What is medical malpractice insurance?
Medical malpractice insurance is a type of liability policy that protects healthcare providers (doctors, nurses, and other medical professionals) against negligence-related lawsuits. It can be a standalone policy, or combined with general liability insurance.
Its purpose is to protect you against a successful lawsuit. A judgment can cost hundreds of thousands, if not millions, of dollars in legal fees, not to mention the emotional toll on you and your loved ones.
What does it cover?
Coverage can vary from one physician to another, depending on factors like age, practice location, and the number of procedures performed.
Your defense in court
Medical malpractice insurance covers the costs associated with defending you in court.
Settlements
It also covers the costs of a settlement if the patient wins the case.
Not all brokers are built the same
Trained by underwriters and attorneys
There are many insurance brokers that do not have the knowledge or training to provide the appropriate coverage. At E&Y, we have been trained by medical malpractice insurance underwriters, health care attorneys and personal injury attorneys to learn the ins and outs of medical malpractice insurance.
Occurrence vs. claims-made coverage
Two common policy types, and the difference matters.
Occurrence
Covers the physician if the patient’s claim relates to an incident that occurred during the policy year, no matter when the claim is reported. If you were insured in 2020 and a lawsuit is filed in 2022 over a 2020 incident, you are covered. It is more comprehensive, at a higher cost.
Claims-made
You must be insured when the incident occurred and when the lawsuit is filed. A lawsuit filed after the policy ends will not be covered. Many people with claims-made coverage should get tail insurance, a supplemental policy that provides coverage for previous time periods.
Which doctors are sued most?
Several factors determine who is most likely to be sued: the type of procedure you perform, your patient/staff ratio, and where your practice is located.
Most often sued
OB/GYNs, surgeons, orthopedists and radiologists. Surgery, internal medicine and obstetrics are most often sued.
Less likely
Psychiatrists and pediatricians are less likely to face a malpractice suit.
Understand it before you need it
Ultimately, it is important to understand the importance of medical malpractice insurance before you even begin to look for a job in the medical field. It protects you if a patient sues you for negligence and wins, and can help protect your practice against legal action that may be unfounded.