The Fall of a Staffing Giant—and the Ripple Effect
In the world of medical staffing, predictability is a luxury. One moment, a physician is knee-deep in patient charts, the next, they’re navigating a legal minefield they never saw coming. Such was the case when a major staffing agency, responsible for employing over 1,200 medical professionals, collapsed into receivership.
It happened fast. The agency folded, and with it, so did the professional liability insurance that covered its medical staff. But here’s the real kicker—their policy wasn’t occurrence-based, which would have covered claims that were not reported during the policy period. It was a claims-made policy, which meant that if a claim wasn’t filed before the policy was cancelled, the coverage ceased to exist.
A Deafening Silence: The Unfolding of a Crisis
Physicians and other medical professionals went from tending to patients, making rounds, and handling high-stakes medical decisions, to pondering their future - knowing that a malpractice suit could land in their lap at any moment—and that they had no insurance to shield them. The agency’s implosion had left them marooned, but worse still, it had left them uninformed.
Enter Westwood Insurance Group.
Taking the Lead—Before It Was Too Late
We saw the writing on the wall and moved quickly. First, we launched a direct information campaign—emails, texts, and phone calls—to alert all known affected providers about their predicament. Time was of the essence; the longer they went uninsured, the higher the risk.
But identifying the problem was only half the battle. We needed a solution, and fast. We approached the original insurance carrier—the one that had initially provided coverage to the agency—and negotiated a lifeline: tail coverage. This extension would allow providers to maintain protection for claims made after the policy period ended. The insurer, already familiar with the medical professionals on the policy, streamlined the application process to remove red tape and expedite approvals.
Building a Bridge to Coverage
To keep up with the influx of inquiries, we streamlined the approach to the -underwriter through a workflow—minimizing delays. At the same time, we intensified our outreach, attempting to make sure all known providers were aware of their options. Every email, every text, and every follow-up carried a simple but urgent message: Act now, before it’s too late.
The effort paid off. Of the 1,200 affected providers, over 430 expressed interest in securing coverage, and just under half of them ultimately secured it. That number might seem modest, but for those physicians, it was the difference between financial ruin and professional security. And for some, that security came just in time.
A Crisis Averted—Just in Time
Even as we were implementing our solution, the inevitable happened. Doctors in the affected group received notification of a malpractice lawsuit filed against them. Had they remained uninsured, their careers—and personal finances—would have been in jeopardy. But they had taken action. They had secured tail coverage. Their insurer stepped in, their legal defense was covered, and a disaster was averted.
More Than Insurance—A Safety Net for All
Beyond protecting individual providers, our intervention had another, far-reaching effect. Without action, this could have turned into a blame game with massive legal consequences. By ensuring that medical professionals were informed and had a path to protection, we not only safeguarded them, but also helped prevent a cascade of lawsuits that could have reverberated throughout the industry.
When Crisis Calls, Westwood Answers
This case wasn’t just about insurance. It was about standing up when things fall apart. It was about seeing a crisis before it became a catastrophe and acting decisively. Westwood Insurance Group didn’t just watch from the sidelines—we took action, found solutions, and fought to protect both doctors and the institutions that support them.
At Westwood, we don’t just sell policies. We provide peace of mind. And when the unexpected happens, we’re there making sure no one faces it alone.
That is the Westwood difference.
