If the employer has immunity from a lawsuit, that can make the drug and alcohol testing laboratory the only entity left to sue, which may increase the likelihood of a suit and the amount of damages against the laboratory.
abuse issues that could negatively impact the outcome of her surgery and her ability to recover from the surgery. Te surgeon orders a drug test from Drug & Alcohol Testing, Inc., to confirm that she has no illegal drugs in her system. Te drug test comes back clean and the surgery proceeds as planned. During the surgery, Lisa has a reaction to the anesthesia, slips into a coma, and dies. Te autopsy reveals that she had illegal drugs in her system and that the drug test was incorrect. Lisa’s family sues Drug & Alcohol Testing, Inc., for wrongful death including loss of consortium, lost wages and punitive damages. Te examples above are meant to
provide an idea of the type of lawsuits and liability concerns that drug and alcohol testing laboratories face. Te frequency (number of claims) and severity (amount of damages paid out in the claims) of claims against drug and alcohol testing laboratories will be impacted by the regions and states in which they operate, the customers they provide services to, and other factors that are unique to their business and operations. Additional factors to consider include possible immunities available to the laboratories’ clients and the limits of liability that the other defendants named in the lawsuit maintain.
Other Factors to Consider Immunity
Governmental employers, including federal, state and city employers, may have immunity from lawsuits depending on the nature of the lawsuits. If the employer has immunity from a lawsuit, that can make the drug and alcohol testing laboratory the only entity left to sue, which may increase the likelihood of a suit and the amount of damages against the laboratory.
Limits of Liability Many laboratories contract out MRO services and testing services to other
28 datia focus
laboratories. Tis can lower the liability that a drug and alcohol testing laboratory faces if they are not conducting the actual tests or providing MRO services. But what happens when the MRO has lower limits or no malpractice insurance? Or the laboratory to which services are contracted out accidentally lets their malpractice insurance lapse? Tese situations can lead to your business being the only available avenue to pursue for damages. Operating a drug and alcohol testing
laboratory requires owners to take on many roles, from human resources to specimen collector, bookkeeper to risk manager. Being aware of the risks your business faces and possible allegations and lawsuits that can arise in the normal course of business will beter prepare you to mitigate possible risks, whether they arise from traditional liability concerns, emerging areas, or other factors that impact your business. ❚
Tis article is provided for general informational purposes only and does not constitute legal or risk management advice. Readers should consult their own counsel for such advice. OneBeacon Insurance Group hereby disclaims any and all liability arising out of the information contained herein. OneBeacon Insurance Group is the insurance provider of DATIA’s industry insurance program through BB&T. Stay tuned for a follow-up article in the Spring edition of DATIA Focus.
Sarah Logue leads the Medical Facilities Division at OneBeacon. She joined OneBeacon in 2011 and prior to that worked at Markel Corporation, where she
underwrote multiple professional liability lines. She started her underwriting career at the James River Insurance Company. Prior to that, she worked as an independent agent. In addition to her 20 years’ experience in the insurance industry, Sarah holds the CPCU, RPLU, AU and ASLI designations. She also has her Master’s in Science Management in Risk Management and Insurance from Florida State University, and is currently pursuing a Master’s in Insurance Law from the University of Connecticut Law School.
winter 2018
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