Medical Malpractice Insurance: Do You Have the Right Coverage as a Doctor?

Medical malpractice insurance is one of the most crucial investments and often a requirement that a Doctor will need in order to practice, but how can you know that you’re fully covered in your specialty? Do you have gaps in your existing coverage? Should you do claims-made or occurrence based insurance? Will you need tail or nose coverage? Is telemedicine included in your policy? What is the consent to settle clause and how does that affect what happens during a claim? What should you look for in a malpractice insurance carrier? Those are some of the questions that any Doctor looking for malpractice insurance should think about when examining which policy to get.

MALPRACTICE STATS:

• According to the AMA, 1 in 3 physicians will be sued for malpractice at some point in their career.
• Failure to diagnose is the top allegation in malpractice claims.
• OB/GYNs and General Surgeons have the highest risk of facing medical liability lawsuits during their career.

What is Medical Malpractice Insurance?

Medical malpractice insurance for doctors protects them from financial losses resulting from medical malpractice lawsuits. It covers the cost of defending the doctor against a lawsuit, as well as any damages that the doctor is found liable for (within the scope of coverage limits).

While legal requirements vary by state, having this coverage in place is widely recommended. The implications of practicing medicine without proper coverage can be severe. If a doctor is sued for medical malpractice and does not have insurance, they may be personally liable for the damages. This could mean losing their home, their car, and their retirement savings. It could also damage their reputation and make it difficult to find a job in the future.

In certain states, practicing without malpractice insurance could lead to disciplinary actions or even suspension of a doctor's medical license.


The Role of Malpractice Insurance: Malpractice insurance is designed to protect doctors from legal claims arising due to negligence, errors, or omissions in their medical practice.

Common claims include: surgical, medication, and diagnosis errors, along with birth injuries and failure to obtain informed consent.

Is Medical Malpractice Insurance Required for Doctors?

Medical malpractice insurance requirements are based on state level, not federal. There are only 7 states that make it law to require physicians to carry a minimum level of malpractice insurance: Colorado, Connecticut, Kansas, Massachusetts, New Jersey, Rhode Island, and Wisconsin.

Even if your state does not mandate malpractice insurance, many hospitals require doctors to obtain their own med mal policy in order to have visiting privileges.

While medical malpractice liability insurance is not legally required for physicians in private practice for most states, it is still highly advisable and expected.

As a doctor, your top priority is providing the best care for your patients. However, even with the utmost dedication, diligence, and skill, there is always a small possibility of an unforeseen complication or error.

There are simply too many potentials for claims due to the amount of patients seen throughout any doctor’s career.

Medical protective malpractice insurance also protects your practice and personal assets. Without coverage, everything you have worked for could be at stake if a sizable claim is brought against you.

The costs of defending a malpractice lawsuit and any damages awarded can easily exceed hundreds of thousands of dollars. For most doctors, this would be financially devastating without insurance.

What does medical malpractice insurance cover?

Medical malpractice insurance covers the cost of defending a healthcare provider against a lawsuit, as well as any damages that the healthcare provider is found liable for (within the scope of coverage limits). The specific coverages can vary depending on the policy, but typically include:

• ‍Legal defense: This includes the cost of hiring an attorney, filing motions, and attending court hearings.‍
• Damages: This includes compensation for the patient's medical expenses, pain and suffering, and lost wages.‍
• Expert witness fees: This includes the cost of hiring experts to testify on behalf of the healthcare provider.‍
• Settlement costs: This includes the cost of reaching a settlement with the patient.‍
• Claims management fees: This includes the cost of handling the claim, such as reviewing medical records and investigating the allegations.‍
• Information privacy coverage: This covers the cost of defending a lawsuit if a healthcare provider is accused of violating a patient's privacy.‍
• Defendant expense benefit: This covers the cost of things like travel expenses, lost wages, and child care expenses incurred by the Doctor while they are involved in a lawsuit.‍
• Deposition representation: This covers the cost of having an attorney present at the Doctor’s deposition.

The specific coverages that are included in a medical professional liability insurance policy will vary depending on your specialty and the insurance company.

What isn’t covered by medical malpractice insurance?

When it comes to insurance policies, it is crucial to thoroughly understand the concept of policy exclusions. These exclusions outline specific situations or circumstances in which coverage may not apply. While policyholders often focus on the benefits and coverage options, taking the time to review and comprehend the exclusions can save you from unexpected surprises and potential gaps in protection.

