The Importance of Higher Limits on Cyber Insurance

The Importance of Higher Limits on Cyber Insurance

We recently read an article from Medical Economics, emphasizing the prime reason small practices need higher limits on Cyber Insurance. Please feel free to review the information we found beneficial, and share it with your small business clients. 

Sohan Dua, M.D., received the bad news in a phone call one morning in February 2017: his practice had been hacked.

The Electronic Health Record  (EHR) system shared by Dua and his wife, Kiran Dua, M.D., had been breached and hackers were holding their patient data for ransom. That attack sent the couple, who practice in Northridge, CA, on a protracted and painful experience that cost their separate practices time, money and service interruption.

Dua, a Nephrologist, never thought he and his wife, a Primary Care physician, would join the ranks of healthcare providers and organizations that have suffered crippling cyber attacks. Luckily, their losses were at least partially covered by the combined $100,000 cyber coverage they had through their medical malpractice insurance carrier. The insurance carrier also provided the Duas with a team of experts to help in the recovery from the attack.

However, even with that assistance, the Duas’ practices were forced to shut down for several months while they dealt with the attack. “We still don’t know how much money we lost,” Dua said. “We lost patients, too.”

The growing threat of being hacked has more Primary Care physicians buying Cyber Insurance. But what those policies cover, how they work, and how much they cost are mysteries to many healthcare providers, most of whom are only familiar with malpractice and business insurance.

What Cyber Insurance Does

Cyber Insurance covers losses and damages resulting from patient data being stolen, exposed, held for ransom, or improperly shared. It covers deliberate actions, such as hacking or ransomware, as well as accidents, such as a lost laptop containing unencrypted patient information or a coding error that accidentally exposes patient data.

A comprehensive policy will cover paper records as well, since large amounts of information are still stored in physical files. Cyber Insurance helps providers deal with the consequences of data breaches, which can range from relatively minor to catastrophic. The assistance provided can include:

  • Paying regulatory fines and penalties
  • Compensating for loss of income from downtime or lost patients
  • Hiring IT experts to find and fix the breach
  • Hiring a call center to handle inquiries from patients
  • Hiring a public relations firm to deal with unwelcome publicity
  • Hiring attorneys to represent the practice in any lawsuits filed by patients (as well as any damages awarded)
  • Paying ransom to free hijacked data.


In short, it covers almost any loss or expense that can be attributed to the data breach.

For example, the Duas’ coverage helped them when they were forced to write off tens of thousands of dollars in uncollected billing due to unrecovered patient payment records, a loss that Dua estimates at $40,000 to $50,000.

A complete policy includes first-party and third-party coverage. First-party coverage pays for damages suffered by the policy holder, such as lost revenue, business interruption, IT forensics and data restoration. Third-party coverage compensates for damages caused to others by the data breach, such as the legal costs incurred from lawsuits filed by affected patients.

Practices that haven’t bought Cyber Insurance often have some coverage through their malpractice or general business policies, but it’s usually limited to about $100,000 or less in damages and contains exemptions.

How Much Does It Cost?

The cost of a Cyber Insurance policy varies, depending on the carrier, the size of the practice, and the extent and amount of the coverage, experts say. The larger the practice, the greater the risk and the more it can expect to pay.

The good news is that Cyber Insurance is less expensive than malpractice and liability insurance. A typical five-physician Primary Care practice should have at least a $1 million umbrella cyber policy.That coverage could cost anywhere from $1,200 to $5,000 a year.

A Team Response

When shopping for Cyber Insurance, practices should investigate exactly what help they will receive in case of a breach. Unlike a fire, managing a data breach often requires the help of a team of experts, not just a check to cover damages. Depending on the nature and size of the breach, that team can include lawyers, forensic accountants, IT experts, publicists and call center operators, among others.

Besides the coverage itself, the real benefit of Cyber Insurance is being able to turn over management of the crisis to a carrier with experience in data breaches. Once an insurer is notified by a policyholder of a breach, the situation is assessed and a decision is made on the corrective actions that need to be taken to prevent further damage and deal with the aftermath. The insurer hires vendors and contractors to provide the necessary services.

For example, a lawyer will handle HIPAA notification, while IT specialists locate and fix the breach and a PR firm writes the notification to patients whose data has been affected. The decision whether to pay ransomware is up to the practice, but the insurer typically recommends a course of action and handles any payment, if one is made.

In the Dua’s case, their insurance provider, The Doctors Company, employed a computer forensics company to determine the extent of the breach and a law firm that specializes in privacy issues to determine if HIPAA notification was required. “They were a lot of help,” Dua said. “We did not know how to handle everything that needed to be done.”

