Medical malpractice insurance, also known as medical liability insurance, is a requirement for most medical professionals. While medical malpractice insurance tends to be costly for healthcare providers, there are a few ways to obtain smaller premiums. Here’s a handy guide to medical malpractice insurance.
The Basics Regarding Medical Malpractice Insurance
Medical malpractice insurance provides liability coverage for healthcare professionals in regards to errors that occur in their medical practice. This professional coverage is outside of what a normal general liability policy will cover.
Malpractice insurance covers medical professionals for lawsuits arising from errors in the duty of the provider. This includes coverage for bodily injury of patients and the associated costs of lawsuits and damages rewarded. This also includes coverage for defense costs for claims made against the provider, whether they have merit or not.
While defense costs are covered, it is important to understand if this is included in the policy limit or outside of it, as this could eat away at the limit of coverage in the policy. In addition while malpractice insurance covers liability from errors in medical care, insurance companies will not cover acts that are intentional or criminal.
Legal Regulations and Medical Malpractice Insurance
All states have some sort of governing body that oversees the administration of medical malpractice insurance. It’s important to only carry insurance with a company that is registered and regulated by the state in which you operate.
Although there are fewer insurance carriers who write medical malpractice insurance then typical general liability, most providers can still find multiple options for coverage. Although cost of the policy is important, it is more important to find a strong carrier with experience in the industry. It’s much safer for your practice to buy a policy from a company that has established itself as a reputable carrier for malpractice insurance.
Also, each state has a different medical malpractice atmosphere. This includes tort reform laws and court cases which have set a precedent for malpractice lawsuits. Consult with a legal professional regarding tort reform laws in your state and the impact on your professional liability and malpractice insurance. Some states may provide a less litigious atmosphere for your healthcare practice.
Medical Malpractice Insurance Options
When placing your medical malpractice insurance it is important to work with professionals who understand your practice and have access to carriers who specialize in providing malpractice coverage. By doing this you will have access to more options for coverage and potentially better pricing from policy specialization and competition.
There are also alternatives to traditional medical malpractice written through insurance carriers. These would include group captives and risk retention groups, which in the right circumstances can provide benefits to providers. It is important to have an understanding of how these alternatives work before seeking malpractice coverage through one.
Report Claims Promptly
Prompt reporting is one of the most important facets of malpractice insurance. If a claim comes up, it is absolutely imperative to report it immediately. According to Dr. William Frank of Canton, Ohio’s Emergency Physicians Group, “Insurance companies will try to deny coverage, but reporting a claim promptly increases your chance of receiving reimbursement for any claims.” In addition by getting the insurance company involved early it can lead to better results in the claim.
While many healthcare professionals eagerly await tort reform, others are focusing on reducing current malpractice costs. Working with an agent who knows your industry is the first step in assuring a comprehensive and secure malpractice policy.
It is also important to work with insurance carriers who specialize in malpractice and are financially sound. By doing this you can ensure a sound medical malpractice insurance policy for you and your health care practice.
<input id=”gwProxy” type=”hidden” /><input id=”jsProxy”>
Source by Russ Birch
