Mitigating Emerging Risks in Healthcare: Key Lessons for the Future 

With new technology and varying patient expectations, the healthcare industry is evolving rapidly. However, progress comes with risks. According to insights from the U.S., U.K., and Singapore, there are critical challenges such as nuclear verdicts, batch claims, cybersecurity threats, and AI integration. Here’s how healthcare providers can manage these risks effectively: 

Legal Risks 

Part of the rising legal risks that healthcare providers face are “nuclear verdicts”, which are lawsuits resulting in settlements over $10 million. Just recently, a U.S. case involving delayed care led to a $183 million payout. What’s driving this trend? Keep reading: 

• Due to media exposure, public perception of fair compensation is rising.  
• Private investors fund lawsuits, pushing for higher settlements.  
• Healthcare organizations, especially for-profit entities, face greater scrutiny.  

And here’s how you can mitigate these risks:  

• Review patient safety protocols. 
• Monitor policy limits to align with rising jury awards. 
• Assess “nuclear verdict” exposure with an experienced broker.  

AI & Robotics 

The use of AI and robotics is revolutionizing healthcare. However, they also introduce new risks, such as:  

• AI depends on historical data. This can often lead to biases and, therefore, misdiagnoses.  
• Malfunctions and equipment failures can lead to potential claims. 
• Confusion about whether your cyber insurance or medical malpractice policies would cover such AI incidents.  

To mitigate these risks, you can:  

• Regularly review and update insurance policies to ensure the inclusion of AI-related risks.  
• Train teammates for safe AI usage.  
• Ensure human oversight for all AI-driven processes. 

Cybersecurity: Protecting Critical Data 

Cyberattacks are almost trending, especially in healthcare. U.S. hospitals reported an increase in ransomware attacks in the post-COVID era, which compromised sensitive patient records.  

To mitigate these risks, you can: 

• Implement strong cybersecurity measures and conduct regular audits. 
• Secure robust cyber coverage tailored to your risks.  
• Educate staff on how to identify a cyberattack, AND how to prevent it.  

Reputation & Communication 

If you’re well acquainted with your customers and always make sure to keep a channel for effective communication, you are already halfway to preventing claims. According to the report, in Singapore, training doctors to express empathy has reduced legal claims (for real). 

Therefore: 

• Train staff for empathetic communication.  
• Develop protocols for managing patient complaints swiftly.  
• Prioritize transparency, patient engagement, and patients. 

Tailored Insurance Solutions 

As risks change over time, so should your insurance policies. Healthcare providers must work closely with experienced brokers to ensure that they have comprehensive coverage for AI, cybersecurity, and legal risks.  

You can also try and mitigate risks by:  

• Review your policy regularly, as well as its wording, to identify gaps.  
• Check if your coverage limits are adequate for your risk exposure.  
• Stay updated on growing risks and threats.  

In the end, more than insurance, safety is about addressing emerging risks and mitigating them. With proactive strategies and working with experienced brokers, practitioners can easily work through these challenges effectively, all while protecting their reputation and safeguarding patient data.  

For expert advice, contact Shayne Bevilacqua at Professional Liability Insurance Group.  
Call or Text us at +1 (877) PLIG – 123, That’s (877) 754 – 4123.