As a medical doctor, you likely understand the importance of having good medical malpractice insurance. After all, we’ve all heard of cases where doctors were sued for staggering amounts— amounts that no private individual could recover from. However, what constitutes good malpractice insurance? And how do you know? It starts with an awareness of the options you have when it comes to liability coverage. Then, once you know what your options are, a seasoned broker or healthcare practice consultant can help you find the best fit for the coverage you need.
Sources of Coverage
- Traditional commercial carriers operate just like any other private business and are owned by shareholders who receive profits made, but also hold the associated risk.
- Physician-owned insurance companies are owned by the policyholders and work by pooling premiums and sharing risk among the policyholders. In some cases, if the fund grows premiums can be reduced or dividends may be paid to policyholders. Physician-owned insurers include mutuals, trusts, and risk retention groups (RRGs).
- Brokers don’t insure doctors themselves but function as guides helping physicians know what options exist and the pros and cons of those options. Brokers are able to shop the market for the best quality coverage and rates. A good broker may even be able to access negotiated rates with some carriers.
Types of Coverage
- Claims Made Policies – These policies are cheaper than occurrence policies, but that is because they mitigate less risk. Under a claims made policy both the alleged act of malpractice and the claim made by the patient must occur during the period that the policy is active. In other words, if an alleged act of malpractice occurs while the doctor is insured under a claims-made policy, but the patient files the claim after the policy period has ended the claim will not be covered.
- Occurrence Policies – As the name implies an occurrence policy covers any claim arising from an incident that occurred during the policy period. So, even if a patient brings a claim years after the alleged malpractice occurred and after the policy period has ended the claim will be covered as long as the incident occurred while the policy was in place.
- Nose and Tail Policies – These are separate policies that can be purchased in addition to a claims-made policy that extends the coverage beyond the policy period. A tail policy extends coverage into the future after the policy period has ended. For instance, when a physician who had a claims made policy retires he may want to purchase a tail policy to cover his liability in retirement. It’s also worth asking a potential insurer or broker about discounted or free tail coverage which is sometimes offered.
Additional Coverage Considerations
Beyond the type of insurer you choose and the type of policy you purchase other factors are important to consider. For instance, some policies will include cyber liability coverage for data breaches or compliance failures. Some policies come with exclusions for certain acts of malpractice that they will not cover. All malpractice policies have limits of liability—that is they will only cover a certain dollar amount per occurrence and in the aggregate over the policy period. But some policies deduct costs associated with legal defense from your liability limit while others don’t. Your risk tolerance will determine the limits of liability you are comfortable with, but it’s also worth finding out what the average is for a physician with your specialty in your geographic location. These are just some of the things to consider when shopping for medical malpractice insurance, and they illustrate the value of having an advocate who knows what to look for.
Let Us Help
At eQuoteMD, our medical malpractice insurance specialists shop for the best coverage and best rates for providers active in all 50 states. Whatever your specialty, we can show you what best practices should entail so you and your patients are protected. And we can likely save you money by bundling. We have access to other lines of insurance (general, workers’ comp, etc.) and can put together a comprehensive package for you that covers all your needs at the best rates available.
To find out more about keeping you and your patients safe, call our St. Louis, Missouri office at (855) 857-8746, or you can request a detailed insurance quote online through our website. We help protect healthcare providers in all medical specialties practicing in every state
