CFC introduces medical billings cover for US healthcare providers

Comprehensive policy provides protection against allegation of healthcare fraud and abuse, includes cyber and privacy cover

London, 12 September 2018 — Specialist insurance provider, CFC, has introduced a new product to its growing suite of healthcare insurance solutions available to US healthcare providers.

Allegations of healthcare fraud and abuse by government entities and private payers are more prevalent than ever before. CFC’s new Medical Billings insurance covers the defense costs of actual or alleged billings fraud as well as expenses arising from an independent audit on billing practices following an allegation of fraud.

Timothy Boyce, US Healthcare Team Leader at CFC, comments: “Since the formation of the False Claims Act, allegations of healthcare fraud and abuse have increased exponentially. Healthcare providers have to navigate a challenging and often confusing set of reimbursement guidelines which has seen the rate of billing errors rise above 30 percent. Our new Medical Billings product has been specifically designed to provide comprehensive protection following billing error allegations by the federal government, private payers or regulatory investigations.”

The policy also offers reimbursement for fines and penalties arising out of a range of medical regulatory violations including HIPAA-related fines and penalties, Stark law, EMTALA and Federal False Claims and Social Security Acts.

Its cyber and privacy insuring clause has been tailored to address the specific cyber exposures faced by healthcare companies and includes specific references to HIPAA and HiTECH legislation, as well as offering a separate section for extortion to address the growing threat of ransomware.

CFC’s Medical Billings product is the latest in its extensive portfolio of healthcare insurance solutions for US companies.

  • Launched last fall, CFC’s ground-breaking eHealth product now insures hundreds of US domiciled companies, offering telemedicine related services to the US military and Veterans Association in more than 70 countries. Providing a blend of medical malpractice, tech E&O and cyber, the policy is designed to eliminate the gaps present in traditional insurance offerings for digital healthcare companies..
  • CFC’s healthcare suite also includes tailored solutions for allied health and medical practitioners working in a wide range of specializations, long term care facility providers, and businesses and individuals working in the health & wellness arena.
  • A leading provider of cyber insurance, CFC launched an expanded version of its standalone cyber policy for US healthcare providers in April.

“We’re constantly reviewing the needs of the healthcare industry, as well as the changing regulatory landscape, to ensure we’re offering valuable, compelling solutions to our US healthcare insureds” adds Boyce.

For more information, please head to the Medical Billings product page.

Cyber Claims Case Study: Reputational Repercussions – Online Retailer Grapples with Data Breach

This month’s cyber claims case study tells the story of an online retailer that had to notify over 90,000 customers following a breach of credit card details, leading to a damaged reputation and subsequent income loss. To find out how our policy responded, read the full case study here.

The key takeaway points are as follows:

  • As businesses become increasingly dependent on their computer systems to perform critical elements of their operations, it comes as no surprise that financial losses due to system outages are becoming both more frequent and severe. However, brokers and their clients shouldn’t focus solely on system outages when it comes to business interruption.
  • Often referred to as consequential reputational harm, business interruption as a result of a data breach is starting to impact many organisations and can be equally as disruptive as a system outage. In such cases, even though an insured may not have suffered any meaningful system downtime, they can suffer serious reputational harm in the eyes of their customers and suppliers, resulting in a subsequent drop-off in income.
  • The financial impact of a cyber incident can be long-lasting and the value of having longer indemnity periods in cyber policies is becoming increasingly apparent. The insured’s policy with CFC had a 12-month indemnity period in place, but many cyber policies only offer 3-6 month indemnity periods as standard. In this case, had the policyholder only had a 3 month indemnity period, they would only have been eligible to claim for three months’ worth of lost profits rather than 12.

Although the insured was based in the US, the importance of having reputational harm cover will become increasingly relevant to most organisations outside of the US as well. The notification requirements introduced by the GDPR, the Notifiable Data Breaches Scheme in Australia and the Digital Privacy Act in Canada will mean that notifying customers of data breaches will become more common and the risk of consequential reputational harm will increase.

Read the full case study here.

CFC now offers Umbrella Excess cover

Suited man with technological umbrellaWe know what you’re thinking… in London without an umbrella?!

Not anymore!

CFC now offers Umbrella Excess to new and existing clients in the US.

With limits of up to $5 million, our Umbrella Excess can sit over a client’s auto, employers’ liability, general liability and errors & omissions policies. The policy extends a client’s primary limits providing extra peace of mind and maximum protection.

Umbrella Excess is offered by our Professions, Technology, Healthcare, Media, Life Science and Property & Casualty teams, and is available for a wide range of professional firms. From accountants and architects to IT programmers and recruitment agencies – if we’d offer an E&O policy, we’ll likely be able to write the excess cover.

Read our coverage highlights here, or get in touch with our underwriting teams to learn more.