Electronic Health Records  And Partners

Patient data is exchanged between practices, insurers, hospitals, and labs every day. The more places data is stored, the more vulnerable it is to attack and accidental disclosure. Even a practice that is not targeted directly can be liable for data lost by a partner or vendor. For example, in April, the state of New Jersey levied a fine of nearly $418,000 against Virtua Medical Group, a physician network, after a vendor error left the records of more than 1,650 patients visible online.

Many data breaches are going to involve EHR systems, and while the electronic records providers usually work with IT experts to find and fix the breach, it does not mean the vendors are legally or financially responsible, experts say. Many practices expect their EHR system to handle breaches or pay for damages and that’s not always the case.

Small Does Not Equal Safe

Healthcare data breaches are rampant. In a 2017 survey by the AMA and Accenture, 83 percent of physicians reported experiencing some sort of cyber attack, though not all resulted in breaches. Cyber criminals target healthcare organizations because their data contains patient names, birth dates, addresses, social security numbers, credit card numbers, and health insurance information.

Whether the hackers use the information themselves or sell it to others on the black market, stolen identification and fraudulent activity is committed. That is why healthcare data is more valuable than even credit card records.

Physicians in small Primary Care practices who think they would not be a worthwhile target for hackers should look at the U.S. Department of Health and Human Services (HHS) list of reported breaches of healthcare information.

Among the giant health insurers, government agencies, and large hospital systems, are medical practices that found out the hard way that they, too, can be targeted: a multiple physician Cardiology practice in Knoxville, TN.; a solo Primary Care physician in Weston, FL.; a solo Internist in Scottsdale, AZ.; and many more.

In fact, a practice might be targeted specifically because it is small. Attacks on small practices were uncommon five years ago, but that is no longer the case. Some hackers will test and refine their methods on small practices before going on to attack larger targets, such as healthcare systems. A new kind of attack is occurring, an attack which isn’t after a practice’s data or patient information, but rather the  computing power to earn digital currency. Attackers have hijacked practice servers  for pseudocurrencies, like Bitcoin. Users might be unaware that the reason their computers are operating so slowly is that they’re running the complex calculations to reap the currency. This goes to show that the motivation to attack small businesses will always be there. For those that say they haven’t been targeted, they simply haven’t been targeted yet.

If you need further information about Cyber Insurance, click here.

The Healthcare Professional’s Guide To Medical Professional Liability Terminology: GLOSSARY OF TERMS

medical malpractice

Healthcare Professional Insurance Company, (HPSI) has put together a healthcare professional’s guide to medical professional liability terminology. If you are a Healthcare Professional this is a glossary of terms that will help you navigate all the terms used in your professional liability policies. By no means is this a complete list of all terms used for healthcare professionals, but it will help you have a better understanding of the terms and language used in most healthcare professionals liability insurance.

Medical Liability


The act of intentionally and permanently giving up, surrendering, deserting, or relinquishing the pursuit of a legal action.


A specialist in the mathematics of risk, especially as it relates to insurance calculations such as premiums, reserves, and dividends.

Adjusting and Other Expenses

(See also Unallocated Loss Adjustment Expenses)

Expenses incurred by the insurance company to resolve claims which are not attributable to specific claims, such as rent, salaries, and utility costs.

Aggregate Limits

The amount of coverage purchased to cover indemnity amounts for the combined number of reported events/claims for each policy period (i.e., $1 million for each incident, $3 million on an aggregate basis).

Allocated Loss Adjustment Expenses (ALAE)

(See also Defense and Cost Containment Claim Expenses)

Allocated loss adjustment expenses include expenses incurred by the insurance company in the investigation, adjustment, or defense of specific claims. Regulators now refer to this as defense and cost containment expenses.

Alternative Dispute Resolution (ADR)

A method of claim resolution outside the normal court system, such as mediation or arbitration. The objective of ADR is to promote more expeditious resolution of claims. Claims resolved in this manner can be less costly on the system by avoiding high administrative fees. Most ADR programs are voluntary and are provided through mediation, arbitration, or settlement conferences.

Bad Faith

A legal term of art that describes a civil claim an insured may have against an insurance company. It is often related to a breach of the obligation inherent in all contracts dealing with other parties in good faith and with fair dealing—such as in paying claims or issuing a cancellation under an insurance policy.

Basic/Primary Coverage

Primary insurance provides coverage for which liability attaches immediately upon the filing of a claim. It is “first dollar” coverage, often sold at $1 million/$3 million policy limits.

Binding Arbitration

A type of alternative dispute resolution in which the decision or outcome is made by a neutral third party (or panel) through arbitration proceedings. The acceptance of the outcome is obligatory for both the defendant and the plaintiff.

Catastrophe Coverage/Patient

Compensation Several states have laws establishing a patient compensation or medical professional liability catastrophe coverage fund. This provides an additional layer of coverage to the insured over the basic policy limits of the insurer, similar to excess coverage.


