What Will a Claim Cost You?

Malpractice insurance protects physicians and other healthcare professionals against claims made against them or their practice. When claims are made, a number of questions can come up in an already uncertain time. Claims made can have an impact on your premiums, damage your reputation, and can cost hefty legal fees. Arming yourself with knowledge now can save you a headache later.

Most medical malpractice coverages are written on claims-made forms. These policies cover claims made during the policy period unless you hold additional tail coverage. Claims made before the date of the policy are not covered. This only adds to the importance of acquiring coverage retroactively before an issue arises. 

Medical malpractice insurance covers a range of expenses associated with defending and settling malpractice suits; it also pays damages if you’re found liable. Some covered costs include attorney’s fees and court costs, arbitration costs, settlement costs, punitive and compensatory damages and medical damages. Medical malpractice insurance does not cover any claims that arise from illegal activities such as sexual misconduct, criminal acts or alteration of medical records. 

Policy limits can also have an effect on what a claim will cost you. With medical malpractice insurance, the policy limit is split by the limit paid claim and the limit for all claims during the policy term. For example, your policy may cover $1,000,000 per claim but only up to $3,000,000 for the entire duration of the policy. And oftentimes, the higher the policy limit the more protection you get. Consider this when choosing a policy that’s right for you. 

Possible questions to ask yourself when considering a policy:

  • What is your practice’s history with claims?
  • Is your practice high risk? Do your workers work longer hours? Longer hours can often mean higher risk.
  • Do you anticipate the likelihood of multiple claims during your policy period? 
  • What practice/specialties will need coverage? The types of practices and specialties covered under a policy can have an impact on insurance costs.

There are a multitude of questions to consider when assessing your personal coverage needs. Don’t be overwhelmed by this when assessing your need for a medical malpractice policy. Contact us at CARE today to let us help you find a policy that will cover your needs.


  1. https://www.thebalancesmb.com/medical-malpractice-insurance-4172781
  2. https://www.iii.org/article/understanding-medical-malpractice-insurance
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