Captive Insurance for Healthcare Providers

Captive Insurance for Physicians

Captive Insurance News for Physicians

Captive Insurance for Physicians: Addressing Industry Risks

Privately-owned healthcare organizations are contending with emerging risks as they navigate new guidelines associated with the Affordable Care Act, commonly referred to as ‘Obamacare.’ Changing regulatory requirements, payer audit liability, violent incidents, environmental pollution, and even cyber risks are front-and-center as physicians develop their risk mitigation strategies.

Physicians and other healthcare professionals in the private sector are realizing just how critical risk funding has become as new technologies and vulnerabilities develop.

With the formation of a captive insurance company, owners of closely-held businesses, including private practices, can cover risks that are not covered or too expensive in the commercial markets. Both traditional and emerging risks can be addressed by broader, more inclusive coverages, filling gaps that exist within existing insurance policies. In addition, captives offer significant planning benefits, such as a tax-favorable premium model, secured loans, and dividends (when undistributed earned surplus exists to support them). Without a doubt, captive insurance for physicians is becoming a critical part of a larger risk management strategy as the regulatory landscape continues to evolve.

Pollution InsuranceDetailed coverage samples:

Payer audit liability. Coverage to protect the insured against a significant and unexpected "adverse final resolution" if the medical services billed are challenged.

Breach of medical records. Coverage that protects insureds from additional expenses from claims made because patient privacy requirements were not maintained. Claims could be the result of a violation of federal HIPAA requirements, state regulations or civil lawsuits.

Breach of medical standards. Claims could be the result of a medical review board, or government entity.

Medical malpractice gap. This expands medical malpractice coverage by buying back certain coverages that are excluded from or limited by current underlying insurance policies.

Commercial chiropractic malpractice gap. Expands commercial chiropractic malpractice coverage by buying back certain coverages that are excluded from or limited by the insured’s current underlying insurance policies.

Legal expense reimbursement. Coverage to reimburse for legal expenses incurred when there is no underlying insurance to provide defense or if defense expenses have been exhausted, or if the insured challenges the primary insurer’s failure to defend a claim or cover a judgment.

Specialized coverages are an attractive feature of captive insurance companies for physicians. For example, environmental insurance policies offer coverage for a variety of pollution exposures, while reducing potential coverage gaps found in general liability policies.

To learn more about captive insurance for physicians, please contact Capstone at WEB_TEL.


Exclusions Could Lead to Lawsuits
December 28, 2015 (Houston, TX) – Many commercial insurance policies fail to cover all the risks that a private practice might have. The industry publication Risk & Insurance reports about the potential blowback.

States Leading in Employment Litigation Lawsuits
December 24, 2015 (Houston, TX) - Malpractice, environmental mishaps, legal matters—all of these risks and more have been known to wreak havoc on the healthcare industry. See what states lead in employment litigation lawsuits in this report.

Tax Issues: U.S. Sides with Tax-Avoiding Companies
December 24, 2015 (Houston, TX) - Small and midsized businesses are experiencing a spike in employment practice lawsuits. The question becomes, why aren’t more businesses opting for insurance coverage? Inside, you’ll get quick info on the true cost of being underinsured.

Low Chance of an IRS Audit
March 3, 2015 (Houston, TX) – Due to a lack of funding, the Internal Revenue Service has experienced a sharp decline in the number of people it employs. In parallel, audits have also declined for small and mid-sized organizations. Get the story.

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