An act, omission, or breach in the standard of care that directly produces an event/incident and without which the event/incident would not have occurred.

Certificate of Merit

A document signed by a practitioner stating he/she has reviewed the available facts of an event/incident and agrees the standard of care has been violated. Some states require a certificate of merit be filed with any MPL lawsuit.


Generally defined as any written or oral demand made by or on behalf of a patient/claimant for compensation in the form of money and/or services. Policy provisions require insureds to notify the insurance company immediately upon notice of a claim. A lawsuit is a claim (see lawsuit).


A patient, or patient’s representative, who makes a claim for alleged malpractice. Claim Reserve Estimated costs to fund claims the insurance company is aware of but have not yet been resolved. This does not take into account incurred but not reported claims.

Claims-Made Policy

A policy coverage type that covers an insured against any claim made (reported) at or after the policy retroactive (retro) date and before the policy expiration date.

Collateral Source Rule

A rule stating evidence that an alleged victim has been compensated by a third party for a portion of their losses may not be introduced in court. The defendant must pay the full monetary value of the injury they are alleged to have caused. The rule potentially allows a plaintiff to “double dip”—collect overlapping damages from different sources for the same injury.

Combined Ratio

A measure of profitability used by an insurance company to indicate how well it is performing in its daily operations. A ratio below 100 percent indicates the company is making an underwriting profit. A ratio above 100 percent means it is paying out more money in claims than it receives from premiums.

Consent to Settle

A company may not settle a claim on an insured’s behalf without first obtaining the insured’s written consent.

Coverage Exclusions

A condition, loss, or act expressly not covered by the policy, which may appear on the declarations page or in the policy jacket. For example, coverage for the performance of certain high-risk procedures may be excluded.

Covered Defense Costs

Any expenses paid in the process of adjudicating a claim. Costs generally include defense attorney costs, expert witness fees, and other costs associated with court costs, securing medical records, etc.


Losses claimed by the claimant/plaintiff as a result of (alleged) negligence. Damage Cap Statutory law, restricting the monetary recovery of the plaintiff for a specified injury, such as pain and suffering— or by restricting the total amount of recoverable damages.

Declaration Page (Coverage Summary)

This is the portion of an insurance policy that contains coverage data specific to the individual insured, such as name, address, policy limits, and premiums charged.

Deductible Policy

A policy that requires the insured to assume partial payment of indemnity and/or defense costs, usually from the first dollar to a predetermined limit.

Defense and Cost Containment Claim Expenses (See also Allocated Loss Adjustment Expenses)

Defense and cost containment expenses include those expenses incurred by the insurance company in the investigation, adjustment, or defense of specific claims.

Defensive Medicine

The practice of diagnostic or therapeutic measures conducted primarily as a safeguard against possible medical professional liability exposure


A fact-finding process—conducted through oral interrogations of parties and witnesses—in which both the defense and the plaintiff learn of evidence and witnesses.

Direct Written Premium

The total premiums received by the insurance company without any adjustments for the ceding of any portion of these premiums to reinsurers.

Discovery Proceedings

After the reporting of a lawsuit, this process focuses on obtaining facts and/or securing relevant evidence regarding the allegation to establish whether a duty existed and whether an alleged breach was a proximate cause of the patient’s injury/damages.


Dividends are paid to policyholders as a return of a portion of premiums paid by policyholders—when it can be determined the insurance company does not need the funds to pay claims or operating expenses.

Economic Damages

Direct losses, such as medical expenses, lost wages and other expenses, incurred as a direct consequence of the injury resulting from the acts of the defendant.

Event/Incident Reporting

Any event that caused a possible error or omission the policyholder feels has the potential for litigation. The policyholder should report such events/incidents and the surrounding circumstances of the insurance company as soon as possible.

Excess Coverage

Excess insurance provides coverage with liability attaching only after a predetermined amount of primary coverage has been exhausted. Excess coverage is only available if the insured maintains the underlying primary insurance coverage.

Exclusions (Policy Coverage)

Certain actions (such as specific procedures or practice at specific locations) for which an insurance company will not defend or indemnify a practitioner.

Expert Witness

A medical expert hired by either the defense or the plaintiff to testify as to the appropriate standard of care.

Facultative Reinsurance

A type of reinsurance in which the insurance company cedes risks under individual policies to the reinsurer— rather than all risks used to reduce exposure to loss on an individual risk basis. Frivolous Lawsuit An insufficient claim, not supported by the facts; a lawsuit lacking a legal basis or legal merit.

Gross Written Premium

The collective value of all policy premiums written or sold during an accounting period, such as a calendar or fiscal year.

Group Coverage

This coverage is extended to multiple physicians with one policy, covering incidents reported on behalf of any physician named on the declaration page of the policy.

