Channeling

What Does Channeling Mean?

Channeling is a method used by hospitals to protect their employees from liability. It aims to reduce the costs associated with lawsuits by treating the hospital and its employees as a single entity in malpractice claims, rather than holding each party individually responsible for its own defense.

Insuranceopedia Explains Channeling

Instead of providing individual policies for each employee, channeling allows a single policy to cover all employees within a medical facility. This approach not only provides a unified defense for defendants in malpractice suits but also typically results in lower premiums for a group policy compared to individual policies.