While the primary focus of this site is on one of the larger expenses of a Locum Tenen company, the Medical Malpractice insurance, there are other lines of insurance that come into play. This page is designed to review the other common policies that are purchased by locum tenen companies or are required by way of contract with a VMS/MSP or client.
General Liability Insurance - While professional liability insurance is designed to insure against "professional services rendered to a patient", General Liability is designed to insure against third party Bodily Injury or Property Damage. It is important to note that the reason a professional liability policy is needed is that "professional services" are excluded from a General Liability policy. For General Liability, there are several options for a locum tenen policy. It can be purchased as a "stand alone" coverage, it can be included in a "BOP", or it can be included on a professional liability policy. For reference sake, the difference between general liability and professional liability can sometimes be grey. For instance, the doctor you placed is providing services at an urgent care facility. He/she is done providing services and the patients falls as he/she exits the exam table. There will be an issue whether this is a general liability claim or a professional liability claim due to the confusion on whether professional services were still being rendered. If they were, it is a professional liability claim. If they weren't, it is a general liability claim. The facts of the case and the pleading in the suit will determine this.
If General Liability is part of a stand alone policy or a BOP, it most likely does not include coverage for the providers you place and is more than likely limited to just the premises of your office (for what it's worth, this is more than likely what the contract is requiring). If the General Liability is included as part of your professional liability, it most likely will include coverage for the actual provider. Consequently, this is preferred. However, it is usually more expensive to add General Liability to your Professional Liability as opposed to a stand alone policy or BOP since the coverage extends to the acts of the provider.
BOP - A Business Owners Policy/Package is usually referred to as a BOP. These policies usually provide General Liability and Property Insurance. They can also sometimes provide workers compensation, EPLI, Hired and Non-Owned liability and Employment Practices Liability. They are designed for small to mid-size companies. Just in reference to General Liability, they will only provide General Liability for the premises of your office and will not extend to the General Liability of the providers. They are also usually fairly difficult to get additional insured as required by various clients and VMS/MSP's.
Workers Compensation - Workers Compensation is designed to protect employees while injured in the working environment. For the Locum Tenens environment, it is imperative that you DO NOT provide workers compensation for the providers (unless you also place mid-levels and employ them). For Locum Tenens placing physicians, they are ALWAYS Independant Contractors and never employees. If you provide them with workers compensation insurance, not only does that significantly increase your premium since the premium is based off of payroll, it can also be used against you to argue they are employees rather than independant contractors. If the providers are considered employees, this has tax ramifications, serious liability ramifications and legal ramifications as it could violate the "corporate practice of medicine doctrine".
Employment Practices Liability Insurance (EPLI) - EPLI is mainly designed to protect you in the event of alleged discrimination or sexual harassment. They are offered as a stand alone product or as part of a Directors and Officers Policy.
Errors & Omissions (E&O) - Technically, a Medical Malpractice Policy is a E&O policy. However, in this regard, it is referencing the E&O of the Locum company and mainly designed to protect against the liability of the professional activities of the Locum company. There are times when contracts state E&O but are really referring to Medical Malpractice.
Hired and Non-Owned Auto Liability - This policy, which can be a stand alone offering or as part of a BOP, covers the liability (and possibly property damage) of vehicles that are not owned by you but are driven by your employees. This is rarely required by a contract.
Commercial Auto Liability - This is the alternative of a Hired and Non-Owned Auto Liability policy. This covers the liability and property damage of the vehicles owned and operated by the company and its employees.
Commercial Property - This is much like a Homewoners policy but it covers the property owned by the corporation. It can be part of a BOP if the property is low enough in value.
Directors & Officers (D&O) - A D&O policy covers the liability of the Directors and Officers to third parties. This usually includes suits by shareholders for a decrease in the value of their shares, it can also include anti-trust and restraint of trade complaints. This policy, as part of the "management liability" suite, can be purchased alone or as part of a package with EPLI, Cyber and Crime policies. This line is very rarely required by way of contracts.
Regulatory Liability - Regulatory liability is mainly concerned with the defense costs, and fines, of regulatory bodies investigating you for fraud or over-billing. This can be a stand alone product or sometimes even included in the professional liability policy.
Cyber Liability - Cyber liability is connected to breaches in your electronic data that reveal sensitive or protective health information to third parties. Due to recent regulations, the fines, reporting costs, and penalties for this can be extremely high. Cyber can be purchased as a stand alone product or be part of the professional liability policy.