In our increasingly litigious culture, the healthcare industry has become a popular target for lawsuits. What once may have been considered an innocent oversight or small grievance can now be leveraged into a lucrative payday. More than one in three physicians face a medical liability lawsuit at some point in their careers, but doctors aren’t the only ones at risk. Allied health professionals — who range from home health aides to mental health counselors to medi spa practitioners — are also at high risk of litigation. According to the National Practitioner Data Bank (NPDB), of all the medical malpractice payments made from 2012 to 2022, 26% were from non-physicians.
Let’s look at the top five lawsuit triggers for allied health providers.
Trigger 1: Negligence in Patient Care
At an adult day care center, a staff member neglects to properly supervise an elderly participant with mobility issues. As a result, the participant falls and sustains serious injuries, prompting the family to file a negligence lawsuit.
Negligence claims can stem from a failure to provide adequate supervision, lapses in patient care, or failure to follow safety protocols. In allied health settings such as adult day care, negligence can be as simple as the above scenario — failing to prevent a fall. These claims often involve financial and reputational damage for providers, making it crucial that they have the right protection.
- Professional liability covers legal fees and settlements if your covered client’s negligence leads to injury or harm.
- General liability protects against claims resulting from injuries on the provider’s premises, such as slip-and-fall incidents.
Trigger 2: Breach of Confidentiality
At an outpatient rehabilitation center, a staff member inadvertently shares patient information in an email sent to the wrong recipient. The patient, concerned about the disclosure of their sensitive health information, sues the center for violating confidentiality.
Confidentiality breaches are a serious issue in healthcare, where personal private information may include medical diagnoses and treatment details in addition to sensitive financial and identity information. For providers working in outpatient facilities, mistakes like sharing personal health information with unauthorized parties can result in significant legal action.
- Professional liability helps cover legal defense costs and potential monetary settlements and fines related to confidentiality breaches, including violating privacy laws like HIPAA.
Trigger 3: Sexual Abuse or Misconduct Allegations
A patient at a medspa accuses a staff member of inappropriate behavior during a procedure. Although the claim is disputed, the patient files a lawsuit against the employee and the facility.
Sexual misconduct allegations can cause irreversible damage to a healthcare provider’s reputation, regardless of the outcome. For Medispas and other allied health services where staff interact closely with patients, these allegations can be devastating, resulting in high legal costs and settlements, even if proven false.
- Sexual abuse (molestation) liability covers the cost of legal defense and potential settlements in cases involving allegations of sexual misconduct.
Trigger 4: Employee Theft
A home health aide is discovered stealing prescription medications from a patient’s home. The family sues both the aide and the home health company for failing to supervise their employee adequately.
Employee theft can have severe legal and financial consequences for allied healthcare providers, especially involving vulnerable populations. For home health companies, theft of personal belongings or medications results in a loss of trust and can lead to costly legal action.
- Employee theft liability covers losses resulting from employee theft, including legal settlements if the provider is held responsible for inadequate supervision.
Trigger 5: Auto-Related Incidents
An employee at an urgent care clinic uses their personal vehicle to transport medical supplies and is involved in an accident. The other driver sues the clinic, claiming the employee was performing work-related tasks during the accident.
Auto-related incidents are often overlooked in allied healthcare liability discussions, but they can pose significant risks when employees use personal vehicles for work. Whether running errands, transporting samples, or moving between patient locations, these activities expose the employer to potential issues.
- Hired and non-owned auto liability protects your clients when employees use personal or rented vehicles for work, covering bodily injury and property damage claims.
MiniCo: Trusted Experts in Allied Health Insurance Solutions
With healthcare litigation on the rise and nuclear verdicts becoming more common, there’s never been a better time to revisit your allied health book of business. MiniCo’s exclusive Allied Health Insurance program offers the liability coverages and underwriting expertise your clients need for financial and reputational protection and peace of mind. Get coverage details, submission requirements, and more on our website – or contact us to speak with an experienced program underwriter.
