Updated: 29 February 2024

What Does Channeling Mean?

Channeling is a method used by hospitals to protect their employees against liability. It is meant to lower the expense of lawsuits by treating the hospital and its employees as a single party in malpractice charges instead of having each party responsible for its own defense.

Insuranceopedia Explains Channeling

Instead of having one policy per employee, channeling allows a single policy to cover all the employees in a single medical facility. In addition to giving the defendants a unified defense in a malpractice suit, the premiums for a group policy are often lower than those for individual policies.

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