Malpractice insurance covers most of the typical care that a Doctor would provide, however there are are some exceptions, such as:

• ‍Outside the standard of care: Claims related to treatments or procedures that are considered experimental or outside the standard of care.‍
• Outside the specified practice area: Claims related to medical procedures or services provided outside the geographic area specified in the policy.‍
• Unauthorized modification of medical records: Claims for injuries caused by the unauthorized modification of medical records.‍
• Breach of contract: Claims for injuries caused by a breach of contract, such as failing to provide the agreed-upon level of care.‍
• Defamation: Claims for defamation, which is the act of making false statements about someone that damage their reputation.‍
• Liability for incidents of sexual misconduct: Claims such as sexual assault or harassment.‍
• Prior acts: Claims for injuries that occurred before the policy was in effect, unless there is nose coverage within the policy which extends the retroactive date to cover prior acts.
• Unlicensed activities: Claims for injuries that occurred while the healthcare provider was practicing outside of their scope of practice.‍
• Unapproved procedures or treatments: Claims for injuries that occurred as a result of unapproved procedures or treatments.‍
• Claims outside the coverage period: Claims that are filed after the policy has expired, unless you have additional insurance of tail coverage or it is an occurrence based policy.‍
• Unreported incidents: Claims for injuries that were not reported to the insurance company in a timely manner.‍
• Criminal acts: Claims for injuries caused by criminal acts, such as assault or battery.‍
• Specific exclusions: Malpractice insurance policies may also have specific exclusions, such as exclusions for injuries caused by certain types of equipment or procedures.

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Policy exclusions are typically outlined in the policy documents and can vary depending on the type of coverage and the insurance carrier. It is essential to carefully read and comprehend these exclusions to ensure you have a clear understanding of what is covered and what is not.

What are the common reasons that lead to medical malpractice claims?

There are several common reasons why medical malpractice claims may be filed against physicians and medical practices:

• ‍Diagnostic errors: Failure to properly diagnose a medical condition in a timely manner is a leading cause of malpractice claims. This includes missed, delayed, or misdiagnoses.
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• Surgical mistakes: Errors or complications during surgical procedures are another major reason for malpractice lawsuits. This includes leaving instruments or sponges inside patients after surgery.
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• Medication errors: Prescribing the wrong medication, dosage, or frequency can lead to adverse events and patient harm, resulting in malpractice claims.
• ‍Inadequate or improper care: Failing to meet the standard of care expected of physicians in similar circumstances, including not ordering necessary tests or monitoring patients closely enough.‍
• Lack of informed consent: Not properly disclosing the risks, benefits, and alternatives to a treatment or procedure to allow patients to make an informed decision. This is required for any invasive procedures.


Knowing the main reasons that lead to malpractice claims can help physicians identify potential risks in their practice and take steps to minimize errors through better processes, training, and communication with patients.

What are the Types of Medical Malpractice Insurance?

There are two types of medical malpractice insurance: claims-made and occurrence-based policies. Each has its own set of features and considerations, and the choice between them can depend on various factors, including the doctor's specialty and individual circumstances. Here's an overview of both types and some factors to consider when choosing between them:

Claims-Made Insurance:

• Coverage Period: Claims-made policies cover incidents that occur and are reported while the policy is in effect. This means the policy must be active both when the alleged medical error took place and when the claim is filed.

• Retroactive Date: Claims-made policies often have a "retroactive date," which is the earliest date an incident can occur for it to be covered. This date is typically the same as the policy's start date but can be earlier if the doctor has had continuous claims-made coverage.

• Tail Coverage (Extended Reporting Endorsement): When doctors switch from one claims-made policy to another or retire, they will need to purchase tail coverage to cover claims for incidents that occurred during the coverage period but were reported after the policy ended. Tail coverage can be costly but worth it to protect the Doctor. Some carriers may offer free tail when a doctor retires or has the original policy for a certain period of time.
• Nose Coverage: Covers claims from incidents that happened before the start date of a claims-made policy.
• Premium Structure: Claims-made premiums typically start lower than occurrence-based policies but may increase over time ("step-rated") or with claims history ("experience-rated").


Occurrence-Based Insurance:

• Coverage Period: Occurrence-based policies cover claims for incidents that occurred while the policy was in effect, regardless of when the claim is filed. This means that once the policy has been in effect for a particular year, it will always cover claims arising from that year, even if the policy is no longer active.

• No Need for Tail Coverage: Occurrence-based policies do not require the purchase of tail coverage when switching insurers or retiring, making them more predictable and potentially cost-effective over the long term.


