Healthcare Professional Liability Market Update

COVID-19 will likely accelerate this already hardening marketplace.


As the market changes, what do we know, what should you know, and what is IMA committed to do?


Healthcare Professional Liability Market Update – COVID-19

Although it is impossible to know, at this point, the full extent of COVID-19’s impact on the insurance marketplace, we do know that there are already significant changes that are impacting healthcare facilities and providers. After more than ten years of a softening marketplace, healthcare professional liability carriers began in late 2019 to respond to higher claim frequency and severity, inadequate rates and a shrinking customer base. COVID-19 will likely accelerate this already hardening marketplace.

What We Know Now

Several notable Healthcare Professional Liability Insurers have already closed their doors for new business for Senior Living. These include Chubb, Lloyds (most syndicates), and Hiscox. The market was already thin for this sector of healthcare with premiums skyrocketing

Some insurers that are accepting new businesses are attaching a COVID Exclusion or a Communicable Disease exclusion.

Most insurers are asking questions related to COVID-19, and some are requiring a COVID-19 supplemental application before even quoting a risk. Among these carriers is the Mental Health Risk Retention Group.

The premium increases will be seen by all sectors of the Healthcare industry, although hospitals and senior living facilities will be among the hardest hit.

Many insurers are waiving and/or deferring premiums during this time, particularly for providers and facilities who perform only elective procedures. This deferral could push carriers to introduce further increases down the road.

Healthcare Professional Liability Market Update

What Should You Do?

Work with an insurance broker who knows the industry and the marketplace on your PL renewals

Start early: 90 to 120 days out!

Develop your marketing plan and be prepared for potential increases. In a marketplace such as this, we have seen that the incumbent carrier is often the best option. A qualified broker can navigate that process on your behalf.

Be prepared to provide more information than ever before. This may include COVID-19 supplemental applications. Several are available here for your review.

As the next 60-90 days will be the most challenging for renewals, it might be worth requesting an extension if the carrier is willing to grant it.

In consultation with your insurance broker, you should report any COVID-19 related incidents in which you may have liability, including residents, patients or employees who have tested positive, are suspected of having COVID-19, or have potentially been exposed.

What is IMA Committed To Do?

Keep our clients abreast of ongoing marketplace changes

Monitor legislation that could grant immunity to healthcare facilities and workers treating COVID-19 patients

This material is for general information only and should not be considered as a substitute for legal, medical, tax and/or actuarial advice. Contact the appropriate professional counsel for such matters. These materials are not exhaustive and are subject to possible changes in applicable laws, rules, and regulations and their interpretations.