Coverys subsidiary ProSelect Insurance Company will launch a new medical professional liability program on March 1, 2021 targeting dental professional liability. The carrier’s program is set to launch in California, tapping competitor CNA’s existing dental program effective as of Nov. 1, 2017, in the Golden State for its rates and increased limit factors. The program will also include ProSelect’s Cyber Liability and Protection Plus product as an automatic coverage for insureds. Limits for ProSelect’s dental program will start at $100,000/$300,00 and will range up to $1 million/$3 million.
Endorsement options for this product will include coverage for locum tenens, limited coverage, exclusion of procedure, solely owned corporation exclusion, employee limit of liability, and prior acts, among several others. Expansion endorsements for increased limits and reportion period extensions for the program’s cyber coverage will also be available. As the program was developed in direct response to a competitor, Coverys is likely to be aggressive with underwriting and pursuing new accounts, the carrier will be keen to avoid insureds with adverse claims histories.
Covery’s dental program expansion follows increased competition within the dental segment, which saw several rate hikes last year which can be expected from most carriers as 2021 continues. Expect these rate hikes in the 2nd quarter of 202 as profitability continues to be tight within most medical professional liability segments. CNA previously introduced a 7 percent rate hike through subsidiary American Casualty Company of Reading, Pennsylvania in Texas last year in July. Expect higher limit accounts to also be popular. The Doctors Company gained approval in the 2nd quarter of 2020 to offer increased limit tiers in New Jersey of $3 million/$6 million, $4 million/$6 million, and $5 million/$8 million, and could continue this expansion of limits as 2021 continues.
Additionally, expect new endorsements related to COVID-19 to continue impact the industry. The Dentists Insurance (TDIC) will introduce a new endorsement in California, with an effective retroactive date of Jan. 1, 2021, if granted approval. This endorsement, dubbed the COVID-19 Vaccination Endorsement, was developed in response to recent changes to the Business & Professional code which has allowed for dentists to administer vaccines for COVID-19.
This endorsement will thus remove a relevant exclusion to allow for coverage related to the administering of related vaccines to patients who are not patients of an insured’s dental practice, provided it was authorized by the FDA, thus redefining the terms of “professional service” under the policy. As the demand for COVID-19 vaccinations grows once availability becomes more widespread, expect similar endorsements as carriers will be keen to provide some kind of coverage or terms related to this new exposure. TDIC will provide this endorsement automatically with no extra premium and is aiming to see the filing expedited so that it will go into effect as soon as possible. However, should insurers determine that a relevant exposure potential exists from an influx of administering of COVID-19 vaccines, the potential does exist for endorsements that provide a premium charge to insureds for carriers that are worried about costly claims.
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