Factors to Consider When Choosing Between Claims-Made vs Occurrence-Based Insurance:

• Coverage Limits: There is a big difference in coverage limits between claims-made and occurrence-based policies. So much so that we have dedicated an entire page to better help explain.
• Premium Costs: Doctors may consider their budget and cash flow, as claims-made policies typically start with lower premiums but may increase over time.
• Long-Term Commitment: Occurrence-based policies provide continuous coverage for past years' incidents without the need for tail coverage, which can be advantageous if you anticipate changing jobs or retiring.

• State Requirements: State regulations and legal requirements may influence the choice of malpractice insurance. Some states have specific rules about the types of coverage doctors must carry.
• Tail Coverage Considerations: Doctors planning to change insurers or retire should carefully consider the cost and availability of tail coverage under a claims-made policy.


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Ultimately, the choice between claims-made and occurrence-based malpractice insurance should be based on an individual doctor's circumstances, including their specialty, financial situation, and future career plans. At DrsCoverage, we can consult with you regarding your specific needs and requirements aiming to find you the right policy for your needs.

Additional Riders and Endorsements

As a Doctor, purchasing the proper medical practice insurance policy is crucial to protecting your practice. In addition to basic coverage, you should consider optional riders and endorsements to customize your policy to your needs.

Tail Coverage (Extended Reporting Period Endorsement)

Tail coverage extends the reporting period for claims that arise from incidents occurring during the original policy period but are reported after the policy expires. Purchasing tail coverage allows you to report claims that surface after you retire, switch insurers, or make other practice changes. Tail coverage periods can vary in length, commonly ranging from one year to an unlimited duration.

Nose Coverage (Prior Acts Insurance)

If you are switching insurers or buying malpractice insurance for possibly the first time, nose coverage insures you for claims arising from medical services provided before the current policy’s effective date. Nose coverage is important if you are a physician beginning a new practice or other instances where prior acts coverage would be useful.

Defense Outside the Limits

This endorsement provides coverage for legal defense costs so that your liability limits are available to pay for judgments and settlements. Without this rider, legal fees could be deducted from your total coverage limit.

Additional Named Insured Endorsement

This rider adds other doctors, healthcare providers, or entities (e.g. medical group) as insureds under your individual policy. All insureds receive the full benefits and share the total coverage limits of the policy.

Considering your practice needs and risk exposure, evaluate how these additional riders and endorsements can construct a comprehensive medical professional liability insurance policy customized to your situation. At DrsCoverage, we can help in identifying the optimal options tailored to your requirements.

How much does medical malpractice insurance cost?

The cost of medical malpractice insurance coverage varies depending on a number of factors, including:

• The type of healthcare you provide: Medical professionals in high-risk specialties, such as surgery and obstetrics, typically pay more for malpractice insurance than those in lower-risk specialties, such as family medicine.
• The risks associated with your practice: The insurance company will consider the risks associated with your practice when setting your premium. For example, if you practice in a high-volume area, you may pay more for malpractice insurance than someone who practices in a rural area.
• Your claims history: If you have had any claims filed against you in the past, you will likely pay more for malpractice insurance.
• The insurance company: Different insurance companies charge different rates for malpractice insurance. It is important to shop around and compare rates before you purchase a policy.
• Med Mal is State Specific: The laws in your state may require you to have a certain amount of malpractice insurance, along with tort reform and damage caps that can affect a premium.

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The annual cost of medical liability malpractice insurance ranges from around $2,500 for low-risk specialties in low-premium states/counties and can reach up to $200,000 or more for high-risk providers in specific counties. Costs tend to be highest in states without caps on non-economic damages.

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Here are some examples of malpractice premiums for high-risk specialties:

• OBGYNs: Often face some of the highest premiums due to the high-risk nature of childbirth. Premiums can range from around $30,000 to $200,000 annually, with certain high-risk areas reaching the upper end of that scale.
• Surgeons: General surgeons also encounter high premiums, which can vary from approximately $20,000 to $150,000 a year, depending on their location and the type of surgeries they perform.
• Neurosurgeons: As with other surgeons, but even more so given the complexity of their procedures, neurosurgeons can expect to pay between $20,000 to over $200,000 annually.
• Cardiologists: Interventional cardiologists, who perform procedures, may have premiums ranging from $20,000 to $100,000, while non-interventional cardiologists might pay somewhat less.
• Anesthesiologists: Their premiums can also be high due to the potential for adverse outcomes during surgical procedures. Premiums might range from $20,000 to $50,000 or more.

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If you have a high claims history or work on high-risk procedures and need non-standard market coverage (due to standard markets not willing to cover you), then that will be higher. At DrsCoverage, we are well-versed in working with Doctors that require standard or non-standard market insurance.

