Third Party Administrators Liability Insurance

For those of us who like things simple and straight forward, Third Party Administrators (TPAs) are not that. Their functions can be very diverse including but not limited to actuarial services, claims processing, marketing, operational administration, stop-loss insurance procurement and even underwriting. TPA Liability Insurance covers the Errors & Omissions that can be made in performing these services. Covering the many exposures for a TPA can be complex and if not done correctly can leave a gap in coverage.

TPAs usually have expertise in one or more areas, like professional liability insurance, enabling them to process claims in an efficient and expedient manner, freeing up the insurance company to focus its efforts in other areas, rather than on claims.  Just like any other specialist the need to protect yourself from suits for errors or omissions if the allegations are unfounded.