Insurance for healthcare facilities
These 3 critical areas are most often underinsured: Claims from injured patients, outdated medical technology or poor building conditions, and the consequences of incorrect decisions from the highest levels.
Healthcare Facility Insurance
PROFESSIONAL LIABILITY INSURANCE PROTECTS YOU IF PATIENTS SUFFER HARM DURING TREATMENT
This is a very sensitive topic that should concern you for the following reasons:
- Unlike in the past, today patients are much more informedabout what they can claim in case of harm – and they do.
- The market is reacting to the increasingly frequent claims from injured patients, with the result that these policies are now becoming significantly more expensive.
- The occurrence of harm caused by treatment is enormously contributed to by the chronic overload of doctors. (Due to a shortage of staff, the situation will be very difficult to improve.)
- It's not just about health damages; it's also possible to successfully claim compensation for psychological harm (which the new Civil Code allows).
PROPERTY AND MACHINERY INSURANCE: INSURE YOURSELF AGAINST THE RAVAGES OF TIME AND THE PRYING FINGERS OF HACKERS
This insurance segment includes:
- Property: If your hospital or other healthcare facility is located in an old building that sustains damage, you are legally required to reconstruct it according to new standards. This usually makes new construction astronomically expensive, yet hospitals often don't have this insured at all!
- Medical equipment, which typically costs tens of millions and whose price constantly changes over time – always upwards. Whether due to fluctuations in the dollar or euro, or a shortage of equipment on the market. Therefore, it pays to insure new or nearly new equipment while there's still time (a strict legal exclusion states that medical technology older than 5 years cannot be insured).
- Operating Systems, on which older devices run, are often hopelessly outdated. There are no patches for them, even though they are connected to hospital information systems. This makes them the most vulnerable point and practically invites hacker attacks (which every hospital fends off several times a day). It's not just about data breaches – if, God forbid, a patient dies due to a hacker attack, you can expect a lawsuit from the bereaved. (In this case, property insurance overlaps with professional liability insurance and, last but not least, with Cyber risk insurance; it's a typical example of risk cascading).
- Machinery Insurance (with an extension for electronics).
SLEEP BETTER WITH MANAGEMENT LIABILITY INSURANCE
If there is damage to property or human health or lives due to a faulty management decision, the devastating consequences can affect not only the hospital but also the lives of specific individuals – perhaps even your own.
This type of damage is covered by management liability insurance (you might know it by the acronym D&O Insurance). In this case, it's crucial to be perfectly adept at navigating the complex world of insurance laws, decrees, amendments, and other legal matters.
HOW EUROVALLEY HELPS: WE WILL WORK WITH YOU TO IDENTIFY RISKS AND OFFER THE BEST POSSIBLE TERMS
In our experience, institutions are most often prevented from covering all the aforementioned risks by insufficient limits of insurance coverage. It usually pays to opt for limits in the millions or tens of millions of Czech crowns. However, this significantly increases the cost of insurance.
To ensure your hospital doesn't pay more for insurance than necessary, while also having all risks covered individually tailored to its situation, we proceed as follows: First, we examine the hospital's risk profile specifically, the medical specializations and challenges faced by that particular hospital.
At Eurovalley, when designing insurance, we use what is called risk layering: we insure complementary layers of risk, set limits, and based on an analysis of claims by frequency and amount, we computer-model the optimal deductible setting for the hospital.
WHAT NEXT?
If you've read this far, you've probably identified several areas for improvement that your institution's current insurance might still contain.
In that case, there's a simple solution: Contact us. We will then prepare for you non-binding offer, how to improve your situation and protect both you and your institution from all conceivable adverse scenarios that the future might have in store for you.
It's entirely up to you whether you want to find out, knowing that – whether these scenarios occur or not – both you and your institution will be prepared for them.
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Effective insurance starts with understanding risks. We help clients identify, assess, and manage risks so that their insurance strategy aligns with their real-world operations and long-term vision. Our insurance consulting connects detailed analysis with executive-level decision-making processes.
