Medical Professional Liability Insurance or Medical Malpractice Insurance is a term thrown around the healthcare world. You are told you need it. You are told you don’t want to be caught without it. But have you ever wondered about the true benefits of having medical professional liability insurance? In this article, we will look at the following important benefits of medical malpractice insurance:
- Protection of personal assets.
- Protection of practice.
- Protection of patients.
- Required by law.
Medical Malpractice insurance protects a physician’s personal assets. Being a type of liability insurance, it protects more than a piece of property, it can protect your livelihood. There are cases in which physician malpractice has led to claims, that have led to lawsuits, that have led to forfeiture, and total loss of assets. It is a frightening thing knowing that a workplace mistake could cost you everything. According to the American Medical Association (AMA), 1 in 3 physicians faces a claim by age 55, with half of those resulting in a suit. Having the right insurance in place is essential to safeguard against the threats of claims and lawsuits.
Medical Malpractice insurance protects a physician’s practice. After years of medical school, residency, and building their practice, the last thing a physician wants to do is see their time, money, and hard work go to waste. Without the right insurance in place, the first thing that typically goes amidst a suit is their practice. Claims are almost guaranteed, and with them is the threat of loss, but with the right insurance in place, that loss can be avoided.
Medical Malpractice insurance protects the patients. No physician wants to see a patient suffer due to their treatment or care. Unfortunately, however, accidents happen. It is important to prepare for accidents because the preparation not only protects the physician, but it protects the patients. Having the right insurance in place ensures that the patient will receive adequate compensation. Patients want to seek care from doctors who can protect them even when accidents occur. By having coverage that pays adequate compensation, physicians offer an extra level of comfort to their patients.
Medical Malpractice insurance is required by most states. Whether there is a requirement to practice, or a minimum amount of coverage needed, most states have a legal incentive to practice insurance. Aside from the fact that you’d be legally obligated to have it, it is important to dive deeper into what the legality of it means. Laws, in theory, are in place to protect the common good. Meaning, being legally obligated to have medical malpractice insurance further shows the importance of its capacity to protect every party involved.
What Do the Numbers Say?
The average premium for medical malpractice insurance is roughly 3% of the physician’s yearly salary. The average physician’s salary is $208,000, which would result in an annual premium of $6,214. The average claims payout for medical malpractice is $329,565, which is 53 times the average premium. In other words, you could pay the $6,214 premium every year for 53 years before it would equate to the average claim’s payout. With 1 in 3 physicians likely to experience a claim, medical malpractice insurance is a no-brainer.
So, what are the benefits after all? Well, medical professional liability insurance offers a wide array of protections. This insurance protects your personal assets, your practice, and your patients, as well as compliance with state laws. Not only does it advocate for these things, but the numbers do as well. The risk of not having malpractice insurance far outweighs the reward. We saw above that when paying the average premium, it would take 53 years in a row before it would equate to the average claim’s payout.
Here at eQuote MD, we can provide you with the best malpractice coverage out there so that you maximize your coverage in a way that best protects your personal assets, practice, and patients.