Here are some additional things to keep in mind about medical malpractice insurance premiums:

• The premiums can increase over time, as the risks associated with your practice may change.
• The premiums can also increase if you have any claims filed against you.
• You may be able to get discounts on your premiums if you have certain certifications (like being board-certified) or if you participate in risk management programs.
• Insurance companies may also reward doctors with a discount by being claims-free.

Malpractice Insurance Deductible

The deductible is the amount you must pay out of pocket before the insurance coverage kicks in. An average deductible for a medical malpractice policy is $5,000 to $25,000 per claim. If you can afford to pay higher deductibles, it can significantly lower your premium costs. However, make sure you understand your financial responsibilities in the event of a claim before choosing a high deductible.

RENEWALS

Renewals are done annually. Our team at DrsCoverage can help either keep you with the policy you’re happy with or shop around for you if you would like to switch carriers.

We notify all of our clients 3 months in advance before the expiration date to ensure you have continuous coverage and will go over any changes for your renewal.

If you’re looking for comprehensive medical malpractice insurance tailored to your needs, for the best price for that coverage, reach out to us today to get your free quotes with top carriers.

What are medical malpractice insurance coverage limits?

Medical malpractice insurance coverage policy limits are the maximum amount of money that the insurance company will pay for a claim in a given policy period.

There are two main types of coverage limits: per-claim limits and aggregate limits.

Per-claim limits set the maximum amount of money that the insurance company will pay for any one claim.

For example, if your policy has a per-claim limit of $1 million, and you are sued for $2 million, the insurance company will only pay $1 million. Thus, you would be responsible for the remaining $1 million. That's why it's important to have ample policy limits.

Aggregate limits, on the other hand, represent the insurer’s maximum payout for all claims within a policy period.

To illustrate, if your policy's aggregate limit is $3 million for the year, which is common, and you have three separate claims in that year—$1 million for the first, $1.5 million for the second, and another $1 million for the third—the insurer would cover up to a million for each claim (based on a $1M per claim policy limit) and $3 million total, leaving $500,000 as the responsibility of the doctor.

When choosing a malpractice insurance policy, it is important to consider the coverage limits carefully. You should choose a policy with limits that are high enough to protect you in the event of a lawsuit. The coverage limits can vary depending on the type of policy, the insurance company, and the insured's risk profile.

The variations in coverage limits between claims-made and occurrence-based policies differ, you can learn more about that on its page.

At DrsCoverage, we can look into the different types of coverage limits that are available to you, for you to choose a policy that is right for you.

How to Look for Gaps in Malpractice Insurance Coverage

Looking for gaps in coverage is something that a solid malpractice insurance broker will look into before applying for new coverage. To help doctors avoid any lapses in their liability insurance coverage, it's important to consider the following factors and take proactive measures.

Continuous coverage: It is essential to maintain continuous coverage throughout your career. Gaps in coverage can occur when transitioning between jobs, retiring, or changing insurance providers. It's important to secure coverage before ending an existing policy.

Geographic Coverage: If your current policy has limited geographic coverage, meaning it only applies to specific locations or jurisdictions, there will be a gap in coverage if you expand your practice to other areas. Switching to a policy that offers broader geographic coverage would be essential to ensure you're protected wherever you provide your medical services.

Procedure-Specific Exclusions: Some malpractice policies may exclude coverage for certain procedures or treatments. If your practice includes specialized procedures or treatments that are excluded under your current policy, it may be necessary to find a more comprehensive policy that covers these procedures, ensuring adequate protection for your practice.


Tail Coverage: As mentioned previously, Tail coverage (also known as extended reporting period coverage) can be purchased when looking to switch jobs or retire. It extends the reporting period for potential claims beyond the expiration of your current policy, providing protection for past incidents.

Prior Acts Exclusion: A prior acts exclusion means that claims arising from incidents that occurred before the policy's retroactive date are not covered. If your current policy has a restrictive prior acts exclusion, switching to a policy with a more favorable retroactive date could provide coverage for past incidents and eliminate any potential coverage gaps.


Prior acts coverage: Prior acts coverage can be added to your policy. It covers claims related to incidents that occurred during a previous policy period.

Coverage for Ancillary Staff: Malpractice insurance typically covers healthcare providers, but there may be limitations or exclusions regarding coverage for ancillary staff members, such as nurses, physician assistants, or technicians. It's important to ensure that all healthcare staff members in your practice or facility are adequately covered.

Cyber Liability Coverage: With the increasing prevalence of electronic health records and data breaches, it's crucial to have coverage for cyber liability. If your current policy lacks or provides insufficient coverage for cyber liability, finding a policy that includes robust protection against data breaches and cyber attacks would be necessary to address this coverage gap. Otherwise, a supplementary cyber liability policy can be purchased in addition to your existing malpractice policy to ensure you have the protection you need. 


