A Lloyd’s syndicate operating in several countries, Beazley has launched a comprehensive errors and omissions liability insurance product covering many types of interaction between technology and health care.
Launched in Canada on April 7, 2020, by Beazley Canada, Virtual Care targets health care and technology specialists. It covers several risks associated with providing health care via technology, ranging from medical malpractice to cybersecurity.
In addition to telehealth, coverage includes risks associated with apps and wearables, which permit self-monitoring of chronic conditions, and lifestyle and wellness technologies.
Wide range of risks
The basic policy includes medical malpractice and professional indemnity, tech and media liability, public and products liability, and cyber coverage. Its cyber coverage protects against a broad range of cyber threats including business interruption and cyber extortion.
Beazley Canada also offers optional extensions to Virtual Care; one includes mitigation costs, abuse and harassment liability, and medical regulatory costs, while another includes claims due to loss of documents or reputational damage costs and environmental liability costs.
Risk magnified by COVID-19
Beazley Canada cites the coronavirus as a factor justifying the Canadian launch of this product, which it already offers elsewhere in the world. The company believes that the COVID-19 pandemic has dramatically increased demand for telemedicine, and many providers are expanding or adding these services to meet demand and protect both patients and healthcare providers.
“Digital health services are growing rapidly, and COVID-19 will undoubtedly accelerate the use of virtual care services in Canada,” Derek Dow, underwriter, miscellaneous medical and life sciences, at Beazley Canada told Insurance Portal. Dow notes that, according to the Canadian Medical Association, 70% of Canadians would take a virtual appointment if available, and 71% would like to be able to book appointments online.
More and more healthcare is provided remotely using technology, according to Dow, and the risk of claims could be magnified by COVID-19. “The risks of telemedicine aren’t necessarily different from what they were before the pandemic, but telemedicine providers will now feel the pressure,” he added.
Dow notes that medical malpractice risks include injuries caused by a negligent act, error or omission, accident, or cyber-incident. The Virtual Care policy also covers liability risks associated with tech failure. Traditionally, he says, clients would have needed more than one policy to cover all such risks.
Adapted for the Canadian market
Dow observes that Beazley has Canadian roots, having acquired wholesaler Creechurch Underwriting in Canada in February 2017 and renamed it Beazley Canada.
He explains that this Canadian launch builds on both Beazley’s global experience and its existing medical and life sciences offering in Canada. “Our Virtual Care product was adapted specifically to meet the needs of the Canadian market,” says Dow. “Beazley’s presence in Canada is built on Creechurch’s strong reputation for providing tailored insurance programs to small and medium enterprises since its foundation in 1996.
Dow adds that, since the acquisition, the Beazley Canada team has expanded into new target areas. “We’ve made appointments in the areas of healthcare, environmental liability, technology and media, cyber risks, and data theft, including our first Canadian cyber breach response manager, Priya Kunthasami.”
Beazley launched its first Virtual Care product in the U.S. in 2017, followed by a Virtual Care product tailored to the UK market in September 2019. Beazley also has operations in Europe, Asia Pacific, and South America.
Life sciences
Along with the launch of Virtual Care in the Canadian market is that of BioSecure, a broad, flexible policy meeting emerging needs in the life sciences sector. Coverage includes product liability, general liability, professional indemnity, clinical research services, medical malpractice, and clinical trials.