Medical malpractice insurance

Serving on the frontline in healthcare, nurses face regular interactions with patients that leave them vulnerable to risks. If a patient accused you of giving the wrong medication or injection, you could face an expensive lawsuit. The hospital, clinic, or temporary agency that employs you might have its own liability coverage, but this might not give you sufficient financial protection in the event of a claim.

Similar to nurses, doctors are on the frontline of healthcare. From creating treatment plans to performing surgeries or other medical procedures, doctors find themselves in the unique position of making critical decisions related to patient care. Of course, this opens up the opportunity to lawsuits from dissatisfied patients.

Medical malpractice coverage offers doctors the necessary protection so they can work with peace of mind without worrying of the financial risks of a possible lawsuit from a disgruntled patient.

Physical therapists come into contact with patients directly through stretching, exercise, and massage. Patients often experience some level of pain during treatment, and the level of interpersonal contact means that even the most experienced physical therapist could have an injured patient accusing them of a mistake.

A patient might accuse an acupuncturist of failing to diagnose an issue and refer them for additional medical care. They could also say you caused nerve damage or an infection during treatment. Malpractice insurance provides financial protection against these types of claims.

Healthcare networks usually require doctors, nurses, and other professionals to carry medical liability insurance, even when it's not required by state law.

Some medical systems provide this coverage for their staff. Others self-insure themselves and their staff by creating a liability trust fund to cover the legal defense and settlement costs for malpractice claims. However, healthcare professionals may need to buy their own coverage.

It’s important to make sure you meet your state’s minimum requirements for malpractice insurance, while also taking the risks of your own practice into account.

The most experienced and attentive of professionals can make a mistake or face an expensive and frivolous lawsuit. Medical malpractice insurance covers your cost of litigation, such as attorney fees, as well as punitive and compensatory claims for medical damage.

Even if your employer or the facility where you work has their own liability protections, it can be worth pursuing your own malpractice insurance to make sure you’re fully covered.

The two types of medical malpractice insurance coverage are claims-made and occurrence-based policies.

Businesses will find that most medical malpractice policies are claims-made policies, which cover incidents and claims that happen while the policy is active. If you face a lawsuit after canceling your policy, it would not be covered. Because claims must be filed while the policy is active, it's important to maintain continuous coverage.

Some insurers offer occurrence-based policies, which are more extensive. An occurrence policy covers losses that happened during the policy period, even if the policy is no longer in effect when you file a claim. If you canceled this policy, you would still be covered for any incidents that happened during your coverage period.

When buying a malpractice policy, you can customize the amount of coverage and other factors to fit your business and your budget. This includes:

Tail coverage endorsement

Because most malpractice policies are claims-made, you may want to add tail coverage for increased protection. Also known as an extended reporting period (ERP), tail coverage allows you to file a medical malpractice claim even after your policy has expired. However, the incident related to the claim must have occurred while the policy was active.

Policy limits, deductibles, and exclusions

Every policy has limits, deductibles, and exclusions that may influence your premium.

Policy limits are the maximum amounts your insurer will pay on a claim, both on a per-claim basis and on the aggregate amount of claims made within the policy period (typically one year). Your state may have minimum coverage requirements for both types of limits.

The deductible is an amount you must pay before your insurer will cover a claim. A high deductible will lower your premium, but make sure it's an amount you can easily afford.

Finally, be aware of any exclusions in a malpractice policy. It won't cover illegal activities, such as sexual misconduct, though it will cover you if you're unjustly accused.

For many small business owners, general liability insurance is often the first coverage they buy. It insures you against common business risks such as customer injuries, customer property damage, and advertising injuries. It’s often required to sign leases and contracts.

If a patient is injured during a medical treatment or procedure, it would most likely be covered by your medical malpractice insurance. If a patient or a visitor is injured by an accident, such as tripping on a rug, it would be covered by your general liability policy.

Malpractice insurance is a type of professional liability insurance, sometimes referred to as errors and omissions insurance (E&O). While the terms are often used interchangeably, they’re not exactly the same.

Professional liability coverage relates to a healthcare provider’s business activities, while malpractice covers your legal defense and settlement costs if you’re accused of causing a patient’s injury or death.

If a patient accused you of an error in their treatment that resulted in pain or expensive additional care, it would likely fall under your medical malpractice insurance.

If a customer accused you of violating their privacy under the Health Insurance Portability and Accountability Act (HIPAA), it would probably be covered under your professional liability insurance.

Medical malpractice insurance has other coverage exclusions as well. For example, it doesn't pay for lawsuits that allege patient discrimination or abuse.

It also only covers the cost of defending against lawsuits – it doesn't pay for lawsuits you initiate. For example, this policy won't cover your legal costs if you sue a patient who refuses to pay you.

Unless your policy has prior acts coverage, it only covers claims filed while the policy is active and for incidents that occurred after you bought the policy.

Endorsements can fill gaps in your medical malpractice coverage. To make sure you have the coverage you need, contact our dedicated agent.