Hammer Clause

A clause that allows the insurance company to decide the point at which a case should be settled. If an insured does not agree with the insurer’s decision to settle, the insurer will proceed with the case—but will limit its coverage to the amount of their originally proposed settlement. If the award is more than that amount, the insured is responsible for the amount above the original settlement offer.

Incident/Accident Date

This is the date on which the alleged injury took place. It is also referred to as the occurrence date. Claims-made coverage claims must be reported during the time period in which the policy is in force. Under an occurrence policy, this date is used to determine coverage.

Incurred But Not Reported (IBNR)

This term refers to an estimate of the number and/or value of claims that have occurred but not yet been reported to the insurance company. This projection is developed by the company’s actuaries and is based on historic information of loss experience. IBNR values are estimated for indemnity amounts and allocated loss adjustment expenses.

Incurred Expenses

Expenses that have and may not yet have been paid by the insurance company in the defense of claims and suits. Includes the amounts already paid and those expected to be paid. Incurred Losses Losses that have occurred within a stipulated time period, whether paid or not.


A contractual obligation by which one person or organization agrees to secure another against loss or damage from specified liabilities.

Indemnity Payment

Money paid to a claimant/plaintiff for alleged and/or adjudicated damages incurred in a resolution of a claim. The indemnity payment includes an amount equal to the economic recovery for expenses already incurred or expected to be incurred, and may also include non-economic damages. Non-economic damages are paid to compensate an individual for physical and emotional pain, suffering, mental anguish, and other abstract non-monetary losses. Individual Coverage This is coverage rendered to one practitioner with one policy and covers the incidents only for that practitioner.

Informed Consent

A patient’s choice about a medical treatment or procedure, made after a doctor or other healthcare provider discloses whatever information a reasonably prudent provider in the medical community would give to a patient regarding the risks involved in the proposed treatment or procedure.

Involuntary Dismissal

The termination of a court case despite the plaintiff’s objection. Involuntary dismissal is made by a defendant through a motion for dismissal—which is granted by the court on grounds that the plaintiff is not prosecuting the case—is not complying with a court order, or is not complying with the

Rules of Civil Procedure.

A lawsuit (Complaint) An action or proceeding brought before a court to recover money and/or services for the plaintiff. The action generally alleges a negligent act or omission on the part of one or more defendants.

Legal Expense Reimbursement

An insurance product which may be offered by insurance companies to cover defense expense costs associated with investigations or government proceedings related to fraud and abuse.

Limits of Liability

The maximum amount of insurance under a policy that can be paid to the policyholder or another party for a covered loss.

Locum Tenens Coverage

Coverage extended to an additional insured on a policy in cases in which that practitioner is providing temporary medical coverage for the policyholder.

Loss Ratio

The ratio of incurred losses and loss adjustment expenses to earned premiums.

Mature Rate (Mature Premium)

The fee a policyholder will pay during the year the policy matures, generally the fifth year. The first level premium is substantially lower than a mature premium and is designed for policyholders new to the practice and therefore have no claims history.


A type of alternative dispute resolution in which the parties and their attorneys, as well as an independent mediation specialist, are brought together to discuss the merit of the case and appropriate compensation if any.

Medical Misadventure

An alleged departure from the standard of medical care including errors in diagnosis, treatment, a performance of procedures, supervision, or timeliness that resulted in injury to a patient.

Merit Rate

A rating by an insurance company based on an individual doctor’s risk. A merit rating system can provide for a reduction in premium to insureds who do not have a claim filed—or payment made against them for a predetermined amount of time.


A lawsuit meriting a legal victory; having legal worth.

MICRA Medical Injury Compensation Reform Act of 1975 (California). Among other things, MICRA places a $250,000 cap on non-economic damages (pain and suffering); limits attorney contingency fees; allows periodic payments of future damages in excess of $50,000; and establishes a statute of limitations of three years from an injury or of one year from the discovery of an injury and its negligent cause.

Net Written Premium

The gross premium is written by the insurance company minus the reinsurance ceded to other companies.

Non-binding Arbitration

A type of alternative dispute resolution in which the decision or outcome is made by an arbitrator. The acceptance of the outcome is not mandatory for either the defendant or the plaintiff.

Non-economic Damages

A value determined to compensate the injured party for diminished personal enjoyment, pain, and suffering, loss of consortium, etc.

Nose Coverage—(See Prior Acts Coverage) Occurrence Policy

A policy coverage type that covers an insured against any claim arising from an event occurring during the policy period, regardless of when the claim is reported.

Partnership/Corporation Coverage

This policy type covers the liability of a partnership or corporation of which the insured is an owner or shareholder. Partnerships and corporations can be sued for the alleged failure to establish proper clinical practices or procedures. They are often named as additional defendants in claims against partners or shareholders in order to increase the amount of recovery potentially available to the plaintiff.

