Medical malpractice insurance, also commonly referred to as medical professional liability insurance, is basically a form of professional liability insurance. It’s used for protecting licensed healthcare professionals such doctors, nurses, and dentists among others as well as healthcare facilities from responsibilities related to wrongful medical practices that have resulted in injury or harm, property damage, medical expenses, and legal costs related to medical malpractice claims.
What Does a Typical Medical Malpractice Insurance Policy Cover?
The majority of policies cover the conduct of a doctor as an esteemed member of a peer review panel. Usually, a doctor is open to a lawsuit if they believe that the doctor’s conduct was completely inappropriate or resulted in the claimant losing his or her income due to the alleged malpractice claim, explains Gracey-Backer, Inc.. Additionally, the doctor could still be sued even if he hasn’t digressed from his peers’ standard level of care. While the doctor could win the lawsuit, the entire process is extremely time-consuming, stressful, and very costly. If he’s covered by medical malpractice insurance, his policy could cover the costs for the court, arbitration, settlement, lawyers’ fees, medical damages, as well as compensatory and punitive damages.
However, liability related to alleged criminal acts, sexual harassment, lab or hospital administration, misrepresentation while applying for medical malpractice insurance, as well as intentional revisions of medical records.
Ensuring that Your Coverage Matches Your Practice
Most medical insurance policies offer coverage limits that range from $100,000 up to $300,000 as well as $1 million up to $3 million. The first amount represents the maximum amount an insurer will pay for every claim while the policy is in effect, which is typically for one year. The succeeding amounts represent the maximum amount an insurer will pay for the collective claims in the same period. In the event that there are judgments or claims against you, you’ll be the one to pay for all damages in excess of your medical malpractice insurance policy limits, explains a top insurance provider in Florida.
In some states such as Texas, California, and Florida, there are damage caps, which means that you might not require higher policy limits in these states. The coverage also likewise stipulates all covered incidents, so verify with your provider if you’re covered for the entire scope of your clinical activities. In addition, if you’re a shareholder or owner of a practice, confirm that your coverage also applies to your employees or professional corporation.