Guidelines to Choose a Good Medical Malpractice Insurance Coverage
Medical malpractice cases that involve medical record review arise despite the best efforts put in by physicians when treating their patients. Physicians need proper medical malpractice coverage to protect themselves and their assets.
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Medical malpractice cases arise despite the best efforts put in by physicians when treating their patients, and can be quite devastating. Malpractice attorneys with the support of medical review services review such cases for legal merit and determine whether there has been a breach of duty/standard of care. Healthcare providers invest a lot of time and effort pursuing their profession and they need medical professional liability insurance to ensure protection for themselves and their assets in case a claim or lawsuit arises. The American Medical Association points out that more than 65% of doctors age 55 or older have been sued for malpractice at least once. This highlights the importance of obtaining coverage for malpractice. Medical malpractice insurance typically covers the healthcare professional for the services they provide, or in some cases, fail to provide. The company and coverage you choose must ideally suit your needs and provide the best possible protection. The plan should clearly specify what professional services it covers. The two types of professional liability coverage are: •
Direct liability: This plan covers you for the services you personally provide.
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Vicarious liability: This provides coverage for people (such as employees, volunteers, students) for whom you may be legally viable if you are providing supervision and direction.
It is important to choose the right coverage because poor malpractice coverage can lead to thousands of dollars in unnecessary premiums. Moreover, you may also be forced to settle the case even when you have a legitimate chance at winning it and protecting your reputation. What are the things to keep in mind when choosing medical malpractice insurance coverage? •
Talk to colleagues or do a thorough search on the internet for information regarding carriers: This is a good approach, according to experts in the field. This approach is mostly adopted by young physicians. Typically, older /mid-career physicians choose carriers who have been in the marketplace for many years, or make the choice with the help of an intermediary such as a financial adviser or insurance broker. Whatever method you choose, be cautious and pay attention to the laws of the particular jurisdiction you practice in.
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Review the insurer’s history: This will help understand how aggressive the carrier is in fighting claims. The insurer’s history can be obtained from the aggregated claims information published by the PIAA (Physician Insurers Association of America) and actuarial firms. Besides, many carriers publish their own claims data including trial results, claims settled and dismissals.
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Check the insurer’s rating: According to Bill Fleming, chief operating officer of The Doctors Company, a medical malpractice insurance company based in Napa, CA, the carrier should have an A.M. Best rating in the “A” range. Also, be aware of the class size from I to XV – the smaller the number, the smaller the company. Even with a rating in the “A” range, a small carrier could face a devastating impact in the face of a few large losses. Ideally, the insurer should be one with history and experience in the physician’s own state and specialty.
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Do not assume that you are covered for anything: A common mistake doctors make is not realizing that they are only covered for certain procedures. Your malpractice insurance rate is determined based on your medical specialty and the level of risk involved. You may be denied coverage if you neglect to state all of the procedures you perform regularly or accidentally omit to include a procedure. Make sure to obtain a complete copy of your medical malpractice insurance policy and other relevant documents, and read all of these documents carefully. Ensure that all your doubts are cleared. In case you wish to perform additional procedures, first contact your carrier and obtain written confirmation that your coverage terms have been altered.
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Pay attention to policy exclusions: Medical malpractice coverage commonly excludes benefits for cases associated with slander, libel, sexual misconduct or criminal acts. Fee disputes and related issues are also not covered because they are treated as a contract issue and not a valid malpractice claim. In addition, the policy may also exclude services performed on a volunteer basis, as well as those that have territorial restrictions that limit your ability to attend to patients who are visiting from another state.
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Do not leave gaps in your coverage dates: Written on a claims-made policy form, medical malpractice insurance provides coverage only if the adverse incident occurred after a policy’s retroactive date and reported while the policy is in effect. Physicians that drop a claims-made policy must purchase tail coverage, or an extended reporting endorsement to enjoy protection from claims that may arise later.
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Be cautious of policies that offer numerous one-year discounts: This is important because prices will almost always increase considerably, and physicians may find themselves paying more than what they were first led to believe. If the physician practice is multistate or may become multistate in the future, it is important to choose a carrier that is licensed in the states where a physician may practice, including telemedicine visits.
www.mosmedicalrecordreview.com
(800) 670 2809
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Ensure that you are frank with the underwriter: Make sure that issues such as prior claims, negative news or social media, and changes in practice locations are made clear at the beginning itself.
As a medical review solutions provider to medical malpractice attorneys, we understand that attorneys would advise physicians to evaluate their malpractice insurance every year and keep it up-to-date. This will help ensure there are no gaps in coverage and you have coverage from one term to another. When buying insurance, price alone should not be the main consideration. Apart from pricing, insurance companies compete on other factors as well. There are carriers offering value-added services such as policy review, risk analysis, online training and other services to compete and become distinctive.
Disclaimer The information provided in this blog is intended only to provide general guidelines. It is not intended and should not be construed as legal advice. For professional advice on your insurance policy, always consult with an attorney.
www.mosmedicalrecordreview.com
(800) 670 2809