ProAssurance Indemnity Company, Inc., introduced two new endorsements on April 1, targeting independent contractors. These endorsements are new and will be intended for use with the carrier’s Healthcare Professional Liability Program, as well as for use with its Ob-Gyn and MDVIP purchasing groups. ProAssurance will aim to bring these new coverage options to New Jersey.
These endorsements are restricting in nature, aimed at limiting any and all coverage or indemnity for liability resulting in professional services rendered by employees or independent contractors or entities not named in the endorsements.
These endorsements come in two variants, both dubbed the Healthcare Professional Liability Policy Restrictive Endorsement (Scope of Duties). One endorsement allows for coverage from named entities and professionals, while the other allows for coverage under certain conditions that specify the scope of duties and role of the independent contractor and entity.
The addition of these endorsements is likely designed to limit ProAssurance’s overall exposure due to the increased reliance of independent contractors within the healthcare segment, particularly in the wake of COVID-19, and will serve to better clarify the carrier’s intentions when it comes to liability coverage. These endorsements will also be utilized by ProAssurance Casualty Company. Both are available for new and renewal business.
Watch for similar endorsements to hit the market in the coming months. While exposures have been on the downturn as a result of COVID-19 protocols, with more healthcare facilities leaning on telemedicine alternatives, the eventual vaccine rollout will likely lead to more facilities and physicians slowly accepting more in person visits back into the routine, and as such, carriers will be apt to keep a close eye on past and potential claims to limit overhead.
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