Insurance for Disease, Disorders & Medical Disciplines Organizations

Protecting Organizations Advancing Medical Research & Patient Care

Nonprofits that focus on disease research, medical disciplines, and patient support provide critical services to those in need. Whether funding research, advocating for patients, or providing direct medical care, these organizations face unique liability risks that require specialized insurance protection.

Key Risks for Disease, Disorders & Medical Disciplines Organizations

• Medical Malpractice Claims: Organizations offering medical services or advice may face allegations of negligence or improper care.

• Regulatory Compliance Issues: Nonprofits working in healthcare must navigate strict regulations, including HIPAA and FDA compliance.

• Data Breaches & Cybersecurity Threats: Storing medical records and patient information makes organizations vulnerable to cyber threats.

• Liability from Fundraising Events: Charity walks, medical conferences, and other events may expose organizations to liability claims.

• Board & Leadership Risks: Financial oversight, governance decisions, and employment-related disputes can lead to lawsuits.

Core Insurance Coverages for Disease, Disorders & Medical Disciplines Organizations

To protect against these risks, organizations in this sector should carry the following essential coverages:

1. Professional Liability (Medical Malpractice) Insurance

Protects against claims of errors, negligence, or omissions in medical care, counseling, or research activities.

2. General Liability Insurance

Covers third-party claims of bodily injury or property damage at offices, events, or during outreach activities.

3. Directors & Officers (D&O) Insurance

Provides protection for board members and executives facing lawsuits related to governance, financial decisions, or organizational management.

4. Cyber Liability Insurance

Protects against data breaches, hacking, and the legal costs associated with compromised patient or donor information.

5. Workers’ Compensation Insurance

Covers medical expenses and lost wages for employees injured while performing their duties.

6. Event Liability Insurance

Provides coverage for liability claims arising from charity walks, health fairs, and fundraising events.

Additional Coverages to Consider

While core coverages provide essential protection, disease and medical nonprofits may also benefit from:

• Research & Development Liability Insurance: Protects against claims related to medical research and clinical trials.

• Product Liability Insurance: Covers liability for organizations distributing medical supplies, pharmaceuticals, or wellness products.

Key Considerations for Disease, Disorders & Medical Disciplines Insurance

1. Bundling Fiduciary Liability and EPLI with Your D&O Insurance

Many organizations bundle Fiduciary Liability (protecting against mismanagement of employee benefit plans) and Employment Practices Liability Insurance (EPLI) (covering wrongful employment practices) within their D&O policy for cost savings and enhanced protection.

2. Understanding the Difference Between Professional & Management Liability

• Professional Liability covers claims related to medical care, counseling, or patient advocacy.

• Management Liability covers leadership decisions, governance, and employment-related risks.

3. Covering Volunteers for Workplace Accidents

Volunteers assisting in healthcare settings or fundraising events may not be covered under workers’ compensation. Volunteer Accident Insurance ensures they receive medical care if injured.

Frequently Asked Questions (FAQ)

Q: Why do medical and disease-focused nonprofits need specialized insurance?
A: These organizations often provide direct care, research, and advocacy, making them vulnerable to malpractice claims, regulatory fines, and liability lawsuits.

Q: Does general liability insurance cover medical malpractice claims?
A: No, Professional Liability (Malpractice) Insurance is needed to cover claims related to errors in medical care or research.

Q: How can we reduce insurance costs?
A: Bundling key coverages like D&O, Fiduciary, and EPLI can lower costs while ensuring broad protection.

Q: What happens if patient data is compromised?
A: Cyber Liability Insurance covers legal expenses, notification costs, and fines related to data breaches.

Q: Do volunteers need their own insurance?
A: No, but Volunteer Accident Insurance ensures they receive medical care if injured while supporting your organization.