A Guide On Medical Malpractice Insurance

30 November 2021
 Categories: Insurance, Blog


"To err is human", and even the most seasoned medical professional can make the mistake of error or omission. When that occurs, one risks hefty penalties due to professional negligence. With medical malpractice insurance, you can protect yourself from professional liability. This post provides critical insights into medical malpractice insurance. 

What is Medical Malpractice Insurance?

Medical malpractice insurance protects physicians against claims of negligence initiated by their clients. Essentially, this form of professional liability insurance indemnifies the policyholder against loss arising from an insured claim. There are two major types of medical malpractice insurance coverage, namely claims-made and occurrence policies. In a claims-made policy, one has coverage for incidents occurring and reported during the policy period. Then there is an occurrence policy that provides lifetime coverage for incidents occurring during the policy period but claimed long after ending the insurance with the carrier. 

Who Needs Medical Malpractice Insurance? 

Medical malpractice insurance is essential for any healthcare or fitness practitioner. Such individuals include but are not limited to the following: 

  • Nurses 
  • Therapists
  • Doctors and surgeons
  • Dentists 
  • Optometrists 
  • Nursing and physician assistants
  • Personal trainers and yoga instructors 

Such professionals can access individual or group medical malpractice insurance from a private insurer, through a risk retention group, or employer. Notably, federal and state governments provide liability protection to their medical employees. 

What Does Medical Malpractice Insurance Cover? 

Medical malpractice insurance covers a wide range of scenarios. Broadly, it protects against any claim of negligence or professional mistake that causes harm to another. For instance, a patient may sue you for a misdiagnosis, wrong prescription, or errors during surgery. Then, good samaritan coverage extends your protection when you offer medical care to someone outside your primary work set-up.

Medical malpractice insurance caters to defense costs in such scenarios, including attorney fees, court fees, and arbitration fees. Then, the coverage takes care of medical damages, settlements, and penalties. However, medical malpractice insurance does not cover liability for any criminal acts. 

What to Look for in a Carrier

Naturally, most professionals use cost as the primary consideration factor for a suitable insurance carrier. However, cost does not equate to quality. Keep in mind that the cost of medical malpractice insurance may vary based on professional specialty, experience, and previous claims against you. The best strategy is to check how the insurer handles claims and their sensitivity to the policyholder. Also, consider the carrier's fiscal soundness as an indicator to settle future claims. Significantly, go for an insurance company that organizes regular risk management education programs. 

Whether starting or running a healthcare practice, protect yourself from liability claims through medical malpractice insurance. Consult a reliable insurance company to explore and negotiate your coverage options. 

For more information on medical malpractice insurance, contact a professional near you.