Medical Malpractice Insurance
What is Medical Malpractice Insurance?
It is a form of Professional Insurance or Errors & Omissions Insurance for a health care provider. It goes by many different names, Medical Negligence Insurance, Physicians Insurance, Physicians Liability Insurance, to name a few. Essentially, it is an insurance policy to cover an error or negligence by a health care provider which resulted in a quality of treatment below the accepted standard of practice in the medical community. Medical professionals obtain Professional Liability insurance, to offset the risks and costs of lawsuits based on medical malpractice.
Healthcare providers and facilities face tremendous pressure from the practice of medicine and also from the business of medicine. There is of course the obvious threat of Malpractice Litigation. What is not so obvious are the other underlying risks such as Vicarious Liability, (acts of their subordinates), Billing Errors & Omissions Liability, Network Security & Privacy Information, Data Breach, Cyber Liability, Employment Practices Liability, General Liability & Property.
All insurance medical negligence policies are not the same. Insurance Policies contain certain terms and conditions which define the risk the insurance company is willing to insure. Those policy endorsements and exclusions form the basis of the insurance contract. Read more in our blog, “Are all insurance policies the same?”
Some key considerations on Medical Malpractice Insurance Coverage are:
Retroactive / Prior Acts Coverage to make sure prior acts are covered without the need to purchase costly tail coverage from a prior carrier.
Consent to Settle, where the carrier cannot settle a case without the physician’s consent. This is an important endorsement because settlements are reported to National Practitioner Data Bank where the information will be accessible to hospitals as well as other parties, possibly affecting the physician’s future insurability.
Defense Cost in addition to the Limits of Liability. Medical Malpractice has significantly high defense costs associated with litigation. Policies which have defense costs included in the limits of liability will be cheaper, but may not leave much in terms of a settlement.
Locum Tenens Coverage allows a temporary, qualified, substitute health care professional to provide Professional Services.
Vicarious Liability is liability that can occur even when no actual agency relationship exists. It is liability which exists due to the actions of someone else working in an office; members of the staff, members of the group practice, independent contractors, (massage & physiotherapists, dental hygienists) and virtually any other health care provider who leases or performs a service at a facility. This is of special concern to physicians, dentists, chiropractors etc who share or lease office space, with other professionals. There is no actual agency relationship between the doctors; they are sharing the burden of common expense. However, to a bystander, this may be viewed as a group practice. A person filing a medical malpractice suit against one doctor in the office may name all the other doctors alleging vicarious liability. And, a physician named solely due to an apparent agency relationship (common office space, independent contractor, i.e. massage therapist etc) may not have insurance coverage for this type of vicarious liability allegation.
Cyber Guard / Data Breach Liability offers protection against regulatory claims arising from HIPPA violations, data theft loss, hacking and rogue attacks, accidental transmission of confidential patient and financial information, and also data restoration and recovery.
Billing Errors & Omissions Insurance provides coverage for fines and penalties, as well as legal and audit expense / representation for errors associated with medical billings or violations of HIPPA, STARK or EMTALA.
Product Liability Insurance offers Liability Insurance Coverage for claims by patients who may have been injured or suffered losses by the use of a product. Manufacturers and Distributors of Medical Equipment face special concerns for use of their products. Also of concern is the prescription by physicians for Medical Equipment. (DMEPOS Durable Medical Equipment, Prosthetic, Orthotic, & Supplies). Physicians or Health Care Providers can face Product Liability exposures for losses stemming from the use of the product even though they are not the manufacturers or distributors.
Whether your practice is large or small, having the right protection will determine if your business will be able to sustain and emerge from a lawsuit. All medical professionals, Physicians, Dentists, Chiropractors, Massage Therapists, Occupational Rehab Facilities, Acupuncture, Reflexology, all face a significant E&O exposure. Call us for competitive and comprehensive Medical Malpractice coverage.
We represent numerous Medical Liability Insurance Companies who specialize in Medical Malpractice Liability insurance and the associated Property and Casualty Insurance.
We work to assist Sole Practitioners, Medical Groups, Dialysis Clinics, Surgery Centers, Urgent Care Facilities & Stand Alone Emergency Facilities.
In addition to the Property and Casualty Insurance, we also quote Workers Compensation, Group Health Benefits, Disability, Auto, Life and other forms of coverage.