Insurance for Digital Health Companies
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What is Digital Health insurance?
Specialist digital health and technology insurance is a tailored package of insurance precisely designed for scenarios where technology is integrated into the patient and user experience. This could be anything from AI-assisted diagnostics in hospitals to wearable consumer tech, to online GP service providers.
What does Digital Health insurance cover?
Medical technology and related businesses tend to face risks that standard insurance policies struggle to define, and thus, protect against. Would a claim be categorised as medical malpractice? Professional indemnity? Product Liability? Or is it Cyber?
With Howden, a team of medical and technology specialists will discuss your business with you, then help to create a comprehensive policy to fit your particular needs.
Core elements of a Digital Health insurance policy
Medical malpractice insurance covers medical professionals against allegations of negligence when a patient makes a complaint. For a digital health company, they can find the allegations come directly to them, rather than any individual health professional.
Problems arising in any tech-enabled diagnosis/ treatment provision itself are likely to be considered medical malpractice, especially when they cause harm, either physical or mental.
Of course, any investigated allegation may find the fault lay elsewhere, this could be individual errors or systematic failure of either the medical or technology side.
A fault in the software code or a server outage, for example, would usually be excluded, so a traditional malpractice policy would not respond. We add professional indemnity cover, ensuring its usual bodily injury exclusion is removed.
For any innovative tech company, IP infringement cuts both ways. People can copy your work, or you may inadvertently copy theirs.
IP cover can include:
- Defence against patent and IP infringement claims
- Contractual indemnities cover
- Loss of an intellectual property right
- Loss of future profit.
Whether you’re selling to hospitals, clinics or the public, if your products cause damage, illness or injury, it is likely a plaintiff (or group of plaintiffs) will seek compensation through the courts. Even if you didn’t manufacture the product, by selling it, you fall into the chain of liability.
Product Liability insurance protects against claims for personal injury or property damage arising from products sold by your business.
Cyber Liability is an everyday risk for digital healthcare companies who hold medical or patient data.
Cyber insurance provides cover for:
- Incident response support, including IT forensics, Legal and PR services
- Digital and data asset loss, including the cost of repair, restoration or replacement
- Business interruption cover, providing income protection while your system is down
- Defence costs, civil fines and penalties, where they are insurable by law
Employers’ Liability covers injury to your employees, with Public Liability covering both injury and property damage claims from third parties, outside of those listed above.
What does it cover?
- Bodily injury
- Personal injury (such as through defamation or slander)
- Property damage
- Legal defence.
Most companies are legally required to hold Employers’ Liability and almost no companies operate without Public Liability.
We can combine some elements of these into a package, with a single renewal date to reduce your administrative burden and create a single contact point for all of your insurances
Frequently asked questions
You may have patients overseas or employees working remotely, which means you could be summoned to face a claim anywhere in the world. We can adapt your policy to fit your global footprint so that your insurance is ready to respond, wherever you need it.
As a leading independent insurance broker, we’re free to choose from a wide range of providers, to create the most comprehensive and suitable policy for you. Howden has established partnerships with some of the world’s leading providers of Medical Insurance underwriting and risk management services. We only use minimum A-rated insurers with experience of the unique complexities of the medico-legal industry. All claims are handled with the utmost professionalism by trusted and experienced staff with in-depth knowledge of the field.
In short, yes. eHealth is very much focused on communication technologies for healthcare purposes. Digital health includes (mHealth) apps, electronic medical records, wearable devices and telemedicine, it is a term used to describe the transformation of technology for healthcare. The scope of cover however required by both is very similar.
Many Healthcare businesses will sit across both the healthcare and technology sectors. Digital health insurance offers protection for Healthcare businesses using technology and digital devices to provide services. Risks are varied from the failure of a healthcare device or App that leads to body injury to hackers and cybercriminals who may look to manipulate Apps and AI systems, and many other risks.
Business that use Digital Health platforms and technologies, would be considered a digital health business. There is a wide range of such technologies, from GP services and general wellness Services, to diagnostic and medical products (drugs, wearables and devices), through to research and development trials to develop or study medical products.
Any business in the digital space is exposed to Cybercrime, particularly, Ransomware, Hacking and Malware incidents, medical or health business may not be as familiar with technology errors & omissions and cyber risks. Technology businesses in this area may not be as familiar with the exposure to medical malpractice type claims or incidents.
Businesses in this area whether medical, health or technology have a total reliance on digital platforms and technology which means they are a more attractive target to cyber criminals.