Consent to Settle Clause: The consent to settle clause in your policy should be reviewed carefully. Make sure that you have the final say in whether a settlement is reached or if the case goes to court. Some policies may include clauses that allow the insurance company to settle without the insured's consent, potentially leaving gaps in coverage if you disagree with the settlement decision.

Coverage tailored to your specialty: Different specialties may require different types of coverage. Make sure that your policy aligns with the unique liability risks you face.

Reporting incidents promptly: It is important to report incidents to your insurance company promptly, even if you do not believe that you have been negligent. This will help to protect your coverage in the event of a claim.

Understanding your policy limits: Make sure that you understand the policy limits of your insurance policy. This is the maximum amount of money that the insurance company will pay in the event of a claim.

Consulting with an expert: It is advised to seek advice from a professional insurance broker specializing in medical malpractice insurance.

These are just a few examples, and there could be other limitations or exclusions specific to your practice or specialty. It's important to carefully review the policy terms and conditions, and if any significant gaps or exclusions exist, it may be necessary to switch to a more comprehensive policy that aligns with your practice's needs and provides adequate coverage.

At DrsCoverage, we can help you navigate the complexities of insurance policies, tailor coverage to your needs, and identify potential gaps.

Lesser-known Malpractice Insurance Considerations

This section delves into lesser-known aspects of malpractice insurance that healthcare professionals should be aware of. From varying statutes of limitations to the impact of electronic health records, these considerations go beyond conventional coverage and require careful attention.

1. Statute of Limitations Variability: Many states have different statutes of limitations for medical malpractice claims. These limitations can vary not only by state but also depending on the type of injury, the age of the patient, and the discovery of the injury.
2. Consent Documentation Impact: Properly documented informed consent can significantly influence malpractice claims. In some cases, a well-documented informed consent process can serve as a defense against allegations of negligence.

3. Impact of EHR on Claims: The rise of electronic health records (EHRs) has led to a new avenue for malpractice claims. Miscommunication, incorrect entries, or system errors within EHRs can contribute to claims against healthcare providers.

4. Tort Reform and Its Effects: Some states have implemented tort reform measures to limit the amount of damages that can be awarded in medical malpractice cases. This can influence the cost of insurance premiums and the nature of claims.

5. Locum Tenens Coverage Considerations: Healthcare professionals should explore whether their malpractice insurance covers them during locum tenens assignments. Not all policies automatically extend coverage to temporary work at different facilities.

6. Telemedicine Malpractice Challenges: With the rise of telemedicine, malpractice claims related to virtual care are increasing. Healthcare professionals need to be aware of the specific liabilities and risk management strategies associated with remote patient care.

7. Insurance Carrier Stability: The financial stability of an insurance carrier is crucial. Doctors should research the carrier's ratings and financial strength to ensure that they will be able to honor claims.

8. Defense Costs Coverage: In addition to covering settlements and judgments, malpractice insurance policies often include coverage for legal defense costs. This coverage can be a significant factor in managing claims.

9. Disclosure and Apology Programs: Some states have implemented laws that encourage open communication between medical doctors and patients after an adverse event occurs. These programs aim to improve patient satisfaction and potentially mitigate legal action.

10. Importance of Documentation: Timely and accurate medical record documentation is crucial. Inaccuracies or delays in documentation can affect the defense of a claim.

11. Multiple Defendants in a Single Case: In some cases, multiple healthcare providers may be named as defendants in a single malpractice case. Understanding how shared liability is distributed among providers is essential.

There are many medical malpractice insurance nuances to know.

At DrsCoverage, we’re here to simplify the process to help you find the right policy, with the goal of insuring your practice optimally.

Let's work together to secure your medical malpractice coverage, so you can focus on what you do best, patient care.


Factors to Consider When Choosing a Medical Malpractice Insurance Policy

Here are some factors to consider when choosing medical malpractice insurance policy:

