New Insurance Product Covers Exposure to Health Fraud Cases
Posted 05 March 2012 | By
Worried about your exposure to healthcare fraud? A new product is looking to protect employees at pharmaceutical, biotech and medical device companies-among others-that are worried about being the subject of health fraud investigation and subsequent action under the Park Doctrine, writes the Philadelphia Inquirer.
The Park Doctrine holds that executives who fail to act in accordance with their responsibilities can be held personally responsible for fraud perpetrated in their respective unit or company.
The insurance product, sold by Marsh and Allied World Assurance Co., specifically seeks to protect corporate officers without knowledge of any "deliberate criminal conduct."
"If someone pleads guilty to a misdemeanor with little to no evidence that they engaged in deliberate criminal conduct, there is a strong argument that this person deserves coverage," said Steve Shappell, a managing director with Aon Corp. and leader of the insurer's legal and claims practice within the financial-services group.
Philadelphia Inquirer - Insurance offered to cover health executives in fraud cases