Malpractice insurance is a liability coverage for medical professionals such as surgeons, nurses, physicians, etc. It is a type of professional liability insurance that covers healthcare professionals against claims of medical negligence and injury.
Malpractice insurance is sometimes called medical malpractice insurance or medical liability insurance. Keep reading to learn more about this insurance policy and its coverage options.
What is Malpractice Insurance?
Malpractice insurance is a type of liability insurance that protects healthcare providers against patients seeking damages due to medical negligence. Premiums for medical practitioners vary depending on the degree of risk.
This protects them against patients who file suits against them under the complaint of being harmed due to the professional’s negligence or intentionally through harmful treatment decisions.
These policies are often purchased by physicians, physical therapists, nurses, and other medical professionals as a way of being protected from certain liability claims and damages. Malpractice insurance also covers the death of a patient.
Coverage Options for Malpractice Insurance
Different kinds of coverage are available because the medical profession is so varied, and a wide range of practices exist. Three main types of malpractice insurance are the most popular, they include:
- Occurrence coverage: this policy offers coverage when a claim is made, regardless of the event. It covers any claim made on a treatment that occurred when the policy was in effect.
- Claims-made coverage: the insurance manages incidents that only occur when the policy is active, regardless of when the claim is made. It covers claims if the policy was in effect when the treatment was carried out and when the lawsuit was made.
- Tail coverage: it is for healthcare businesses. This coverage protects the insured even after the policy has expired or is over. Additional protection can be provided if claims-made coverage is selected. Tail coverage protects you from claims filed after the policy period ends.
Benefits of Purchasing Malpractice Insurance
Here are some of the benefits of obtaining malpractice insurance:
- It offers financial protection.
- It protects your business reputation.
- Also, It gives peace of mind since you don’t have to worry about lawsuits or financial ruin.
- Legal assistance is made available through malpractice insurance.
- It provides coverage for legal defense costs.
- Regulatory compliance.
Factors Affecting the Cost of Malpractice Insurance
Here are some factors that affect the rates of malpractice insurance:
- The health provider’s area of specialty.
- Type of coverage.
- Limits of liability.
- The practice location.
- Loss history.
- The size of the medical facility and number of patients.
How to Obtain Malpractice Insurance
Here is a guide on how to obtain malpractice insurance:
- Understand the malpractice insurance requirements of the state where you practice, as each state has different regulations and coverage limits.
- Determine the coverage limits and policies you require.
- Prepare the necessary documents needed for the application.
- Research on insurance providers that specialize in malpractice insurance.
- Contact and request quotes from insurance providers based on your needs.
- Compare the quotes from insurance providers to find the best coverage and rates for you.
- Review the policy details.
- Complete the insurance application form accurately and honestly, as the insurance company may review it.
- Once the company provides you with a premium quote, make the necessary premium payment to activate the policy.
It is important to maintain the coverage continuously.
Companies that Offers Malpractice Insurance
Below are some of the companies that offers malpractice insurance.
- The Doctors Company
- Nurses Service Organization
- Healthcare Providers Service Organization
- CNA Insurance Group
- Dentist’s Advantage etc.
Frequently Asked Questions
Below are some frequently asked questions.
What Types of Costs are Covered Under a Malpractice Policy?
The types of costs covered under a malpractice policy are broad. They include all legal fees such as lawyer fees, medical damages, punitive damages, and settlement and arbitration costs.
What are the Seven States in the United States That Require Insurance?
Here are the seven states that require malpractice insurance.
- Rhode Island.
- New Jersey.
Who is Responsible for Paying for Malpractice Insurance?
You are solely responsible for paying your malpractice insurance if you own a medical practice. However, your employer may cover the cost for you if you are an employee of a hospital or healthcare network.
Malpractice insurance protects medical professionals from malpractice services that result in harm or the death of a patient. They are more common than you might think. Every business in the medical industry should obtain the minimum amount of malpractice insurance.