• Your specialty: The type of medical care you provide will affect the cost and coverage of your insurance. For example, Doctors in high-risk specialties, such as surgery and obstetrics, will need more coverage than those in lower-risk specialties, such as family medicine.
• The risks associated with your practice: The insurance company will consider the risks associated with your practice when setting your premium. For example, if you practice in a high-volume area, you may pay more for malpractice insurance than someone who practices in a rural area.
• Your claims history: If you have had any claims filed against you in the past, you will likely pay more for malpractice insurance.
• The coverage limits: The coverage limits in a malpractice insurance policy are the maximum amount of money that the insurance company will pay for a claim. You should choose a policy with limits that are high enough to protect you in the event of a lawsuit.
• The deductible: The deductible is the amount of money that you will have to pay out of pocket before the insurance company will start paying. You can choose a policy with a higher deductible to lower your premiums.
• The type of policy: As mentioned previously, there are two types of medical malpractice insurance policies: claims-made and occurrence. Claims-made policies cover claims that are filed against you while the policy is in effect. Occurrence policies cover claims that are filed against you for acts of malpractice that occurred while the policy was in effect, even if the claim is not filed until after the policy expires.
• The reputation of the insurance company: You should choose an insurance company that has a good reputation and a track record of paying claims.

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Here are some common mistakes to avoid when buying medical liability malpractice insurance:

• Not shopping around: It is important to compare quotes and coverage options from different insurance companies before you buy a policy.
• Not understanding the policy: Make sure you understand the terms of the policy before you sign it.
• Not getting enough coverage: You should choose a policy with coverage limits that are high enough to protect you in the event of a lawsuit.
• Not getting the right type of policy: claims-made or occurrence. Make sure you choose the right type of policy for your needs.
• Not getting tail coverage: Tail coverage is a type of insurance that extends the coverage period of a claims-made policy. This can be helpful if you are retiring or leaving the practice of medicine. You will need tail if you have a claims-made policy and are looking to switch carriers so make sure you secure that before canceling your existing policy.

Factors to Consider When Choosing a Medical Malpractice Insurance Carrier

Here are some of the factors that a doctor should consider when choosing a medical malpractice insurance carrier:

• Financial stability: The insurance carrier should be financially stable and have a good reputation. You can check the carrier's financial ratings by using a rating agency like A.M. Best.
• Claims experience: The insurance carrier should have a good track record of handling malpractice claims. You can ask the carrier for references from other doctors who have used their services.
• Policy limits: The insurance carrier should offer policy limits that are high enough to cover the doctor's potential liability. The policy limits should be tailored to the doctor's specialty and practice.
• Deductible: The insurance carrier should offer a deductible that is affordable for the doctor. The deductible is the amount of money that the doctor must pay out of pocket before the insurance company will pay for a claim.
• Tail coverage: The insurance carrier should offer tail coverage, which is an extension of coverage that provides protection for claims that are filed after the policy has expired (this is for a claims-made policy). This is important for doctors who are retiring or changing insurance providers.
• Legal defense: The insurance carrier should provide comprehensive legal defense, including the cost of hiring an attorney and paying for expert witnesses.
• Customer service: The insurance carrier should have good customer service and be responsive to the doctor's needs.
• Competitive Pricing: Ensure the insurance carrier offers competitive premium rates by comparing quotes from multiple providers. Look for insurance brokers who can provide free, no-obligation quotes to help you find the best deal.
• Discounts: Investigate available discounts, such as those for claims-free histories, group practice memberships, or early payment. These discounts can often be substantial and significantly reduce overall costs, making the insurance policy more affordable.

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It is important to shop around to compare quotes and coverage options from different insurance carriers before choosing one.

Broker vs. Direct Carrier: Which One is Right for You?

Choosing between a broker and a direct carrier for medical malpractice insurance can significantly impact your coverage and overall experience. A direct carrier sells policies directly to physicians, usually employing their own agents and handling all customer service internally. While this can streamline communication, it often limits the range of options available to the physician.

On the other hand, a broker acts solely on behalf of the physician, offering a multitude of benefits. Brokers work with multiple insurance companies, allowing them to compare policies and negotiate the best coverage and rates tailored to the specific needs of the physician. They can advise on market trends, explain complex policy language, and provide a broader range of options. Additionally, since brokers earn commissions from the insurers, there is no extra cost to the physician for their services. This expertise and advocacy ensure that doctors get the most comprehensive and cost-effective coverage without the hassle of navigating the insurance landscape alone.

At DrsCoverage, we can do all the legwork for you and present you with the policies that fit your needs.

How to Find the Best Medical Malpractice Insurance

To find the best medical malpractice insurance for your needs, you should compare quotes from different carriers. Look for an insurance broker that is experienced in medical malpractice to help you discover policy options. Risk profiles are then evaluated by the carrier based on factors such as specialty, location, claims history, and coverage limits. Our role is to assist in the application process by helping to collect and provide the necessary information for the carrier’s consideration.

Get Multiple Quotes

Obtain quotes from a few medical malpractice insurance providers. Compare not just premiums but also coverage, limits, deductibles, and customer service.

