What are the risks that digital health businesses face?

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The introduction of technology into healthcare offers significant benefits for healthcare providers and patients alike, providing on-demand access to high quality and often specialist medical expertise that may be difficult or impossible to access locally. But these advantages come with additional risks. Technology companies may be less familiar with bodily injury and medical malpractice exposure — and medical companies may need help navigating technology errors & omissions and cyber risk. So, it’s important to have a partner who understands it all and how to pull together bespoke cover managed under one convenient policy.

What kind of claims does Beazley see?

Cyber

The insured hosts an application which connects doctors with patients seeking treatment for sensitive health issues. A threat actor compromised and gained access to the insured’s network and downloaded personal health information (PHI) belonging to 7,000 patients. The threat actor then emailed the insured and threatened to publicly release the private patient information unless the insured made an extortion payment worth hundreds of thousands of dollars. The insured engaged privacy counsel and forensics to contain and investigate the issue. It was ultimately determined that the insured had a legal obligation to notify the 7,000 patients and several regulatory bodies pursuant to various data breach notice laws.

An IT vendor had inadvertently exposed an unsecure file containing over 30,000 patients’ billing information such that it was searchable on the internet using search engines such as Google. The hospital discovered the incident during security testing when a larger healthcare system acquired the hospital. The information exposed included names, date of births, addresses, treatment information, and insurance information. The hospital utilised outside legal, forensics, notification services, a call centre, credit monitoring and crisis management. The hospital was investigated by multiple regulatory authorities.

MEDICAL MALPRACTICE

The claimant alleged one week of pain due to an insured's assistant’s failure to conduct a physical exam, which would have revealed a piece of glass in his foot. The claimant also alleged negligence in prescribing antibiotics without informed consent and claimed the insured prescribed a penicillin derivative that could have resulted in a need for an epi-pen, which might've been fatal as the claimant has a pre-existing aortic aneurysm.

A claimant alleged that the insured informed her minor son that he has premature baldness, which negatively impacted his existing mental illness. The insured does not treat minor patients and that claimant's son misrepresented his age during online consultation.

A complaint was filed against a psychologist alleging negligent misconduct and injuries to the claimant's marriage by having an inappropriate text relationship with the husband of the couple being treated by the psychologist.

TECH SERVICES, TECH PRODUCTS & MEDIA LIABILITY

The insured provides and markets various medical alert devices. A complaint was filed against the insured alleging the emergency alert device for the elderly did not properly alert the appropriate individuals that the device wearer required medical assistance.

WHO NEEDS VIRTUAL CARE INSURANCE?

What happens when a digital health business has a claim?

We know it’s critical to have an insurance partner who can guide you through the claims process calmly and expertly, making it truly seamless and simple.

That’s why we hire smart people and empower them to act. You’ll always speak to people who know the history and the context of your claim, can make thoughtful recommendations, and take decisive action in a timely manner.