CFC expands cyber proposition for US healthcare providers

CFC expands cyber proposition for US healthcare providersToday we’re pleased to announce the newest version of our cyber insurance product for US healthcare providers. With the latest policy, CFC enhances its combined cover for privacy and operational disruption with industry-specific features to help healthcare organizations prepare for and respond to cyber incidents as well as comply with industry regulations.

“While most healthcare providers are aware of their privacy and data breach exposures, they can easily overlook cover for operational disruption. The unprecedented increase in malware attacks has shown that operational exposures must be addressed – in fact, we’re now seeing the costs of operational disruption and rebuilding far exceed what a large-scale privacy breach might cost the same entity,” said CFC Cyber Product Leader, James Burns. “Our stand-alone cyber product for the US healthcare sector is tailored to their unique risks, helping limit the impact of a cyber incident on their organization.”

CFC’s latest cyber insurance product addresses the exposures and regulatory requirements unique to US healthcare organizations and ensures that core elements of cover are available each time a crisis strikes, even if a policyholder experiences multiple cyber incidents in the same policy period.

Unlike most cyber insurance products, CFC’s cyber policies offer the provision of first party cover on an “each and every claim” basis and don’t restrict policyholders with policy aggregates. Additionally, CFC’s cyber offering for US healthcare providers is one of the only available cyber products to include cover for HIPAA corrective action plans and cover for bodily injury resulting from a cyber attack alongside cover for the costs associated with improving risk management controls following a breach, system repair costs and incident response costs in addition to the limit.

Burns adds: “CFC offers a market-leading cyber insurance product backed by a global response capability which ensures our policyholders not only have comprehensive cover, but that they can recover quickly from cyber incidents.”

CFC has the largest dedicated cyber underwriting and claims team in the London market. Learn more about CFC’s Cyber for Healthcare insurance offering, or read the CFC cyber blog.

CFC launches new insurance solution for nutraceutical companies

New product announcement Today we are excited to announce an innovative addition to our life science suite of products with the launch of our new insurance solution designed specifically for nutraceutical businesses in the US.
Interest in health and nutrition-related products is on the rise, making nutraceuticals an exciting industry. But just like any company that manufactures or distributes products, nutraceutical companies are exposed to a range of risks, both traditional and emerging, which this policy combines into a single package.
Coverages include products liability, commercial general liability and cyber. Broad product recall cover can also be included, protecting against accidental contamination, malicious product tampering, cyber malicious product tampering, product extortion and government action.

We have also tailored the cyber cover in this new policy to address changes to the manufacturing infrastructure caused by a cyber attack as well as offering defined cover for extortion to address the growing threat of ransomware and cyber crime.

Sean Burke, our Life Science Team Leader says: “We’ve had a lot of success with our life science and medical devices products, so providing a policy for the growing nutraceutical space felt like a natural next step in developing this suite. We believe we’ve provided a well-rounded policy making it easy for these businesses to get essential coverages like products liability while also addressing emerging risks such as cyber crime, recall events and more.”

This streamlined insurance solution provides a products liability limit of up to $5m and a general liability limit of up to $7m. Premiums start from as little as $2,500.

CFC launches event package policy

CFC launches event package policyWe’re happy to announce that we have expanded our contingency insurance offering with the launch of a brand new event insurance package policy in the US and Canada.

This new solution enables brokers to deliver to their clients comprehensive event cancellation as well as general liability and property cover for the event all under one policy. Also available on a standalone basis, the event cancellation component covers the costs associated with an event being cancelled, abandoned, postponed, or relocated for reasons outside of the insured’s control, including the non-appearance of a participant.

Matt Helm, Contingency Practice Leader at CFC, explains: “When it comes to events, there are a lot of moving parts and a lot can go wrong if the unforeseeable happens. Historically, brokers have had to pull a patchwork of policies together to provide their clients with comprehensive cover. That has changed with the introduction of our new event insurance policy. Our broad package solution provides limits of up to $5m in the US and $10m in Canada, and gives brokers and clients a one-stop-shop saving them both time and money.”

CFC’s new product enables organisers to protect the financial investment of their event including everything from agreements with spectators, staff and performers to building and contents damage. Optional extras include cover for terrorism, adverse weather, earthquakes, communicable diseases and non-appearance.

The policy will be available in other territories in the following months. Stay tuned!

CFC launches new insurance solution for US-based eHealth companies

Medical technology concept. Electronic medical record.Specialist lines underwriting agency, CFC Underwriting, today announces the launch of a brand new insurance solution for US companies and individual practitioners who provide telemedicine and other eHealth services.

In what is believed to be a first for this industry sector, CFC’s new policy provides affirmative coverage for bodily injury arising from both the advice companies and practitioners provide as well as bodily injury arising from technology failures and cyber incidents.