Consider Your Coverage Needs

The coverage you need depends on your risk profile and state requirements. Higher coverage equals higher premiums. Most states require at least $1 million per claim and $3 million aggregate policies. You may need excess limits if you are in a high-risk specialty. Also consider tail coverage, which extends reporting periods for claims made after your policy ends.

Ask About Discounts

Some carriers offer discounts for being claims-free, bundling multiple policies, or choosing a higher deductible. You may also save by paying premiums annually instead of monthly.

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By comparing medical malpractice insurance quotes and coverage, you can aim to find the right policy at the best price for that coverage, to properly protect your practice.

Understand that although an indication can be provided relatively quickly, the actual underwriting process for binding a policy can take weeks. It's important to give yourself that extra time when shopping around.

Be sure to work with a broker that has experience in the nuances of this complex type of insurance.

At DrsCoverage, we focus exclusively on medical malpractice insurance and its complimentary insurance products. We are dedicated to providing you with tailored protection, personalized quotes, and exceptional service. Let us help you secure coverage that fits your needs, so you can focus on patient care with confidence and peace of mind.

In Conclusion

We've covered many aspect of medical malpractice insurance to empower you with knowledge for confident decision-making. Whether you're a seasoned practitioner or just starting your medical journey, this guide will be your go-to resource. Bookmark this page for future reference and reach out to us for personalized quotes and comprehensive solutions.

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Medical Malpractice Insurance FAQs

As a doctor, choosing a medical malpractice insurance policy is an important decision that can impact your practice. Here are some frequently asked questions to help determine the right insurance for your needs:

Do I Need Medical Malpractice Insurance?

The actual requirement will depend on your state and practice, but considering that the medical field carries a higher risk, it’s almost certainly a must. Doctors deal with complex health issues where decisions can significantly impact patients. Factors like uncertainties in diagnosis, diverse patient conditions, and advanced medical technologies contribute to this risk. Furthermore, the litigious nature of society means doctors may face legal challenges despite their best efforts. Therefore, it's crucial for physicians to have effective risk management, including medical malpractice liability insurance, to handle potential liabilities. It's like a safety net for your professional journey, ensuring that you can focus on providing excellent care without the constant worry of legal repercussions. Think of it as an investment in your peace of mind and the long-term well-being of your practice.

Who typically pays for medical malpractice insurance? Me or my Employer?

Many companies do pay for their doctor’s med mal insurance but you should check your employment contract agreement to make sure, including the kind of coverage and limits it offers. You many need additional insurance if you feel the current plan is not as comprehensive.

Am I fully covered if my hospital or medical group provides med mal insurance?

While your hospital or medical group provides med mal insurance covering you for claims arising within the scope of your employment, you still want to ensure you have adequate coverage. Hospital policies often have limits that may not be sufficient for high-risk specialties, and the coverage ends when your employment ends. So having your own policy in addition to any hospital insurance provides a safety net. You can request higher limits or a "tail" policy after leaving to cover incidents that happened while employed. Discuss the insurance details with your employer to understand how the policies coordinate and what supplemental insurance you may benefit from.

How much malpractice insurance do I need?

The coverage limit depends on your specialty and location. Higher risk specialties like surgery or obstetrics typically require higher limits. Check with your state's minimum requirements. It is best to be adequately covered in case of a claim.

How are premiums calculated?

Premiums depend on factors like your specialty, location, coverage limits, and claims history. Premiums increase every year to cover prior acts in a claims-made policy; while occurrence-based insurance is calculated to cover that year's risk. Participating in risk management programs can also help lower premiums.

Do I Need Tail Insurance? 

“Tail" insurance, also known as "extended reporting period" coverage, covers claims reported after the policy period expires. It is recommended if changing or canceling your malpractice insurance, as it covers incidents that occurred during the original policy period. The premium depends on your specialty and coverage limits.

Do I need separate coverage for telemedicine or telehealth services?

Whether or not you need separate coverage for telemedicine or telehealth services depends on your insurance policy. Some policies may cover telemedicine services as part of your regular medical malpractice insurance, while others may require you to purchase a separate policy.It is important to read your policy carefully to see what is covered. If you are not sure, you should contact your insurance company to ask.

Do you provide or want to provide telemedicine services? Let us know and we can discuss your coverage options.

How long does it take to get coverage?

While getting a rate indication could only take a short period of time, the process of submitting preliminary & final application, underwriting due diligence, and binding coverage can be achieved within a few weeks, though may require 5 weeks or more before receiving your certificate of insurance (COI). The timing is very much dependent on the complexity of your risk profile and coverage needs, how quickly we can get your application/responses, the workload of the underwriters, and any clarifications needed regarding your information along the way. You will need to provide information such as your education, work history, claims history, and practice specifications. The insurance company will evaluate your application and may require additional details before approving and issuing your policy. Early application is recommended to ensure continuous coverage - you typically are able to list the desired start date of your policy, to coincide with when you need coverage.

