Guest Post – By the team at Treloar & Heisel, our insurance partner
Often required by the state where you work, malpractice insurance can protect you and your assets should you be named in a malpractice claim. This policy is often considered crucial for medical professionals to obtain as soon as possible.
Here, we will discuss what you need to know about this vital coverage and what to consider when you are obtaining a policy.
What Is Malpractice Insurance?
Malpractice insurance — also called professional liability insurance — is considered a risk management tool that can be used to cover expenses that arise should you face a claim.
A malpractice claim may include but is not limited to:
- Breach of contract
- Negligence
- Non-performance
- Failure to render services
Malpractice insurance coverage may assist with legal defense as well as fund payments in the case of a settlement. Beyond this, policies may differ depending on your chosen insurer and policy type.
Claims-Made Policies vs. Occurrence Policies
Claims-Made Coverage
With a claims-made policy, the coverage is only triggered if the policy is still in effect when the claim is made. You will want to ensure you don’t have coverage gaps should you switch insurance companies since the policy date is likely to determine the coverage, as opposed to the date of the incident.
Occurrence Coverage
In contrast, occurrence coverage is triggered based on the date of the incident, not on the date of the claim. Even if the policy terms end before a claim is made, the policy may still respond to any incident that occurred during the dates of coverage.
What Factors Impact the Cost of Malpractice Insurance?
In a research article published by The New England Journal of Medicine, results found that “By the age of 65 years, 75% of physicians in low-risk specialties and 99% of those in high-risk specialties were projected to face a claim.” With this in mind, it is not about whether you need malpractice insurance, but rather about what to expect from your policy in terms of coverage and cost.
A number of factors can contribute to the cost of malpractice insurance, including:
- The type of coverage
- The number of claims against you
- Length of your career
- Your office location
- Per incident and aggregate limit on claims
Typically, if you own your practice, you are responsible for obtaining a policy. Keep in mind that if your business was to be named in a lawsuit, you may need to rely on a separate insurance type — entity malpractice insurance — to help protect your practice entity.
Finding Suitable Malpractice Insurance for Doctors
As a medical professional, it can be difficult to find an insurer who understands and can meet your needs. Before you obtain a policy, research your options and consider asking the insurer these questions:
- Have you worked with medical professionals before?
- How would you tailor my policy?
- What additional insurance options can you offer to help protect my career growth?
Another key component of coverage is the consent to settle. With pure consent to settle, you must give the insurance company your written consent before they can settle a claim.
An experienced insurance provider can lay out the framework for protecting your livelihood in a way that takes your specific circumstances into account.
Work With Advisors Who Specialize in Insurance for Medical Professionals
When considering a malpractice insurance policy, never hesitate to ask questions and learn about the terms and conditions. Ensuring your policy fits your needs can facilitate a smoother process in the event of a lawsuit.
You’ll want to remember that a malpractice insurance policy is just one tool in your kit that can help protect you, your career, and your business. That is why choosing your insurance provider is seen as equally important as choosing the terms of your policy.
Treloar & Heisel works with you throughout your career to ensure that you are properly protected so you can focus on reaching your goals.
To learn more, speak with Treloar & Heisel.
For financial assistance, connect with our team.
Treloar & Heisel and Treloar & Heisel Risk Management are divisions of Treloar & Heisel, Inc.
Insurance products offered through Treloar & Heisel, Inc.
Treloar & Heisel, An EPIC Company, is a financial services provider to dental and medical professionals across the country. We assist thousands of clients from training to practice and through retirement with a comprehensive suite of financial services, custom- tailored advice, and a strong service-focused support team.
For advice on the discussed topics, please review with your licensed advisor
