ACE advisory examines management liability risks for healthcare industry


ACE has released a new advisory paper detailing the increase in liability risk as government agencies use the False Claims Act (FCA) to aggressively enforce complex regulations that govern insurance programs.

Entitled, ‘Managing the Growing Risk of FCA Liabilities’, the paper emphasizes the need for health care organizations to take proactive steps to address this evolving exposure.

Co-authored by Keith Lavigne, senior vice president, ACE USA professional risk, and Scott Williams, assistant vice president, ACE USA professional risk, the paper is the second in a series of papers developed by ACE to highlight the increased exposures faced by health care organizations.

“Billions of dollars have been collected under the FCA via a multitude of actions brought directly and indirectly by government agencies,” says Lavigne. “The cost of an FCA action can go beyond damages and penalties. Senior executives can face criminal charges, and the publicity can harm an organization’s credibility and reputation. These costs can take a serious toll, even putting an organization’s future into question.”

“As part of their risk management strategy, providers need to understand the importance of a comprehensive insurance program and how insurance can help them work through the difficulties of FCA related matters,” adds Williams.

He concludes, “Management liability insurance policies, specifically D&O policies, typically provide some level of protection against FCA liability, but it is essential that health care organizations ensure they have explicit and state-of-the-art coverage.”

You can read the full report on the ACE Group website here.

ACE, advisory paper, liability risk, FCA, Managing the Growing Risk of FCA Liabilities, Keith Lavigne,Scott Williams

Bermuda Re