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Virtual Care, Telehealth, & Telemedicine Insurance
Virtual care, telehealth, and telemedicine insurance is a specialized form of professional liability coverage that protects healthcare providers and technology companies offering remote medical services. It is a vital form of coverage for any business that relies on virtual patient interactions. This insurance is crucial for businesses as it protects them from a wide range of claims, from data privacy breaches and technological failures to allegations of medical malpractice and licensing issues, which can lead to costly lawsuits and significant financial losses.
What Is Virtual Care, Telehealth, and Telemedicine Insurance?
Virtual care, telehealth, and telemedicine insurance is a type of commercial insurance that protects a company’s assets and operations from the unique risks of providing healthcare remotely. While these terms are often used interchangeably, they represent a full spectrum of digital health. Telemedicine focuses specifically on remote clinical services, while telehealth is a broader term that includes non-clinical services like remote patient monitoring. Virtual care encompasses the entire digital patient experience, from scheduling to follow-ups.
This type of insurance is essential for any business that provides medical advice, treatment, or technology through digital platforms. Even if you only offer one part of this ecosystem, you could be held liable for losses or damages that occur during a virtual consultation or remote interaction.
This policy covers a wide range of claims, from allegations of misdiagnosis to technological failures that interrupt patient care. Unlike other types of insurance, this coverage is distinct from a general liability or a standard medical malpractice policy. While a traditional medical malpractice policy may offer some protection for a provider, it often has exclusions that make a dedicated virtual care, telehealth, and telemedicine policy a necessary addition to a company’s risk management program.
For example, if a patient sues a telehealth company, alleging that a video consultation was interrupted by a technical glitch, leading to a misdiagnosis, a standard malpractice policy might not cover the claim. However, a comprehensive virtual care policy would also cover the technical failure and any resulting liability claims.
Virtual Care, Telehealth, and Telemedicine Coverage
Virtual care, telehealth, and telemedicine insurance is a vital component of a company’s risk management strategy, especially for businesses that operate in the digital health sector. The coverage limits should align with the company’s size, the scope of its services, and the number of patients it serves.
Who Needs This Insurance?
The parties that can benefit from this coverage are diverse:
Telehealth companies
Businesses that provide virtual medical consultations and remote patient monitoring.
Hospitals and clinics
Medical facilities that offer remote services as an extension of their in-person care.
Digital health startups
Companies developing and providing health-related software, apps, and platforms.
Individual practitioners
Doctors, therapists, and specialists who see patients virtually.
What Does Virtual Care, Telehealth, and Telemedicine Insurance Cover?
While you’ll need to consult the specific policy documents to confirm your coverage, here are a few scenarios that are typically covered:
Medical malpractice
If a patient alleges misdiagnosis or negligence during a virtual consultation.
Data privacy breaches
If sensitive patient data is exposed due to a cybersecurity incident.
Technological failures
If a platform glitch or system error leads to a negative health outcome for a patient.
Licensing and regulatory issues
If a company faces a claim for practicing medicine without a proper license in a specific state.
Failure to obtain informed consent
If a patient claims they were not properly informed of the risks of virtual care.
Virtual Care, Telehealth, and Telemedicine Insurance Policy
A comprehensive virtual care, telehealth, and telemedicine policy covers:
How Can I Manage My Policy and Risks?
Managing virtual care and telehealth risks is crucial for any business that relies on digital health. A good strategy is to have a clear understanding of your liabilities, a comprehensive review of your technology platforms, and regular communication with your patients and providers.
This strategy includes a thorough audit of your operations to ensure they are compliant with all relevant regulations, such as HIPAA. The more accurately you can assess these factors, the more easily you can determine the correct coverage amount, which is crucial for protecting your business. A strong risk management strategy, including a robust virtual care, telehealth, and telemedicine policy, can provide a vital layer of protection against financial ruin.
What Does a Virtual Care, Telehealth, and Telemedicine Policy Not Cover?
Like all insurance policies, a virtual care, telehealth, and telemedicine policy has exclusions. For example, it doesn’t cover the following claims:
Remember, this policy focuses on protecting your business from professional liability when providing remote medical services.
