Resources
for this Product
FormsApplication (bpp1010)
Marketing Support
Please visit Allied World's reference library for additional information.
Please do not send submissions to the underwriting contact. Refer to Submission Requirements for more information.
Benefit Plan Purchaser
Errors and Omissions Liability Insurance
As a way to control rising healthcare (and other benefit)
costs, more and more employers are offering alternative employee benefit
programs. Some have taken on the role of managing all or part of their own
programs, and that can expose them to many of the same exposures and liabilities
typically faced by managed care organizations.
Allied World recognizes the growing need to protect employers that are taking on
additional responsibility for their benefit plan offerings. There are many
associated exposures that are just not covered by other existing insurance
policies. For example, employers typically buy a Fiduciary policy believing that
it will protect them as a purchaser of employee benefits. However, critical
coverage components, like vicarious bodily injury coverage, are often missing
from this type of policy.
As a leading insurer of traditional healthcare organizations, we've created a
Benefit Plan Purchaser policy that includes the same spectrum of protection we
normally provide for our managed care organizations (such as vicarious bodily
injury and HIPAA regulatory coverage). Using our specialized experience and vast
knowledge of the healthcare market, Allied World crafted a new type of coverage for
organizations which are outside the healthcare spectrum but are now exposed to
health care benefit risks. We can provide these organizations with the same
superior coverage protection and complimentary risk management services that our
healthcare policyholders receive.
Benefit Plan Purchaser Errors and Omissions (E&O) coverage protects employers or organizations who purchase benefits on behalf of their employees or members. These are not traditional managed care entities, but rather companies (manufacturers, banks, airlines, etc) or labor organizations (unions, associations, Taft Hartley Plans, etc.) who oversee all or part of their benefits program. These organizations generally fall into three categories:
1. Employers that are fully insured and contract the services of traditional healthcare and other benefit companies.
2. Employers that are self-insured but use a Third Party Administrator (TPA) or Administrative Services Organization (ASO) for the administration of their benefits.
3. Employers that are self-insured and self-administer their plan (organizations that act like an HMO).
Activities/Services Covered
Our Benefit Plan Purchaser policy provides E&O coverage for any healthcare, vision, dental, disability, worker's compensation, prescription benefit management, healthcare reimbursement or flexible spending plan that is offered to participants (whether performed by or on behalf of an insured). Covered Services include:- Provider selection
- Utilization review
- Advertising, marketing or selling
- Claims services
- Establishing provider networks
- Reviewing the quality of medical services or providing quality assurance
- Design and/or implementation of financial incentive plans
- Wellness or health promotion education
- Administration, selection, servicing or management of any benefit plan, including giving advice, counsel or notice to participants or prospective participants
- Arranging for the provision of medical services
- Handling records
- Effecting enrollment, termination or cancellation of coverage
- $25 Million
Features & Highlights
Our policy is available on either a duty to defend or indemnity basis:- Broad definition of claim, including regulatory proceedings and investigations
- Includes 'By or on Behalf of' language
- Full coverage for punitive damages with most favorable venue, where insurable by law
- Includes coverage for HIPAA fines and penalties
- Coverage available for unions/collective bargaining units
- Personally identifiable information protection included
- Automatic 90 day ERP
- Worldwide coverage
- Coverage for medical tourism available
- Vicarious bodily injury coverage
Jurisdictions
-
Available on Surplus Lines Paper
Submission
Requirements
Allied World can quote from most competitors' applications. However, for primary
coverage a completed, signed Allied World application is required prior to issuing a
policy.
Access to this product is available only to Allied World approved producers. Approved producers may email account submissions to submissions@darwinpro.com, fax them to 860 284 1302, or mail them to the address below.
If you are not a Allied World approved producer,
click here for a list of approved referral
wholesalers for this line of business.