Legal holdups and property damage could put a severe strain on momentum. In addition to supporting longevity, insurance products help companies to maintain their rapid pace forward.

Technology Failure

The healthcare industry depends on technology more now than ever. If it fails, patients don’t always receive the care they need. However, technology isn’t fool-proof, and blips happen. Suppose a local pharmacy kiosk malfunctions by misreading a patient’s weight. The patient could accidentally suffer worsening symptoms or even an overdose if the healthcare practitioner used the kiosk’s information.

Product Failure

Wearable technology and patient monitoring have become increasingly popular. Like technology, though, even innovative products can falter. A service disruption at a medical tech company could cause a blood sugar monitoring app to malfunction, causing a severe medical emergency for the patient. This situation is detrimental to the patient and could also cause financial or reputational loss to the medical tech company.

Miscommunication

Virtual care, TeleHealth, and Telemedicine companies depend on several elements to keep the gears turning smoothly. One vital aspect is accurate communication. Unfortunately, poor connectivity, language barriers, or a slew of other blockages could cause miscommunication or misdiagnosis. Suppose the severity of a mental health patient’s state is misconstrued, motivating the healthcare professional not to treat the case as an emergency. The worst-case scenario is that the patient self-harms or attempts suicide after the therapy session.

Regulatory Compliance

The severity and frequency of data breaches are on an upward trajectory, especially with remote work and telemedicine options more popular nowadays. However, Virtual care, TeleHealth, and Telemedicine companies must know their responsibilities under HIPAA regarding patient privacy and data security. Conducting audits and training employees about best cybersecurity practices is quickly becoming commonplace.

Recommended policies for Virtual Care, TeleHealth, & Telemedicine companies

Core Coverage

These coverages form the foundation of any risk management program for Virtual Care, TeleHealth, and Telemedicine companies:

General Liability

General liability offers broad protection against some of the most fundamental risks companies face. Known as “slip-and-fall” or “all-risk” insurance, this policy covers personal or property damage and bodily injury occurring on the business premises.

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Workers' Compensation

When employees sustain work-related injuries, employers are typically responsible for their medical costs and lost wages. This policy covers these expenses, protecting employees while simultaneously keeping companies running smoothly.

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Cyber Liability

Cyber insurance protects companies from third-party lawsuits relating to electric activities (i.e., phishing scams). Plus, it offers many recovery benefits, supporting data restoration and reimbursement for income lost and payroll spent.

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Errors & Omissions

Professional liability, also known as errors and omission (E&O) insurance, covers companies in third-party or client lawsuits claiming substandard work or service. Work errors or oversights, missed deadlines, budget overruns, etc., often result in costly cases — but E&O insurance responds to these mishaps.

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Virtual Care, TeleHeath & Telemedicine Specific Coverage

These policies are essential for or can be tailored to the needs of companies operating in this medical space:

Product Liabilty

Companies offering tangible products or services risk third-party lawsuits claiming bodily injury or property damage. Consider McDonald’s notorious “Hot Coffee” case in the 1990s, for example. No matter if the claims are grounded or not, this policy covers defense fees and settlements.

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Medical Malpractice & Professional Indemnity

Similar to professional liability or errors and omission (E&O) insurance, this coverage provides more tailored protection against third-party lawsuits claiming substandard work or service.

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Virtual Care & Telemedicine Insurance

The demand for tech-enabled healthcare grows each day, opening the door for massive risk in this field. This coverage protects these companies against various legal liabilities.

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Types of Virtual Care, TeleHealth, & Telemedicine Companies that need insurance

Real-time or live telemedicine
Remote patient monitoring
Medical imaging

Caregiver consultations
Store-and-forward practices
Telemedicine networking

Virtual Care, TeleHealth, & Telemedicine Insurance Frequently Asked Questions

The cost of insurance for Virtual care, TeleHealth, and Telemedicine companies will depend on several factors, including the company’s size and the stage of the company in its development process. Other factors include:

Exposures: risks being insured.
Company practices: views on safety, compliance, and risk management.
Program structure: the amount of deductible and willingness for a company to assume more risk
Claims history: the type and amount of past claims against the company

How it works

Finding insurance coverage doesn’t have to be painful. We aim to make the purchasing experience as streamlined & intuitive as possible.

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Use our custom built online portal to get quotes fast. We automate clerical tasks that plague the traditional insurance brokerages, giving us more time to be responsive and alert to your company’s needs.

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Pair with a specialist

No two organizations are the same. Our team of coverage experts partners with your team to engineer your risk management strategy, together. We take the time to understand the intricacies of your company to get you the best possible coverage.

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Stay one step ahead

To do better, you need to know better. With changing political, technological, legal and economic landscapes, staying ahead of the curve is critical.

Our in-house team is tapped into the latest developments of your industry, proactively ensuring you’re covered.

Stay one step ahead

To do better, you need to know better. With changing political, technological, legal and economic landscapes, staying ahead of the curve is critical.

Our in-house team is tapped into the latest developments of your industry, proactively ensuring you’re covered.

Kyle Jeziorski Broking Manager — Kyle Jeziorski, Broking Manager

Meet your specialist

Kyle is the market facing leader at Founder Shield, a boutique insurance brokerage specialized in serving emerging industries. Kyle has been at Founder Shield for 4+ years and in the insurance industry for 9+ years. Prior to Founder Shield, Kyle worked at Marsh on the FINPRO team focusing on management liability in the large private and public space. A graduate of Saint Joseph’s University’s Risk Management and Insurance Program, Kyle has focused his entire career helping clients to navigate through an ever changing risk environment.

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