Telemedicine Providers Warned: Certain Practices Can Lead to Denied Coverage or Sharp Premium Increases

Naples, FL - September 6, 2025 - Homewood Insurance Group, a specialty brokerage serving the healthcare and senior living sectors, is advising telemedicine providers that while telehealth is typically seen as a low-risk business with favorable insurance rates, certain high-risk practices can quickly change that picture.

"Many telemedicine organizations start out with excellent rates," said Ralph Schiller, Senior Broker at Homewood Insurance. "But when providers step into higher-risk activities-like cross-state prescribing or using non-HIPAA-compliant platforms-insurers either deny coverage outright or apply steep surcharges."

According to Homewood Insurance, key risk factors that affect telemedicine coverage include:

Cross-State or Cross-Border Care Without Licensure - Violates state laws and invites standards-of-care disputes. Often results in outright denial.

Prescribing Schedule II Controlled Substances - Strictly regulated, with high addiction liability. Almost always excluded unless DEA endorsements apply.

Telesurgery or Remote Procedure Guidance - High complication risks and malpractice exposure. Typically excluded; requires specialty policies.

Non-HIPAA-Compliant Platforms - Creates major data breach exposure. Can void coverage if repeated violations occur.

Prescribing Schedule III-V Controlled Substances - Risk of overprescribing. Often results in 20-50% premium surcharges.

Diagnostic Services in High-Risk Specialties - Telepsychiatry and teleradiology have higher misdiagnosis risks. Premiums may double in certain states.

AI/mHealth Diagnostic Tools - Opaque decision-making raises liability. Carriers often add 30%+ premium increases or require riders.

Emergency or Urgent Care Consults - Limited ability to intervene during acute crises. Premium surcharges are common.

Inadequate Consent or Documentation - Failure to explain limitations leads to lawsuits. Premiums increase 15-25% with claims history.

"These factors are often overlooked when organizations first launch telemedicine services," Schiller explained. "But as operations expand, insurers take a closer look. If the right protocols, licenses, and platforms aren't in place, coverage can be denied at renewal, leaving providers unprotected."

Homewood Insurance works with nearly 100 carriers to help telemedicine practices secure tailored coverage that accounts for evolving risks.

For more information, visit: https://homewood.insure/telemedicine-malpractice-insurance/

Homewood Insurance Group
4850 Tamiami Trail N, 3rd Floor
Naples, FL 34103
Phone: +1-947-274-3093
Contact: Ralph Schiller, Senior Broker

Homewood Insurance Group is a specialty insurance agency based in Naples, Florida, focused on serving professionals in the healthcare and senior living sectors. With access to nearly 100 carriers and deep expertise in medical malpractice, general liability, sexual abuse and molestation (SAM), and cyber liability, Homewood helps agents secure tailored coverage solutions for complex risks. The firm is committed to protecting clients and growing their business.

This release was published on openPR.