Errors & Omissions (Professional Malpractice) insurance covers a wide variety of honest mistakes that a medical professional can make. This important protection is separate of your general, business or property liability coverage. In this article, we’ll look at the details of that coverage, and what it does NOT protect against.
When a company issues an E&O policy, there will be a specific limit to the liability that the company is assuming. This cap usually covers both legal costs to defend the professional and any damage amount which may be awarded, combined into one dollar amount. You’ll want to be sure to obtain coverage for more than just the potential award risk, because legal defense can be very costly, and may include the costs of expert testimony to demonstrate that you were acting responsibly and within normal guidelines for your field.
Your Professional Malpractice policy will not protect you against any action which was not accidental, which involves fraudulent or illegal activities. Many policies also exclude punitive damages which may be levied by a jury or the courts. Since each policy is a unique civil contract, you’ll want to read yours carefully and discuss any questions with your insurance agent. Presidio is always happy to discuss any such concerns with their clients.
The protections of legal defense are very important. You don’t have to actually have been negligent, or made a mistake, to be sued for it. The mere allegation can cost a great deal of money, stress and distraction. It’s a huge relief to know that the insurance company is your partner in this matter, protecting both of you against such loss.
Another way that Medical Professionals can end up sued is simply being associated with the circumstance, with no mistake or negligence (or even a possibility of one) on your part. Lawyers are prone to throwing suits against everyone even remotely connected to a case and seeing what will stick. Defending against such suits, whether frivolous or legitimate, can cost hundreds of thousands of dollars. It may very well be an unfair allegation, but you’ll still be expected to answer to it. An Errors and Omissions policy is your best defense against such actions.
Presidio welcomes the opportunity to discuss your situation, assess your needs, and offer protection custom-fit to your needs. Check back with us tomorrow to find out more about what you can do to reduce your exposure to lawsuits.