Whether you work in a clinical or non-clinical setting, medical malpractice insurance can protect you against lawsuits and claims of alleged negligence. Weāve evaluated the best medical malpractice insurance providers based on coverage, financial stability, customer satisfaction, and overall quality
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Medical malpractice insurance provides liability protection if a lawsuit is filed against a medical professional. The insurance company will provide assistance in the form of covering the settlement amount, legal costs of an attorney, or by providing an attorney to help defend the professional.
Who needs medical malpractice insurance coverage?
Recent studies suggest as many as 250,000 people die in the US every year from medical negligence and that number could be as high as 440,000.
Medical malpractice insurance is mandatory and required by most states to provide healthcare services. Any professional or medical practice providing direct or indirect patient care will need to protect themselves against liability, such as:
Physicians
Doctors
Nurses
Medical students
Dentists
Dsychiatrists
Types of medical malpractice insurance coverage
When taking out medical malpractice insurance coverage, itās important to consider that claims can be made long after the incident took place. The most common types of coverage are:
Claims made: This policy gives liability coverage provided that the incident took place and a lawsuit is filed while the policy is still in effect. Although this policy is the most widely available, it can expose medical professionals to lawsuits after the policy period has lapsed. Certain claims-made policies provide a ātailā coverage where should a lawsuit arise after a policy has lapsed; coverage is continued for a fixed number of years. Tail coverage can also be negotiated at a premium if required when switching insurance providers, medical practices, or retiring.
Occurrence: This policy provides liability coverage for any incident that took place during the time of the policy, even if the lawsuit is filed after the policy coverage has ended. Even after retirement or switching practices, the policy remains intact but comes at a higher premium and is less frequently provided as an option.
What does medical malpractice insurance cover and exclude?
Coverage for medical malpractice insurance will cover medical professionals when faced with allegations of negligence resulting in a lawsuit. Typically, policies include:
Legal aid: The costs of attorney fees, court, and settlement fees. This can either be in the form of a payment upfront or a reimbursement of legal expenses.
Settlement amount: Medical damages awarded to the patient.
Direct legal counsel: A growing number of insurers are providing legal counsel to their policyholders.
However, policies do have limits. There are exclusions for negligence while under the influence of alcohol and drugs, sexual misconduct, criminal activity, or any reckless or intentional misconduct. Many policies may also exclude errors made by the hospital administration, accusations of Medicare fraud, employee disputes, mishandled records, and personal accidents that occur in your private practice unrelated to the personās medical care.
How much does medical malpractice insurance cost?
The cost of medical malpractice insurance can vary depending on your specialty as certain medical professions carry a greater risk of liability which can potentially increase legal bills. Very low-risk specialties can expect to pay less than $10,000 for annual insurance, while high-risk medical professionals can pay $50,000 and above.
Your state and city also impact your premiums. According to an American Medical Association (AMA) Report, General Surgeons can expect to pay $41,775 in Los Angeles-Orange County, California while paying $190,829 in Miami-Dade, Florida.
The cost of medical malpractice insurance will depend on:
Your state, county, and city: Cost differences will be impacted by the rate of lawsuits in your state or city.
Previous claims made against you: Your claims history will be taken into account by the malpractice insurer. The higher the number of claims in your history, the more likely your premiums will be higher.
The type of policy: Claims-made policies are less costly and more common than occurrence policies. In case of cancellation of your claims-made policy, or switching insurance provider, tail coverage can be purchased to provide adequate ongoing coverage for typically 1.5 to 2 times the annual premium of malpractice insurance.
Risk exposure: Your specialty is a large component of the cost of your malpractice insurance. Higher risk specialties are exposed to larger legal claims and this will be reflected in your premium.
Deductibles and liability limits: Low deductibles and high liability limits will be reflected in higher premiums.
What are the limits of medical malpractice insurance?
Like all insurance policies, there will be limits to the coverage your policy will provide. The majority of settlements will offer a maximum per claim and a maximum in each year of the policy. If some claims and judgments exceed your insurance policy limits, youāll be personally responsible for paying the excess damages.
Generally, a single claim will offer coverage up to $300,000 and a maximum active policy claim (typically one year) of up to $1 million to $3 million. Itās important to manage your financial risks by taking out adequate policy coverage for malpractice and managing the financial cost of the policies by not taking out excessive cover.
How to choose the best medical malpractice insurance?
Itās important to understand the terms and conditions before purchasing a medical malpractice insurance policy. Before you select a plan, here is what to look for:
Check the insurers rating and company size: Small insurance companies that have a handful of large losses can become financially unstable even with a strong āAā rating. Research the best companies in your state and specialty as youāll want an insurance company that is reliable during a crisis. Any company with an āAā rating is considered a high standard with A++ being the highest rating.
Be upfront with your policy provider: Your policy coverage will be recommended to you based on the level of risk involved in your specialty. Failing to provide a list of all the procedures and functions you perform or taking on new procedures without first telling your carrier, can leave you open to legal action without adequate coverage.
Compare multiple malpractice insurance providers: Shopping around for an insurance policy can be time-consuming, but its important to compare multiple providers to find the best one for you. Each have their own specialty that can fit your financial situation.
