Providers have plenty of options when purchasing medical malpractice coverage. Both the availability of coverage options and the types of plans available can seem a bit overwhelming. Standard insurance companies, as well as specialty insurers, provide policies. But don’t overlook risk retention groups, which can provide great rates along with additional concierge-level services and benefits.
When reviewing a policy, pay attention to the following elements:
- Specific coverage details: For example, determine whether the policy covers compliance-related incidents or HIPAA violations.
- Conditions, exclusions: most policies do not cover criminal acts or sexual misconduct.
- Financial limitations: malpractice policies usually have one cap for the maximum paid per claim per policy year, and another cap that is the maximum paid for all claims during the policy year.
- Policy definitions: what is the “general standard of patient care”, and who defines it?
- Subcontractor liability: determine whether you are a subcontractor to the hospital or clinic where you perform services. Ask if your office/lab personnel are considered your subcontractors.
- Litigation-related costs: this includes what it costs to defend your firm in court, attorney fees, court costs, arbitration and settlement costs, medical damages, and punitive and compensatory damages.
- Reporting period (claims made vs. claims occurrence): in short, a claims-made policy provides coverage if the policy is in effect both when the incident took place and when the lawsuit is filed.
Additionally, it’s important to know your state’s malpractice insurance minimum requirements (if applicable) before purchasing a policy. Not only are state-mandated minimums important, but also consider your own personal and practice asset protection needs, which may vary greatly based on your risk-aversion mentality. It might be in your best interest to work with a professional consultant to determine the appropriate type and amount of coverage for your particular situation.
Contact us today. We can help determine your risk threshold, as well as help you feel comfortable in making a sound decision about medical malpractice insurance.