Is there a difference between medical malpractice insurance and medical professional liability insurance?

No, there is no significant difference between medical malpractice insurance vs medical professional liability insurance; they are terms often used interchangeably to refer to insurance coverage for healthcare professionals in case of malpractice claims.

Is there a difference between medical malpractice insurance and general liability insurance?

Yes, there is a significant difference between medical malpractice insurance and general liability insurance. Medical malpractice insurance specifically covers healthcare professionals in case of claims related to negligence or errors in patient care. General liability insurance, on the other hand, provides coverage for a broader range of business-related claims, such as bodily injury, property damage, and personal injury, but may not cover malpractice claims specific to healthcare.

In addition to Medical Malpractice Insurance, at DrsCoverage we offer BOP (business owner’s policy), EPLI (employment practices liability insurance), and Cyber Liability Insurance to our Doctor clients.

Does malpractice insurance cover HIPAA violations?

Certainly, many medical malpractice insurance policies recognize the importance of including coverage for HIPAA violations, especially given the increasing prevalence and significant repercussions of such breaches. It's noteworthy that these violations can lead to substantial fines, legal challenges, and a loss of trust among patients. The coverage often extends to legal defense costs, fines, and even notification expenses associated with a breach. As a healthcare provider, it's crucial to ensure your policy addresses the nuances of HIPAA compliance, safeguarding your practice against the financial and reputational impact of potential violations. Always review your policy's specifics or consult with your insurance provider to confirm the extent of your coverage."

What is Vicarious Liability?

Vicarious liability refers to the legal responsibility of an employer or supervisor for the wrongful or negligent actions of their employees or subordinates. Under the doctrine of respondeat superior, employers and supervisors can be held liable for the negligent actions of their workers committed in the scope of employment.

This type of professional liability applies to medical malpractice insurance as well. If a doctor's employee, such as a nurse or technician, commits malpractice that harms a patient, the doctor may be held vicariously liable and their policy would provide coverage for defending the claim and paying damages. In order for vicarious liability to apply, the employee's actions must have been within the scope of their duties and under the control or supervision of the employer.

Vicarious liability is meant to encourage employers and supervisors to act with due care in selecting, training and overseeing their workers. Medical providers should implement risk management policies and procedures to minimize negligent actions by staff. Employee training, clear guidelines, monitoring and performance reviews can all help reduce the chances of vicarious liability claims.

Even with the best risk management strategies, vicarious liability claims do occur. That is why ensuring adequate malpractice insurance limits that include vicarious liability coverage is crucial for protecting a medical practice financially from these types of lawsuits.

What else should I know?

• Carefully review the details of any policy before purchasing. Key items include coverage limits, exclusions, and your obligations.
• Consider an umbrella policy to provide additional liability insurance above your base policy limits.
• Claims-made policies only cover claims reported during the policy period, so you must maintain continuous coverage. Occurrence-based policies cover incidents that occur during the policy period, even if reported later.
• Some states require doctors to carry a minimum of $1 million per claim/$3 million aggregate in insurance. Higher limits may be needed based on your specialty and location.

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In Closing Remarks

As a Doctor, you have enough to worry about in managing patient care without the added stress of finding the right malpractice insurance. Using a professional medical malpractice insurance broker will save you time (and often money) required to obtain the right policy for your practice. We are your partners in insurance. Having the proper liability protection provides peace of mind, allowing you to focus on what really matters—providing the best care for your patients. With appropriate coverage in place, you can pursue your calling with confidence.

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RESOURCES

American Medical Association (AMA) - www.ama-assn.org‍

American College of Surgeons (ACS) - www.facs.org‍

American Academy of Family Physicians (AAFP) - www.aafp.org‍

American College of Physicians (ACP) - www.acponline.org‍

American Academy of Pediatrics (AAP) - www.aap.org

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REFERENCES

One in three physicians will be sued for malpractice at some point in their career.

OB/GYNs and general surgeons have the highest risk of facing medical liability lawsuits during their career.

https://www.ama-assn.org/press-center/press-releases/ama-one-three-physicians-previously-sued-their-career

Failure to diagnose is the top allegation in malpractice claims

‍https://www.hopkinsmedicine.org/news/media/releases/diagnostic_errors_more_common_costly_and_harmful_than_treatment_mistakes‍