Nine key tips for choosing entity medical malpractice insurance
When it comes to medical malpractice insurance, choosing the right policy is crucial for doctors and healthcare providers.
Medical malpractice insurance protects against claims related to professional mistakes, negligence, or accidents that result in patient harm. With lots of options available, selecting the right coverage can feel overwhelming. This article provides tips to help you make an informed choice.
1) Understand your needs
Before shopping for insurance, take a moment to assess needs. Consider medical specialty and the potential risks involved in practice. Some specialties carry higher risks, such as surgery or obstetrics, and require more comprehensive coverage. For example, a surgeon needs higher limits of liability than a general practitioner. Tailoring insurance to fit a specific situation ensures adequate protection.
2) Evaluate coverage limits
Always remember there are some states that have minimum insurance requirements, but it’s often wise to carry more than the minimum, especially in high-risk fields. Also, ensure the policy covers both per-incident and aggregate limits, protecting against individual claims as well as total claims over a policy period. Aim for a policy that offers enough coverage to handle the worst-case scenario.
3) Research the insurance carrier
Not all insurance companies are created equal, so it’s important to choose one with a solid reputation. That’s why you should research different carriers to see how long the company has been in business, the claims history, and customer satisfaction ratings. Plus, you should look for companies with experience working with healthcare professionals and a track record of providing reliable, timely payouts.
4) Consider the cost
Since cost shouldn’t be the only factor in choosing entity medical malpractice insurance, it plays a role. Premiums vary on specialty, location, and coverage limits. When comparing prices, ensure value for your money. A low premium seems appealing, but it could come with lower coverage or higher deductibles. Balance cost with the quality of coverage to make a sound financial decision for your practice.
5) Check for exclusions
Every insurance policy comes with exclusions where the insurer won’t provide coverage. Review the policy to understand what is and isn’t covered. For example, some policies may exclude claims related to certain procedures or conditions. If a high-risk procedure isn’t covered, there is no protection. Discuss exclusions with the insurance provider and ask for endorsement if additional coverage is needed.
6) Look for tail coverage
Tail coverage, also known as “extended reporting period coverage,” is an essential consideration when purchasing medical malpractice insurance. Without tail coverage, there’s a risk of being vulnerable to claims that arise after moving on. Some policies automatically include tail coverage, while others require an additional fee. Be sure to ask the insurer about it and include it in the insurance plan if necessary.
7) See for claims-made vs. occurrence policies
While choosing malpractice insurance, you’ll encounter two types of policies: claims-made and occurrence. A claims-made policy provides coverage for claims filed within the policy period, no matter when the incident took place. An occurrence policy covers for incidents that happen during the policy period, regardless of when the claim is filed. Occurrence policies are expensive but offer security.
8. Review the claims process
The claims process can be stressful and time-consuming, so it’s important to understand how an insurer handles claims. Look for an insurance provider with a streamlined and efficient claims process. Ideally, the company should have a dedicated claims team to guide you through the steps if a claim arises. Also, a provider with a good reputation for handling claims quickly and fairly will offer peace of mind.
9. Consult with your peers or broker
If unsure about which policy to choose, consider consulting with other medical professionals or a trusted insurance broker. Peers offer valuable insights based on personal experiences with malpractice insurance, helping navigate through various options. In addition, insurance brokers can compare policies from multiple carriers and find the best fit for a practice, negotiating favorable terms.
Protect your practice, ensure peace of mind
Selecting entity medical malpractice insurance needs careful consideration. From understanding your needs to weighing cost against value, you can make an informed decision. Pay attention to details like exclusions, tail coverage, and the type of policy to ensure comprehensive protection.
On top of that, the right insurance provides peace of mind, allowing a focus on providing quality care. Take the time to shop around and choose the option that best suits your practice. By following these tips, you’ll be on your way to securing the right coverage for medical malpractice insurance.
