Insurance for Health Technology Companies

What it covers:

Also referred to as “Errors & Omissions” or “malpractice” insurance. It covers HealthTech companies if an act, error, or omission committed in the course of the company’s performance of professional services is alleged to have caused a financial loss for a third party.

Why you need it:

Complex litigation is expensive, and there’s a lot that can go wrong for HealthTech companies in particular. The policy responds to the threat of professional service disputes by paying legal fees and judgments or settlements that result from a lawsuit for an alleged failure in the provision of professional services. 

What it covers:

This covers the organization from some of the fundamental risks that come with running an organization, such as “slip-and-fall” claims, damage to a third party’s property, products liability claims, damage to rented space, and personal or advertising injury claims. 

Why you need it:

It forms the foundation of a risk management program. On top of protecting the company from legal liability caused by bodily injury or property damage, this coverage is usually required in contracts like office leases and vendor agreements. 

What it covers:

This coverage protects your organization from lawsuits, fines, and penalties arising from a hacking attack or data breach. It can also reimburse the company for its direct expenses, such as breach notification costs, credit monitoring, data restoration, and forensic analysis. 

Why you need it:

If you collect any personal or organizational information, have a “login” feature on your site, integrate with another organization’s systems in any way, have employees who could fall for phishing scams, generate online content (i.e., blog posts), or rely heavily on email communications, you need cyber liability insurance. HealthTech companies have sensitive information on patients, which is a highly visible target for hackers, and it should be protected.

What it covers:

This coverage protects the company and key individuals from liability related to the management of the organization. Companies that indemnify their executives against specific covered claims can turn to their D&O policy for reimbursement. Also, if the organization itself is named in a suit, the policy would defend the entity.  

Why you need it:

Ensures the company and its leadership is protected from legal liability related to allegations of breach of fiduciary duty and other management-related claims. It provides the capital required to absorb specific legal costs without mortgaging the future of the entire organization. 

What it covers:

This coverage protects the organization and its management by paying the costs of defending against particular suits from employees or investigations from government agencies. Some common claims include allegations of harassment, discrimination, retaliation, and wrongful termination.  

Why you need it:

If you or the organization itself is named in such a claim, the coverage would defend you and pay the judgment or settlement against you. Keep in mind how easy it is for an employee to start an action that requires a legal defense.