Closing the Insurance Gap: Ensuring Protection for Digital Health Companies
How healthtech companies are subject to insurance exclusions that could leave them vulnerable.
Digital Health Companies: Risks and Challenges
Digital health is rapidly changing the healthcare landscape, with more patients opting for online consultations and medical services. Healthtech companies are making it easier than ever to access healthcare services from the comfort of our homes. However, with this digital transformation comes new challenges and risks, particularly in terms of insurance coverage.
As healthtech companies continue to innovate and offer new services, it's crucial for founders and executives to understand the risks and take steps to protect their companies from potential liability. One area of particular concern is insurance coverage, which can be complex and difficult to navigate given the gray area of liability presented by virtual care environments. While most businesses need some form of insurance coverage to protect against risks like property damage, liability, and cyber attacks, digital health companies are subject to elevated levels of liability, especially those conducting care provision, writing prescriptions, or providing clinical diagnostic support.
The Risks of Digital Delivery
In the digital delivery of healthcare services, a key challenge is the ambiguity surrounding liability. For instance, while it is evident that medical malpractice insurance can cover professional errors made by a physician, the situation becomes less clear with respect to mistakes made by digital platforms or software in facilitating healthcare services.
What if, for example, a platform (rather than a human) is providing medical advice or facilitating health services? Who is at fault if that service leads to an undesired outcome? If software is causing the error rather than a human, who is at fault? These are complex questions with potentially catastrophic liability that’s not clearly addressed by many traditional insurance policies.
Similarly, if sensitive health data is stolen as a result of a cyber attack, and it results in mental anguish to a patient, who is at fault? And will your cyber insurance cover it? Unfortunately, most Cyber and Tech E&O policies in the insurance market explicitly exclude bodily and personal injury. This signifies a gap in coverage that could leave digital health companies vulnerable in the event of an allegation or lawsuit..
Vouch: Customized Insurance Coverage for Digital Health Companies
This is where Vouch comes in. Vouch is a digital insurance platform that provides customized coverage for digital health companies. With its exclusive Digital Health Endorsement, Vouch adds protections to Cyber and E&O policies designed specifically for the unique risks of Digital Health Companies:
What makes Vouch's coverage different from typical E&O and Cyber insurance policies? First, it addresses the gaps in coverage that are common for Digital Health companies. This includes coverage for bodily and personal injury, which are typically excluded from standard policies. With Vouch's coverage, digital health companies get peace of mind knowing that they are protected in these edge case scenarios.
Secondly, Vouch's coverage includes a range of other benefits tailored to the needs of digital health companies. For instance, Vouch's Cyber E&O policy covers a broad range of technology errors and omissions, including network security failures, breach of contract, and intellectual property infringement. This coverage allows digital health companies to avoid costly legal battles and focus on what they do best, improving healthcare outcomes for patients.
Examples of Digital Health Coverage in Action
Below are several examples of scenarios that Vouch's coverage is built to insure:
- A telemedicine platform experiences a data breach that exposes sensitive patient information. As a result, patients experience mental anguish and file a lawsuit against the company.
- A healthcare SaaS company develops software that is used to diagnose patients. However, a glitch in the software causes it to recommend the wrong treatment to a patient, resulting in harm. The patient files a lawsuit against the company.
- A digital health startup offers a platform that connects patients with clinical trials. However, the platform inadvertently matches a patient with a trial that is not appropriate for their condition, resulting in harm. The patient files a lawsuit against the company.
In each of these scenarios, Vouch's coverage would help ensure that the digital health company is protected and can continue operating without interruption
Summing It All Up
In conclusion, digital health companies face unique challenges when it comes to insurance. With most policies excluding bodily and personal injury, there is a gap in coverage that could leave companies vulnerable. However, Vouch offers a solution that addresses these gaps and provides the protection that digital health companies need to operate with confidence. If you're a digital health company looking for insurance coverage, get in touch with a Vouch representative today to learn more about your options.