Can a healthcare provider purchase medical liability insurance without thinking carefully about what would give the best protection? Does one policy fit all practitioners in all instances? No, insurance policies must be researched and tailored to suit different practices and providers. Here is what to know about types of medical liability insurance and how a wise insurance broker can tailor your policy to suit you.
What is Medical Liability Insurance?
Medical liability insurance is also called medical malpractice insurance. It financially protects a healthcare provider in the event that a patient files a legal claim.
Patients and their attorneys allege negligence, harm or failure to hold to accepted standards of healthcare. Medical liability insurance covers legal fees, settlements or judgments and other related expenses.
Some states require healthcare providers to carry medical liability insurance. Other states do not.
However, the numbers of lawsuits filed against doctors annually in the United States speak for themselves. Quality malpractice insurance really is a must-have.
The American Medical Association states that about 34 percent of physicians in the United States have been sued at some point by patients. While many malpractice lawsuits do not result in judgments or payouts, many do. The payouts can be catastrophic.
Additionally, even when lawsuits are dropped, dismissed or otherwise resolved, the legal fees, time lost and mental anguish impact physicians tremendously. In short, whether your state requires you to have medical liability insurance or not, it is just smart to purchase it and to make sure that it fits your practice needs.
Types of Medical Liability Insurance
By definition, medical liability insurance comes in two main types: occurrence-based and claims-made. There also are what the insurance industry calls hybrid policies. Here is what to know about them.
Claims-made Policies
This type of policy covers claims made during the time the policy is active. This means that if a claim is filed after the policy has expired or was canceled, the claim will not be covered. Keep this in mind when deciding whether to purchase, renew or switch medical liability insurance policies.
Occurrence-based Policies
Occurrence-based policies cover incidents which happened during the time the policy was active. The coverage remains active regardless of when the claim is filed. So, even if a claim is filed after the policy has expired, you still will be covered as long as the incident happened while the policy was in effect.
Hybrid Policies
A hybrid policy combines elements of both claims-made and occurrence-based policies. It covers claims made during the time the policy is active. It also includes a “tail” coverage period for claims filed after the policy has ended. This type of policy provides more comprehensive coverage but may come at a higher cost.
Choosing the Right Policy for Your Practice
When deciding on a medical liability insurance policy for your practice, consult an insurance broker. An insurance broker is a company which analyzes the risks you and your practice have. For instance, you and your broker will consider these factors (among others):
- Your specialty–neurosurgery, pediatrics, internal medicine, oncology and so on
- Your state
- Your locale or neighborhood and its population density
- The scope of your practice (the services you offer, including telehealth options)
- Number of years in practice
- Single or group practice
- Your budget
- Your annual income and personal assets
- Number of staff members you have
- Any history of past medical malpractice claims
- Your participation in risk management programs
- Whether you work full- or part-time
As you discuss these factors with your insurance consultant, he or she will tailor your insurance policy to meet your individual risks and needs. Then, the broker should “shop” quality insurance carriers to find options which protects you and which you can afford.
Be sure to purchase the highest quality coverage which fits into your budget. Also, annually, you should review the policy you do purchase to ensure it fits your patient volume, location, number of staff members or partners and more.
Medical Liability Insurance Broker in St. Louis, MO
At eQuoteMD, our topnotch insurance consultants work with healthcare providers in all 50 states, practicing in every medical specialty. We deal only with reputable A+ companies which give our customers the coverage they need at reasonable rates.
Our consultation and quotes are complimentary. So, why not contact us about your medical liability insurance options?
Call eQuoteMD at (855) 823-5283 or request more information here. We look forward to serving you soon.
