Posts in June 2021
Litigated claims could impact reputation and market share in ways no policy can cover. Here’s how proactive risk mitigation reduces the expense.
By: The Hartford | June 1, 2021
White Paper Summary
Product liability claims in the life sciences industry are unique. In many cases, the products in question make a direct impact on consumers’ health. When they don’t perform as intended or cause an injury, the consequences can be severe. Especially in the context of social inflation, product liability claims can potentially cost life sciences companies millions.
What many in the industry don’t realize is that a portion of these costs can’t be recouped from a product liability policy.
“These unexpected costs can be categorized as immediate or deferred costs. Immediate costs would include additional legal costs to respond to heightened regulatory scrutiny incurred after a claim. It also includes losses absorbed in attempts to restore reputation. Companies may need to offer discounts or refunds, for example, to retain existing business, which may not be reimbursable damages under a customary insurance policy,” said Tom Morelli, Claims Representative in The Hartford’s Major Case Unit.
The COVID-19 pandemic has made an already-hardening insurance market in the health care sector even harder.
By: Maura Keller | June 7, 2021
The COVID-19 pandemic has wreaked havoc on all segments of the health care industry, including the medical malpractice market, which has continued to harden over the last 12 months.
As a result, the past year has seen prices, exclusions and limitations increase and capacity reduce, in part because some carriers left the market. The pandemic also placed tremendous pressure on hospitals, health care providers and long-term care facilities.
“The industry anticipates that, in addition to inevitable claims arising from the spread, diagnosis and treatment of COVID-19, there will be claims arising from the pandemic’s impact upon the availability of health care and health care resources, such as claims resulting from the delay or cancellation of procedures deemed elective,” said Dennis Cook, senior underwriting executive, IronHealth, Liberty Mutual.
“The anticipation of these indirect COVID-19 claims has added to the hardening of the market.”