Patient Compensation Fund—See Catastrophe Coverage Per Incident Limits The amount of coverage purchased to cover indemnity amounts for each claim reported for a single injury during a policy period (i.e., $1mil/$3mil). Plaintiff A patient/claimant who undertakes formal litigation against a practitioner for alleged negligence in his/her medical care or treatment. Policy (Policy Form or Jacket) This is the portion of an insurance policy that contains policy provisions common to all insureds, such as covered acts, methods of indemnification, and claims reporting requirements.

Policy Endorsement Additions or modifications to the policy.

Endorsements can be added to restrict or expand coverages for the person(s) insured by the policy. An endorsement can add additional insureds or corporations for an additional premium. It can also be used to reflect modification of specialty, territory, or scope of practice of an insured.


The amount an insured is charged which reflects his/her expected loss or risk. In MPL coverage, the premium can be based on specialty, geographic region of practice, prior claims history, a performance of high-risk procedures, and other underwriting parameters.

Premium to Surplus Ratio

The ratio of premiums written to policyholders’ surplus. This ratio is one measure of the adequacy of the company’s financial strength. The lower the ratio, the greater the company’s financial strength.

Prior Acts Coverage (Retroactive Coverage or Nose Coverage)

Under a claims-made policy, this coverage provides insurance for claims arising from incidents that occurred while a previous claims-made policy or policies were in effect—but were not reported until that policy (or the last in a succession of policies) was terminated. Under prior acts coverage, the new policy covers such claims back to the retroactive date. With such coverage, purchase of tail coverage from the previous carrier is not necessary.

Professional Liability Insurance

A policy of insurance that covers “professional services” rendered from which an act or omission must arise for coverage to be applicable. Policies typically include all services rendered in the insured’s professional capacity. Professional liability policies generally have exclusions for “any dishonest, fraudulent, or criminal act or omission,” as well as general exclusions for bodily injury, property damage, or sexual misconduct.

Pro Rata

A Latin word meaning “proportionality”; according to an exact rate, measure, or interest (i.e., the liability will be assessed pro rata between the defendants).

Pro Tanto

A Latin word meaning “only to the extent of; so far; for so much.” In legal terminology, it refers to the partial payment done when a claim is made.

Punitive Damages

Punitive awards by the court intended to punish the defendant for flagrant or willful, wanton, and reckless misconduct, rather than to compensate the patient. Punitive damages are rarely awarded in medical liability cases but are commonly alleged by the plaintiff attorney to secure a settlement.


Insurance purchased by the primary insurance carrier to protect against excess losses. The reinsurer agrees to indemnify a primary company against all or part of the loss that the company may sustain under the policy(ies) issued. For example, a primary insurer may issue a policy for $1 million per incident, $3 million annual aggregates. Under a reinsurance treaty, the reinsurance company may agree to pay all losses above $500,000 per incident, $1.5 million annual aggregates, in return for a premium paid by the primary insurer.

Report Date

The date on which the alleged injury is actually reported to the insurance company. The report date that is recorded can be for an event that resulted in an incident report, a claim, or a lawsuit. A practitioner with claims-made coverage must have a policy in effect on the date the injury or action was reported for coverage to be effective. If the claims-made policy has been canceled “or expired prior to the report date,” the insured must have purchased a reporting endorsement in order for the claim to be covered.

Reporting Endorsement (Tail Coverage)

This provides coverage for claims caused by acts or omissions that occurred during a policy period but reported after a policy has expired or been canceled. Restrictions Limitations placed on MPL coverage that affect the scope of practice.

Retroactive (Retro)

Date First date of coverage for a claims-made policy.

Risk-Based Capital (RBC)

The amount of required capital the insurance company must maintain based on the inherent risks in the insurer’s operations.

Slot Coverage

This type of coverage is offered to group practices and institutions and covers the risk of a “block” of exposures, i.e. several physicians rotating through one full-time equivalent position. In a big group practice, there may be several physicians that rotate in and out of the office but perform as only one full-time physician filling the “slot” on a rotating basis.

Standard of Care

A diagnostic and treatment process a practitioner should follow for a certain type of patient, illness, or clinical circumstance. In legal terms, the level at which the average, prudent provider in a given community would practice. It is how similarly qualified practitioners would have managed the patient’s care under the same or similar circumstances. The plaintiff must establish the appropriate standard of care and demonstrate the standard of care has been breached to pursue a finding of negligence.

Statute of Limitations

A legislative act restricting the time within which legal proceedings may be brought—usually to a fixed period after the occurrence of the events that gave rise to the cause of action.


Opposite a merit rating. In a surcharge program, an insured pays an additional premium if he/she exceeds certain claims experience threshold based on a number of characteristics—including specialty, number of claims, and the outcome and/or the amounts paid for each claim.


