Independent Sales Reps & Distributors 

Welcome to the HSMN Message Boards!
Please refrain from posting offensive messages as well as commercial advertising, solicitation and recruiting - such messages will be deleted by the forum moderators.

Goto Thread: PreviousNext
Goto: ForumsTopic ListPost New TopicLog In
Liability Insurance (E&O)
Posted by: MedDist (Host IP Logged)
Date: October 16, 2009 09:04PM

Does anyone have a good company that they use for general liability insurance for medical sales professionals? (Rates?) I hear that this is now becoming the 'norm' in regards to hospital credentialing and would like to protect my personal/professional assets - thanks in advance

Re: Liability Insurance (E&O)
Posted by: Timothy Edwards (Host IP Logged)
Date: July 11, 2010 11:16PM

Yes, We have a special insurance program providing liability coverage for medical device reps. Tim Edwards www.redlionins.com

Re: Liability Insurance (E&O)
Posted by: Bernie (Host IP Logged)
Date: August 24, 2010 01:00AM

Umbrella coverage added to your homeowners insurance will do the same thing -

Re: Liability Insurance (E&O)
Posted by: Kelley (Host IP Logged)
Date: August 28, 2010 10:43AM

Bernie,

Can you use an umbrella policy work if your company is an LLC?

Re: Liability Insurance (E&O)
Posted by: Bernie (Host IP Logged)
Date: August 28, 2010 07:24PM

If you have an LLC -basically which functions as a pass through -meaning you are the only member of the LLC- the LLC functions to limit your liability- hat's its purpose - Only instances where you would need E&O, from ,my experience, would be those who actually have a license to practice in a profession such as a nurse who is actually functioning as such in some capacity for the LLC- would need liability
If you represent a manufacturer -you should have a hold harmless clause in your contract -that you are held harmless in the event of any legal action against the manufacturer of the medical products

My opinions from being in the business -not legal advice -(have been in the health care admin business for 20 years)


Bernie Wrote:
-------------------------------------------------------
> Umbrella coverage added to your homeowners
> insurance will do the same thing -

Re: Liability Insurance (E&O)
Posted by: Timothy Edwards (Host IP Logged)
Date: January 19, 2011 07:20PM

As an insurance professional for over three decades it worries me when I hear of people trying to rely on insurance policies that will not respond when they are in need.

A personal umbrella policy does not provide insurance for professional activities. Business activities are EXCLUDED from personal coverage.

Hold Harmless agreements typically provide the rep with protection from any claim resulting from a product failure. Typically they do not hold harmless the rep from any "error or omission" (E&O) resulting from the advice the rep gives.
That said each agreement is different.We review them regularly for reps at no charge to help determine their exposures.
In all cases the device company will not hold the rep harmless for poor advice, over promotion or going off label. This is down to the rep.

When in the OR the doctor is in charge. Reps have no control over what the Doctor does. Does the Doctor carry enough insurance to provide for al lifetime of care to an injured patient? If something goes twrong the patients attorney will go after everybody who was in the room including the rep in order to collect money to pay for the necessary care.

We have seen too many instances of the rep not having the proper insurance ending up with a significantly reduced lifestyle as a result...whether the
rep has an LLC or not.

The proper E&O insurance provideslegal defense for the rep and will settle damages whether the rep is culpable or not.
Reps work hard to build their business and enjoy its rewards. Having the proper insurance in place for a few dollars a month is far more preferable than losing everything because of a legal action whether spurious or not.

Further the medical centers seek the rep to have general liability insurance and appoint the credentialers to chack for this. The prupose is to protect the medical center in the vent the rep damages any piece of the medical centers expensive equipment. In spite of its name, General Liability is limited as it does not cover damages from "your work" Whereas E&O insurance does.

To have confidence in their insurance protection a rep should carry both. This can be done at modest cost. After all if you are going to spend money on insurance it should be the right insurance that will respond when you need it to.

The only way to obtain proper protection is through dedicated icommercial insurance policy issued exclusively to the rep and his LLC. the only avenue to this is through a professional insurance broker.

Timothy Edwards
www.redlionins.com

Liability Insurance (E&O)
Posted by: Helen G (Host IP Logged)
Date: September 12, 2011 07:44AM

Mr. Edwards is correct.

My insurance company informs me that if I have a business, if a sell a product, etc. the umbrella policy will not cover.

Re: Liability Insurance (E&O)
Posted by: Jo Wanna (Host IP Logged)
Date: May 16, 2017 01:45AM

this seems to be worth checking out coveradvantage.ca