What You Need to Know Regarding Medical Malpractice Insurance
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, this coverage is essential for healthcare professionals. 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 who are in the care of the provider 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.
The Medical Malpractice Insurance Policy
The medical malpractice policy starts with a declaration page that has all of the basic information for what the insurance policy covers. It starts with the insurance company name, a policy number and the effective date for which the policy is in place.
It then gives a summary of the limits of insurance and deductible. The description of limits will have separate limits for each claim and the aggregate. This means that for each claim the maximum paid is the each occurrence limit and for the total policy year the maximum paid would be the aggregate.
Another key piece of information on the declaration page will be the retroactive date. This is important as the typical malpractice policy is a claims made policy and this retroactive date provides coverage for an occurrence happening after this date and reported during the policy period.
Limits for Medical Malpractice Insurance
A typical question that arises when buying medical professional liability insurance is, "How much should we buy." Although there is no rule for the specific limit to buy, the usual starting point is million per occurrence with a million aggregate. Some states have tort reform that may lower the limit needed. When considering higher limits consider other factors like; specialty of the medical practices being covered, size of organization and comfort level to risk retention. As healthcare organizations or professions become more complex, there may be a greater need for higher limits or excess coverage which can be placed over the primary malpractice coverage.
Higher limits for medical malpractice or health care professional liability can either continue to increase with limits going to million per occurrence and million aggregate. Another option is to add a layer with an excess policy that sits on top of the original million/ million policy, with layers starting at million and limits up to million or greater for larger organizations. Although there is no set rule for choosing limits for a malpractice policy this will provide you some points to consider.
Do Your Homework
By researching insurance agencies and carriers who specialize in medical malpractice you will put yourself in a good position for protection against malpractice losses. 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.
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RJ Ahmann can assist you with all your insurance needs, visit our website at www.rja.com, or call us at (800) 511-9013. We are standing by to help you get the coverage you need!
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