The aggregate assets the company has in excess of its direct financial obligations. The surplus is equivalent to the capital and retained earnings or net worth. It is the amount by which assets exceed liabilities.

Tail Coverage—See Reporting Endorsement Territory

The geographic area in which the physician practices. Professional liability premiums can vary greatly between geographic regions of the same state. It is critical that the insured inform the insurer of all regions in which he/she practices, within or outside of one state.

Total Premium Earned

The portion of premium dollars collected by the company which has been allocated to the insurance company’s loss experience, expenses, and profit year-to-date. For an insurance policy with an annual premium of $365, one additional dollar of a premium is earned with the passage of each day.

Treaty Reinsurance

A type of reinsurance in which a reinsurer underwrites part or all of a ceding company’s book of business.

Unallocated Loss Adjustment Expenses (ULAE)

Expenses incurred by the insurance company to resolve claims not attributable to specific claims, such as rent, salaries, and utility costs.

Underwriting Expenses

Expenses incurred by insurance companies to market, sell, and produce insurance policies.

Unearned Premium

The part of the premium applicable to the unexpired part of the policy. It has not yet been earned by the insurance company and is therefore due to the policyholder if the policy should be canceled. Unearned premium is carried as a liability on the company’s balance sheet.

Vicarious Liability

Liability imposed upon a person even though he/she is not a party to the specific occurrence. Insurance coverage can be provided for other health professionals when they are working under direct supervision of the insured physician. For example, an anesthesiologist may have a “vicarious liability” exposure for certified registere

The Starstone Advantage – Excess on Allieds & Senior Care

Starstone Excess

Starstone’s Excess Product on Allieds & Senior Care

Starstone Specialty Insurance Company (formerly Torus), highlights their recent Excess Limits product for surplus lines accounts. Starstone has been upping their game and are boasting very quick turn-around times, flexibility and competitive pricing, and with coverage in all 50 states, it’s easier than ever!

Part of the Enstar Group –  with their “A – ” (Excellent) rating by A.M Best, you can be rest-assured they have the backing and financial stability to provide tailored coverage  options to all their small and middle-market clients. Starstone’s claims philosophy is similarly on-point and consists of fighting for an early resolution when possible, and being transparent in their customer focused service to minimize a client’s service disruption in an event of a claim.

Who is Eligible?

For Allieds:

  • Home Health Care
  • Healthcare Staffing Firms
  • Substance Abuse Facilities & Behavioral Health
  • Urgent Care & Ambulatory Surgery Centers
  • Rehab Facilities
  • * And more!

For Senior Care:

  • Skilled Nursing Facilities
  • Assisted Living Facilities
  • Independent Living Facilities
  • Supplemental Exposure – including Home Health visits & Adult Day Care Participants


Product Highlights

For Allieds:

  • Premiums start at $3K (for $1M limits)
  • Claims Made Form
  • Limits up to $5M

For Senior Care:

  • Limits up to $5M
  • Follow form XS or High Excess
  • Up to 5 facilities or 500 beds


What to Submit?

  • Current loss runs for PL (Professional Liability), GL (General Liability) and AL (Auto-Liability) as needed
  • Underlying Binders and Policies
  • Underlying Quotes for PL, GL and AL when available


P.S. Excess is also available for individual physicians or group practices too. Underlying coverages on GL, AL, Employers Liability and Sexual Misconduct are also available.

Don’t see the class or info you need listed? Find out more on this great product! Contact your favorite HPSI Producer today by e-mail or call us at 678-935-5040.  

Trust HPSI to Navigate Your Risk.

Exclusive MSO Insurance Product with Ironshore


HPSI is excited to announce a new Exclusive Ironshore Product on Managed Care (MSO) Liability Insurance

Healthcare consolidation represents both the greatest threat and greatest opportunity for healthcare insurance firms and those operating in that space. In the last few years, we’ve seen many retail agents losing market share as premiums continue to decline, small practices continue to merge or get acquired, and large systems take on more risk. Others are benefiting – seizing opportunities to grow with their clients and staying ahead of emerging risks.

Staying ahead is key, and to help our best partners thrive in the new era of value-based healthcare, HPSI is pleased to announce this new program with Ironshore! It’s designed to protect large medical practices and management service organizations (MSO’s) from a variety of risks, some of which may not properly be covered.
Read below, and for more information on policy highlights and coverage details please contact our resident expert, Brian Kern, J.D. for more information on this brand new product! Brian Kern can be reached at or by calling our office at 678-935-5040.

HPSI Ironshore MSO Product Marketing Flyer

Cannabis Insurance Coverage – from Kinsale

Cannabis Coverage

Kinsale’s Cannabis Appetite – Insure Your Cannabis Risk!

