Malpractice insurance is an important cornerstone to every medical practice. Often called Medical Professional Liability Insurance, a policy may provide coverage for various items, but at its core, the policy will cover the costs associated with negligence lawsuits including legal fees, expert witness fees, and other expenses. If a case is won, lost or settled, malpractice insurance provides the payment and the legal defense you will need.
Malpractice insurance can cover individual doctors, groups of physicians, employees, medical facilities, medical corporations, partnerships, and healthcare professionals. A policy can be very complex. Term such as slot policy, tail coverage, prior acts dates, are synonymous with medical professional liability insurance. There are two types of policies to choose from, claims-made or occurrence-based policies. Malpractice insurance can also include various provisions such as the “consent to settle clause” and defense costs “outside policy limits.” Additionally policies can contain exclusions for illegal conduct and misrepresentation on applications.
Malpractice insurance is sold three ways—directly by an insurance company, by an agent of an insurance company, or by an independent agent or broker who sells the products of numerous insurance companies. Premiums for medical malpractice insurance will be the same no matter how the product is purchased. However, those who buy through an independent agent ensure they will be able to tailor their malpractice policy to their specific needs. The independent agent understands the complex policy legalese, benefits, exclusions, and provisions.
Independent agents act as guides and can recommend other types of insurance to protect a doctor, employees, and clinics. An agent who specializes in med-mal understands the risks a physician in private practice faces and can suggest other coverage options. These include data breach/cyber liability insurance, property insurance, and business interruption insurance. These policies can be written to include multiple locations, and facilities such as a medi-spa and other types of non-traditional medical practices.
An independent agent will offer a doctor multiple options each year at renewal time. They will shop a policy’s malpractice premiums and some may offer premium financiang options. Independent agents also take the time to personally meet with their clients to help explain the coverage options available. ASn important step considering some malpractice premiums may cost more than 100K. This is an important service and working with an agent can be a time and cost-saving solution absolutely necessary for today’s overbooked doctors.
The purpose of this article is to provide information, rather than advice or opinion.