Medical Malpractice Coverage - Capstone Brokerage

By: Mary Thompson, Capstone Brokerage President, February 6, 2017

Medical professional liability insurance is one type of professional liability insurance that protects Physicians and other licensed health care professionals from liability associated with their patients and the care provided. A single Medical Malpractice Insurance claim carries the potential to financially and professionally devastate even established medical providers and practitioners.

Who Needs Malpractice Insurance?

Every medical professional has individual needs for coverage, any individual, group or facility providing patient care, diagnosis, treatment or prescription services are at risk of being named in a Medical Malpractice suit. This includes, but is not limited to:

• Physicians
• Nurses
• Anesthesiologists
• Therapists
• Counselors
• Chiropractors
• Pharmacists
• Holistic Medical Providers
• Healthcare Facilities of Every Type

There are two options when looking for Medical Malpractice Insurance: Group and Individual policies. It is often recommended that both are in place.

Group medical malpractice is when a group of physicians or a healthcare facility which employ a wide assortment of medical professionals has coverage in place. Group Medical Malpractice policies are put in place to cover an entity, comprised of multiple medical providers.

Individual medical malpractice policies is used when Individual doctors working independently need medical professional liability insurance. Coverage is sometimes required by law and, more importantly, it is the only thing that stands between a doctor and a potential liability that could reach into the millions of dollars.

It is also recommended that even doctors covered by a group medical mal practice policy seek individual coverage as well. An individual policy will cover the additional risk not covered by the group policy. It is recommended for full protection, that each individual professional should carry malpractice insurance that protects them individually as well.

For example, if the employer-provided policy is an individual policy for the doctor, that means—should the doctor get sued—there is no potential conflict of interests in legal representation. The doctor’s legal counsel will be working directly for her rather than for the hospital. Likewise, if a doctor decides to leave the practice or take a different job he can take his policy with them and simply take over payment of the premium.

What Can Be Covered Under Medical Malpractice Policy?

Medical Negligence
– An Act of omission by a medical professional that is not accepted as the medical standard of care.

Bodily Injury caused by negligence
– perhaps one of the most important aspects of a medical malpractice policy is that it covers bodily injury to a patient.

Injury related damages – pain, mental anguish, loss of work and even the cost incurred by additional medical procedure needed to repair the damages.

There is also coverage under malpractice insurance for failure to diagnose, improper treatment, failure to warn patients of known risks, etc. Like with any type of insurance coverage there are also exclusions. Meaning not every act is covered by medical malpractice insurance policies. If a doctor makes a misrepresentation on the policy application, it can void the policy altogether.

Negligence and the cost associated with proving or disproving negligence can be a complex and expensive to defend. Having proper medical malpractice insurance in place is imperative for all medical professionals. Medical liability insurers spend substantial funds investigating and defending claims where there is an adverse patient outcome not resulting from negligence.

Medical malpractice insurance is unique based on the type of practitioner seeking coverage. For example, a surgeon has different risks then a psychiatrist and a family practitioner. Understanding these unique needs is simplified buy having a knowledgeable insurance broker. Utilizing an insurance expert to advise and assist the practitioner in their individual risk will ensure proper coverage is in place. Medical professionals should always seek assistance in order to help reduce risk while simultaneously providing coverage to guard assets in the event of a claim. There are programs that are carefully tailored to provide medical professionals with the peace of mind and protection needed in order to provide their patients the best possible care.