The word “Cannabis” (another name for Marijuana) has been floating around in the Insurance space for a few years now. Increasing changes in laws across several states that allow for legalization is on an upward trend. Some predict that by 2020 many states will have some form of legalized usage, and it will be a $21 Billion industry. With 2020 right around the corner (and with no idea where all that time has gone!), we think it’s prudent to give some information on Kinsale’s well-rounded Cannabis coverage product.

Federal law currently prohibits doctors from prescribing Cannabis, but they can recommend it, and weirdly enough some states require it. Suffice to say, the exposure of this risk is still in the exploratory phase as use and sale continues to expand. Evolving delivery methods can put clients at risk in new ways. Is a patient ordering it through your client’s App? Watch out for that telemedicine exposure! Kinsale is dedicated to keeping abreast of all these changes and more to adopt their coverage to match your client’s needs.

Insurance Coverage Available for Property, Casualty & Specialty Risks

Eligible Risks:

  • Dispensaries, Retail outlets, & Ancillary products
  • Processors & Laboratories
  • Medical, Food, Drink Supplemental Manufacturers.
  • Biotech Companies in Pain Management
  • Clinical Trials & Product Liability
  • Cannabis Hospitality Business (Bakeries/Café’s/Conventions)
  • Security Firms serving Cannabis businesses
  • Medical Marijuana Evaluation Clinics & Individual Practitioners Providing Evaluations

Coverage Features:

  • Property Primary – $5M to $10M/ Excess – Limits up to $15M
  • Property Ground Up – Limits up to $15M
  • Casualty – Occurrence and Claims-Made, Minimum premium starts at $2,500, Defense Inside
  • Specialty – Allied Health Premiums start at $3,500, Claims-Made
  • Specialty – D&O, EPL, shared or separate limited, Premiums start at $15K
  • Specialty – Professional Liability, premiums and deductible start at $5K

Underwriting Details:

  • Can do carve outs for physicians doing marijuana on the side – minimum premium starts at $2,500
  • Financial liability coverage is available (dependent on state’s law)
  • Product Recall Coverage – can provide a small sub-limit depending on the risk
  • Environment Impairment Liability – can provide site coverage
  • No package deals (aka Property would be a separate quote than Professional Liability)

What is NOT Covered:

  • States where there is no legalization in place
  • No Crop coverage! Inventory must be off the plant
  • No Crime form
  • Coverage excludes willful violation of the law
  • No Hedge funds or Venture Capital funds (but exceptions may be considered)

Kinsale has made it their mission to know the ins and outs of the Cannabis laws in each state. Maybe you already have a client that has some of this exposure, or perhaps you are just tapping in to this new market!  Either way, HPSI can help you find the coverage your client needs.

Contact one of your trusted HPSI Producers for a quote today! Trust HPSI to Navigate Your Risk. Call us today at 678-935-5040.

Hartford Insurance Company’s BOP & Cyber Bundle

Hartford BOP

We’ve come with information from out latest Q&A session with Hartford on their BOP product coverage!

A BOP policy, or a Business Owner’s Policy, essentially combines business liability insurance with business property into one convenient package. Many Carriers offer coverage for this class of risk, so we’ve put together a little cheat sheet of what Hartford does differently to compete in today’s fast moving market.

What does a policy with Hartford bring?

  1. Broad Coverage Form

Which translates to a lesser need for Endorsements! How does this work?

This means that ancillaries and extra coverage options that clients always tack on after binding, are already included in Hartford’s broad coverage form – saving you time and your client money down the road! Let’s be honest here, BOP policies are not the heftiest of accounts, so a hassle free policy with great coverage can save more than a few stones.

2. Competitive Pricing for their Broad Coverage

3. Quick turn-around time with their user friendly Online Quoting System

4. New ! Robust Cyber Bundle

Ability to customize the cyber coverage to fit your client’s needs. Need just data breach protection? 1st & 3rd party options? Done! As part of their bundle,  you can get a host of different coverage options.

And don’t forget that you can enhance your BOP policy if you need data breach protection for up to $500K limits on 1st Party coverage, and $1M limits on 3rd Party!

Is your Client not sure what Cyber they need? Hartford Underwriters and our team of Producers are experienced and well versed in procuring the coverage and customizing the policy for your client!

We could go on and on about Hartford’s A-rating, financial stability, and 200+ years of experience, but you’ve heard the spiel before. So let’s stop the talking and start the writing!

Contact our resident BOP guru, John Malejko@, your preferred producer, or call us at 678-935-5040 for a quote today.

Trust HPSI to Navigate Your Risk. 



