Exposure

Exposure is the risk of financial loss. There are different types of exposure for health care operations. An exposure is the total value of what is covered under a policy of insurance. Directors' and officers' coverage, property insurance, and product liability can be particularly expensive sources of health care operations loss. Director's and officer's insurance covers the board of directors and officers of a health care organization for administrative activities such as medical staff appointment approval and decisions made by the board to act in the best interests of the institution.

Litigation and claims history of a health care entity can be used to project pending losses that exceed coverage limits or reveal gaps in coverage. The other area of exposure requiring evaluation is the potential for inheriting personnel problems from workers compensation losses, EEOC litigation, or Occupational Safety and Health Administration (OSHA) regulation violations. More recent types of exposures are related to expansion of services away from the primary health care site to broaden services and compete with large health care systems. Off-premises liability may involve contracted services and personnel to supplement existing resources and staff. In each type of exposure, quality issues may arise that may represent liability that is not anticipated, funded, or insured.