Virtual Care, Telehealth, and Telemedicine Insurance Cost
The cost of a virtual care, telehealth, and telemedicine policy depends on several factors, including the size of the company, the type of services being offered, the number of patients served, and the scope of the operations. Premiums are a small fraction of a company’s overall insurance spend and are very affordable when compared to the potential cost of a lawsuit or a major data breach.
Virtual Care, Telehealth, and Telemedicine Insurance Cost Factors
Premiums are a function of the risk the insurance company is taking on, as well as the amount of coverage you require. Companies with strong data security protocols and a history of clean audits will have lower rates than those with a history of claims or regulatory scrutiny. How carriers determine premiums depends entirely on the specifics of the business, for example:
- Type of services: The type of services offered (e.g., primary care, mental health, specialty consultations).
- Patient volume: The number of patients served per month or year.
- Operational scope: The geographical area of operation (e.g., state-specific, national, international).
- Prior claims history: A history of claims can lead to higher premiums.
Additionally, many major insurers will customize a virtual care, telehealth, and telemedicine policy, which impacts the premium. Some of the most prominent enhancements include:
- Higher liability limits to cover a greater risk of potential lawsuits.
- Broader definitions of covered events to include more scenarios.
Virtual Care, Telehealth, and Telemedicine Insurance Claim Examples
A patient sues a telehealth company, alleging that a virtual consultation resulted in a misdiagnosis that led to a worsening of their condition. The policy would cover the company’s legal defense and settlement costs.
A cybersecurity breach exposes the protected health information (PHI) of thousands of patients. The policy would cover the costs of legal defense, regulatory fines, and credit monitoring for affected patients.
A patient claims that a virtual care app malfunctioned, preventing them from receiving a timely consultation for a critical health issue. The policy would cover the costs of legal defense and any resulting settlements.
A patient sues a telehealth company, alleging that a virtual consultation resulted in a misdiagnosis that led to a worsening of their condition. The policy would cover the company’s legal defense and settlement costs.
A cybersecurity breach exposes the protected health information (PHI) of thousands of patients. The policy would cover the costs of legal defense, regulatory fines, and credit monitoring for affected patients.
A patient claims that a virtual care app malfunctioned, preventing them from receiving a timely consultation for a critical health issue. The policy would cover the costs of legal defense and any resulting settlements.
Insurance Brokers For Virtual Care, Telehealth, and Telemedicine Insurance
Founder Shield is a data-driven insurance brokerage serving high-growth, innovative industries. We have a passion for creating and developing innovative risk management products across emerging industries and work hand in hand with clients and underwriters to ensure transparency, efficiency, and reliability every step of the way. Our team has specialized expertise and experience in providing virtual care, telehealth, and telemedicine services.
We partner with the leading professional liability insurance carriers to craft tailored risk management programs for public companies and venture-backed companies preparing for funding rounds. With this insurance being a major budget item, we understand that companies look for new and creative solutions to help manage increasing costs while also securing best-in-class coverage.
Virtual Care, Telehealth, and Telemedicine Insurance FAQs
What Am I Actually Getting For the Price of Business Insurance?
All quotes presented will provide coverage for a policy period of one year (unless specified otherwise). The quoted price represents the total cost for the...
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What If Our Company Grows A Lot or Things Change During the Year?
We've purposely built strategic relationships with insurance carriers that offer the most scalable coverage solutions on the market. This careful carrier selection is particularly crucial...
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How Do I Bind Coverage?
Getting started with your coverage is simple and streamlined! All you need to do is review and approve your customized proposal, select your preferred payment...
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How Do You Decide Which Carriers to Approach?
We approach carriers based on several carefully considered criteria, with carrier appetite being our primary consideration. Our experienced policy placement team maintains deep knowledge of...
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How Do I Get a Certificates of Insurance?
A certificate of insurance ("COI") is a standardized, one-page document that serves as formal proof of your insurance coverage. (Note: Getting a COI is as...
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How Do We Purchase “A La Carte” Commercial Insurance?
Our insurance packages are thoughtfully designed to complement the risk profiles of startups at various stages of their funding and life cycle, but we understand...
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