CNA’s Southeast Appetite – Insurance for Aging Services Orgs

Aging Services

CNA’s Aging Services Insurance

As always, we keep our ears to the ground to get the latest news for our Agents. The latest from CNA we were surprised to learn is their Aging Services appetite!  Since the demands for the Aging Services market are expending, comprehensive coverage is needed by a company who understands this particular market fully and extends its coverage options to fully accommodate the risk factors.

Well the good news is that not only does CNA understand it, (based on their extensive claims analysis & research), they are actively seeking out those accounts!  They have pin-pointed what causes the most claims and are continually working with providers on promoting quality care and increasing safety standards.

CNA’s current Aging Services appetite is focused on expanding in the Southeast region – Georgia, South Carolina, Alabama & Tennessee.

Types of Risk they cover for Aging Services:

  • Independent Living Facilities
  • Assisted Living Facilities
  • Life Planning Communities
  • Faith based organizations & Not-for-profit organizations
  • Stand-Alone Nursing Homes (less than 500 beds)
  • Home Health Care (that’s part of the facility)
  • Facilities in growth areas (rural, etc.)

Underwriting Details:

  • No Minimum Premiums set
  • Standard Limits ($1m/$3m or as needed)
  • $0 Deductible Options
  • Incident Sensitive, Defense Outside
  • Multi-line coverage to reduce any gaps (PL/GL/EBL)
  • Can add Auto & Property Coverage!
  • Umbrella & Excess available
  • Risk Consultants and Resident Fall Prevention programs
  • Occurrence coverage available in certain areas
  • Medical Directors covered (admin duties only)

Contact us to send in a submission! We have dedicated Producers & Production Staff that will work hard to get competitive quotes for your risk. Visit us at or call us at 678-935-5040.

Trust HPSI to Navigate Your Risk. 



Things We’ve Noticed – News on Market Going-ons

What we have Noticed

Review on What We’ve Noticed in the Market Today.

As the end of summer is nigh and the 7/1 rush has now become the 9/1 rush, we want to take this time to update you on a few things we’ve noticed with certain classes.

At HPSI our Producers stay on top of market intelligence to help place your accounts faster and with the best company that has the price, service and coverage form to fit your client’s needs.

Trust HPSI to Navigate Your Risk.

Non-Physician Owned Clinics – This is a growing class of business, only limited by a particular state’s law.  Coverage is available for Allieds and as well as Physicians who supervise via chart review or as medical director in these situations. We have multiple Carriers willing to cover this risk!

Premium can start as low as $1,500 (for limited personnel)

Examples we see: Medspas, Anti-Aging, Weight loss, Urgent Care, Rehab, Physical Therapy, Walk-in, etc.

Available in most states.  Contact us to get a great quote!

Locum Tenens  –  Another class to look out for! Locums Staffing companies for Allieds and Physicians are on the rise. Providers are drawn to the flexibility this type of work offers and the need for staffing services has been steadily increasing within the medical sphere.

Hard to Place Classes
But we can help!

Midwives – Carrier options have certainly dwindled for this class of Allied Providers over the last 5  years. Premiums are much higher with fewer competitive options to choose from, and stand-alone coverage without supervision is harder to place.

Correctional Medicine – We’ve noticed this market hardening up substantially!  Fewer Carriers are writing it, and the few remaining are charging higher premiums and equally high deductibles.

Look out for more pieces on “Thing’s We’ve Noticed” to come, featuring recent success stories and other industry transitions and trends happening in this space, + more on what we are expanding to write.

Writing New Business – Access to Great American!

Great American Access

The New Business Hustle – Aiming to write more with Great American!

We are all hustling to write more new business. More new business this year is fodder for our renewals next year and hopefully the year after. Do you have year-end goals you need to meet? Well, we are in the same boat my friend, trying to stay afloat until high tide comes rolling back again.

At HPSI we are driven to evolve and offer new Products and Markets to fit the current needs of our clients, and maybe offer some that are not anticipated, but nevertheless needed just the same.

Here is where I bring you up to speed with our latest market, Great American. With Great American, we can write not just your E&S Property policies, but also your:

  • Social Service Agencies
  • Churches
  • Educational Institutions
  • Physical Fitness Centers
  • And more!

Great American writes the business policies of more than 200 classes of human and social service organizations in addition to the Property and Inland Marine coverage we normally go after. They have great coverage, and have been  “A” rated by A.M. Best for over 100 years and counting. You can trust your clients will be getting a great financially reliable Insurance Carrier with dedicated claims specialists to assist in their time of need.

P.S. And don’t forget! Writing more new business is always great for a healthier bottom line for everyone. What do you see what you need Markets for? Talk to us and let us know!

Trust HPSI to Navigate Your Risk.

And remember to send us those submissions! We write more than just med-mal nowadays and have dedicated staff with the know-how to place the coverage. Contact one of your favorite HPSI Producers today by e-mail or call us at 678-935-5040. What can we help you write today?