Timothy Boyce, CFC’s US Healthcare Team Leader, says: “Practitioners and companies operating in the eHealth space often bridge both the healthcare and technology sector meaning that they are open to a wide range of risks. In particular, as technology advancements continue to play a more crucial role in how healthcare is delivered, monitored and addressed, the potential problems these companies face from cyber events and system outages is very real. That’s why we’ve developed a policy which truly addresses the eHealth industry’s unique risk profile.”

CFC has tailored cyber and privacy cover in this new policy to address eHealth companies’ specific cyber exposures. As well as a separate section for extortion to address the growing threat of ransomware, CFC’s policy also covers HIPAA-related fines, penalties and resolution agreements. Cyber incident response services are offered with a nil deductible as standard.

Other features of the new offering include automatic coverage for physicians and practitioners, a separate section for technology E&O, breach of contract cover, and failure to perform cover for wearables and self-monitoring healthcare devices that have been manufactured or distributed by the insured.

CFC partners with CyberScout to provide identity management services

CFC partners with CyberScout to provide identity management servicesWe’re pleased to announce that we’ve partnered with CyberScout™, identity management and data theft service experts, to offer innovative, best-in-class cyber support services to our customers internationally.

“Cyber risk has become a fact of life for every organisation in today’s connected world,” said Anthony Hess, Head of Incident Response at CFC. “As cyber crime becomes more complex and sophisticated, partner network providers like CyberScout can round out in-house capabilities with their own expertise, and can offer innovative, high-quality services on a global scale.”

CyberScout provides CFC customers with help in three areas: identity theft remediation, consumer notification and cyber fraud monitoring. Our customers now have the option of direct access to CyberScout’s highly experienced fraud specialists. In annual customer surveys, CyberScout earns 99% satisfaction ratings, year after year. These services complement our current offerings which include a wide range of internal and partner-provided risk management services as well as our in-house incident response team, which is activated by an award-winning cyber incident response app 24 hours a day, 7 days a week.

“With this partnership, CyberScout looks forward to collaborating with CFC Underwriting and its underwriters in the London Market,” said Tom Spier, CyberScout’s International Director of Business Development. “Already CyberScout offers its services to millions of consumers in partnership with 16 of the top 20 U.S. property and casualty insurance carriers, and six of the top seven Canadian insurers, as well as global Lloyd’s Syndicates.”

CFC increases limits on transaction liability products

CFC increases limits across transaction liability product suiteToday, we’re happy to announce that we have increased the available limits of our transaction liability insurance product suite across all territories.

We now have the capacity to offer limits up to $50m in North America, £30 million in the UK, €35 million in Euro zone countries and AU$50m in Australia.

Matthew Giddings, Transaction Liability Practice Leader, says: “Transaction liability insurance continues to gain traction with an increasing proportion of M&A deals using this type of cover as both a risk management and deal facilitation tool.

“CFC’s transaction liability practice has enjoyed a strong first trading period. Our focus on service, the experience of our underwriters and our ability to leverage other CFC specialisms such as cyber, intellectual property and product recall make us an attractive market. The increase in our capacity is an endorsement of our proposition in this fast-growing and competitive sector. We’re positive about the future and look forward to building on the success of our first year throughout 2017.”

Backed 100 percent by various Lloyd’s syndicates, the CFC offering is designed to meet the needs of clients and M&A professionals in the mid-market, lower mid-market and SME spaces across the world.

CFC announces US cyber insurance roadshow

CFC announces US cyber insurance roadshowLondon-based cyber insurance specialist, CFC Underwriting, has announced that its cyber team will be on tour in the US from the 7th through the 10th March.

The team will be holding four interactive sessions with brokers in San Francisco, Chicago, Atlanta and New York. Running from 9.00 am to 11.30 am each session will delve into cyber crime, emerging security threats, policy trends, and the CFC approach to cyber insurance and will close with an interactive Q&A allowing brokers to put their questions to the CFC experts. Sessions will also include a breakout to discuss non-physical perils and intangible assets.

CFC’s Cyber Practice Leader, Vicky Paxton, says: “The CFC cyber team is back in the US by popular demand! We hit the road last year and received great feedback from all the brokers we met. We’re looking forward to sharing our thoughts on how the cyber market is developing and answer as many questions as possible from old friends and new faces.”

Spaces are strictly limited at all venues and brokers can reserve a place on a first come, first served basis by contacting Georgia Harris at gharris@cfcunderwriting.com.

Monday March 7th – Hotel Adagio, San Francisco
Tuesday March 8th – Sofitel Water Tower, Chicago
Wednesday March 9th – Glenn Hotel, Atlanta
Thursday March 10th – Langham Place, New York