Cosantoir: Regulatory Liability Coverage for Healthcare Companies
Learn how your organization can benefit from Cosantoir, a new insurance policy designed to provide healthcare organizations with a more powerful and effective risk transfer solution for regulatory liability in the United States.
What is Cosantoir?
Cosantoir is a new insurance policy designed to provide healthcare organizations with a more powerful and effective risk transfer solution for regulatory liability in the United States.
Developed over a two-year period by Aon, in conjunction with leading defense law firms and insurance trading partners, Cosantoir stands apart from other policy options currently in the market due to its $50 million limit and coverage of defense and indemnity costs whether an organization settles out of court or goes to trial.
Today, by virtue of our role in developing this innovative solution for healthcare companies, Aon is the exclusive broker for Cosantoir policies.
Why is Regulatory Liability a Continuing Risk for Healthcare Companies?
As the United States government ramps up enforcement of the False Claims Act, Stark Act and various anti-kickback statutes, regulatory liability continues to be a significant risk for healthcare organizations. In 2021, the US government obtained $5.6 billion in settlements pursuant to these laws, followed by another $2.2 billion in settlements in 2022.
Importantly, in 2022, more than $1.9 billion in settlements arose from lawsuits filed under the qui tam provisions of the False Claims Act, which allows both the government and whistleblowers to file suit. This resulted in payments totaling $488 million to individuals who exposed fraud and false claims by filing these actions.
In this environment, healthcare organizations need a new solution to address growing regulatory liability risk, which is why Aon and our carrier partners created Cosantoir.
How Does the Cosantoir Policy Work?
Combining risk transfer with access to a network of pre-vetted law firms, Cosantoir provides healthcare organizations with comprehensive regulatory liability coverage. Key policy highlights include:
- Available liability limits of up to $50 million
- Coverage for defense and indemnification, which aligns with the increasing severity of judgements
- A minimum retention of $10 million
- Written on a Lloyds line-slip supported by London markets
- Highly qualified panel of pre-vetted defense law firms
- Claims-made indemnification policy form
- A policy form tailored to exposures and reflective of enforcement action nuances, including scripted claim notification language, narrow exclusion triggers, and elimination of hidden exclusions in the definition of loss
How Aon Can Help
Today, Aon is the exclusive broker for Cosantoir policies, making our firm a strong partner for healthcare organizations looking for a more powerful and effective risk transfer solution for regulatory liability in the United States. To see if Cosantoir is a good fit for your business, reach out to our team.
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$7.8B
Total value of False Claims Act, Start Act and anti-kickback settlements in 2021 and 2022.
