Digital health services, including telemedicine and telehealth, have become an integral part of patient care, enhancing access and efficiency. Not surprisingly, with these advancements come risks concerning patient diagnosis, treatment and data privacy. While many risks found with in-person care settings apply, virtual care settings expose healthcare providers to additional liabilities, such as allegations of violating the standard of care, navigating multi-jurisdictional regulations and technology failures.
In a virtual setting, poor technical quality could impair communication between a provider and patient. If a third-party telehealth platform fails, both the platform provider and the healthcare provider using it may face liability claims.
According to QBE's Digital Health Insurance Report, which surveyed insurance brokers specializing in healthcare liability, 63% reported that their health care clients are either extremely or very concerned about digital health risks. These risks include inadequate care (cited by 44% of respondents), technology and product errors (41%), and cybersecurity breaches (38%).
Need for Deeper Conversations
Despite the availability of customized coverage, 30% of healthcare clients were unaware additional coverage existed and thus did not purchase it, brokers reported. Consequently, more than eight in 10 brokers (84%) are concerned that some clients may be operating their business without the appropriate coverage for digital health services. This could stem from various factors, such as changes in a client's business model or an expansion of their geographic footprint to provide services in different states. Meanwhile, claims related to digital health services have risen over the last year, with 60% of brokers noting an increase.
Given the increase in claims filed, deeper engagement between brokers, carriers and clients is needed. The survey findings highlight the importance of raising awareness about the inherent risks of digital health services and educating health care providers about potential liability coverage gaps. 50% of brokers say their clients are interested in more information when informed that they may need to update their policies, and 27% say their clients want to purchase additional coverage.
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Bridging Digital and Traditional Coverage
As the landscape of healthcare evolves with increasing digital service integration, insurance providers are adapting with innovative coverage options. Some insurers offer branded digital health packages, while others adapt traditional coverage to include digital settings. A notable strategy is the hybrid approach, which combines traditional coverage models with flexible, tailored solutions for digital health.
This hybrid strategy starts with a professional liability basis applicable to both brick-and-mortar and digital operations. Insurers then augment this with additional coverages on an a la carte basis, facilitating seamless integration and reducing the need for policy rewrites as operations evolve. This model is advantageous as healthcare entities increasingly navigate between physical and digital realms, offering a comprehensive package that covers all liabilities thoroughly.
A key benefit of the hybrid approach is its ability to bridge gaps introduced by traditional insurance silos. For instance, while cyber policies might focus on financial loss, the healthcare professional liability aspect concentrates on bodily injury. This model aims to cover bodily injuries resulting from cyber and technology incidents—risks that might be overlooked in less integrated approaches. By coordinating coverage across different types of risks with a single carrier, or at least explicitly acknowledging expressed coverage for these risks, the hybrid approach minimizes uncertainties and disputes when claims arise, leading to better outcomes for all parties involved.
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Closing the Gap
Despite these advancements, a significant gap remains in the awareness and adoption of comprehensive digital health coverage. Currently, brokers report that among the healthcare professional coverage of their clients, only 51% of the policies include expressed coverage for digital health services. However, with the growing recognition of digital health risks and the expanding scope of these services, a substantial increase in demand for tailored insurance solutions is anticipated.
As understanding of digital health risks improves and scope of these services expands, 68% of brokers anticipate an increase in demand for digital health services coverage. In this ever-evolving risk landscape, it is imperative for brokers and carriers to collaborate more effectively with clients in crafting optimal insurance solutions. This process begins by educating clients on the potential risks associated with digital health services and clearly explaining the various types of available insurance coverage.
