Every healthcare professional needs medical malpractice insurance because lawsuits could arise despite their best intentions and adherence to the standard of care. From legal defense costs to settlement or judgment costs, malpractice claims can be financially devastating for doctors, nurses, and other medical practitioners.

Knowing how to choose medical malpractice insurance is crucial to protecting your career and financial stability. There’s much to consider, from policy limits, deductibles, and tail coverage to the insurer’s reputation and financial strength.



Here’s a post outlining essential tips for picking the best malpractice insurance for certified RNAs, doctors, and other healthcare professionals. Let’s start with the basics.

Tips-for-Choosing-Malpractice-Insurance-for-Medical-Practitioners

Understand the Basics of Medical Malpractice Insurance

Before discussing the tips, it’s essential to understand medical malpractice insurance and its coverage. Simply put, medical malpractice insurance is a professional liability insurance that shields healthcare professionals from lawsuit-related costs arising from their work.

It typically covers legal defense costs, settlement or judgment costs, and damages resulting from claims of professional negligence or errors in diagnosis/treatment. Some policies may also cover licensing board proceedings and other legal expenses.

Medical malpractice insurance gives healthcare professionals peace of mind, enabling them to practice medicine without fear of financial ruin.

Let’s learn some common terms that apply to this sort of insurance.

Claims-Made vs. Occurrence Policies

A claims-made policy covers claims that occur and are reported while the policy is in effect, regardless of when the incident happened. If a patient files a claim for an incident that occurred five years ago, but you had a claims-made policy at the time of reporting, it will still be covered.

In contrast, an occurrence package only protects you for claims coming from that period specified in your insurance policy. If you switch to another insurer or retire after your policy expires, future claims related to incidents during that coverage period will be covered.

For example, you can be sued two years later after retiring for a patient you treated while still practicing. If that time you treated that patient you had an occurrence policy, you’ll be covered for the claim even in your retirement.

Tail Coverage

Tail coverage, alias extended reporting endorsement, is important for both types of policies. It provides coverage for claims filed after the policy has expired or been canceled.

For example, suppose you switch from a claims-made policy to an occurrence policy. In that case, you’ll need tail coverage for future claims related to incidents during the claims-made policy period. Similarly, if you retire and cancel your policy, tail coverage can protect you from future lawsuits related to past incidents.

Here’s more on how medical malpractice insurance works. Now, let’s get to the tips.

Tips for Choosing the Best Medical Malpractice Insurance

1. Assess Your Specific Needs as a Healthcare Professional

Though healthcare officials face almost the same risks, their careers vary depending on age, experience, and specialization. For example, nurses and physicians may need different coverage limits or special endorsements for their respective fields.

Two professionals in the same specialization will also have different goals when shopping for insurance. For example, an independent practice owner will have different needs than a hospital or medical facility employee.

Experience and past claims history also play a role. The longer you’ve been in service, the more your risk of getting sued for past or present mistakes.

As such, healthcare professionals with more experience may require a claims-made policy as long as they continue practicing. But if they’re about to retire, an occurrence policy plus tail coverage would be more suitable.

Younger healthcare professionals may benefit from an occurrence policy, especially if their employers don’t pay for their tail coverage. If you’re young and expect a long tenure, this policy may also save you money.

Remember, risks vary depending on your specialty, so a plastic surgeon’s premiums will be higher than what a primary care physician might pay.

2. Compare Insurance Carriers and Policies

Shopping around and comparing policies from different carriers is essential, whether you’re working with a malpractice broker or looking for insurance on your own. It’s one of our top tips on lowering expenses for medical malpractice insurance.

Each carrier offers different coverage limits, deductibles, endorsements, and pricing structures. Most importantly, probe their history of handling claims.

Go over reviews and ask colleagues to help you better understand how each carrier handles claims. Ideally, you want a responsive, transparent insurance company with an excellent track record of defending its clients in court.

It would help if you also compared the financial stability of different carriers. You want to choose an insurance provider that can cover any potential claims in the future.

For example, Professional Insurance Plans serves over 3,000 healthcare providers nationally, with 80% of claims closed without payments and a 90% trial win rate. That demonstrates our experience and financial stability in handling malpractice claims.

3. Evaluate Policy Costs and Coverage Options

When comparing policies and carriers, looking beyond just the price is essential. While cost is a significant factor, it shouldn’t be the only deciding factor when choosing malpractice insurance.

Check and compare the coverage limits and deductibles offered by each policy. A lower premium means lower coverage limits or higher deductibles, which could cost you more in the long run.

Coverage limits determine the highest amount an insurance company will pay for a claim. Higher limits provide more protection but also come with higher premiums.

Deductibles are the out-of-pocket expenses you must fund before coverage kicks in. A lower deductible means less out-of-pocket expenses, but it also results in higher premiums.

Evaluating your personal risk tolerance and choosing a policy with appropriate coverage limits and deductibles is crucial. When making this decision, consider factors such as your specialty, location, patient population, and potential risks.

Clarify coverage inclusions like legal defense costs, settlements, and judgments. Some policies may have a separate limit for each category, while others may have a combined limit.

4. Check for Additional Features or Coverage Options

Some malpractice insurance policies offer additional features or add-ons that can provide extra protection. These may include cyber liability, regulatory defense coverage, license protection, and employment practices liability.

Cyber liability insurance protects against cyberattacks and data hacks, which are becoming increasingly common in the healthcare industry. Regulatory defense coverage covers legal costs related to government investigations or audits.

License protection provides coverage for defending your professional license in case of a complaint or investigation. Employment practices liability covers claims made by employees for wrongful termination, discrimination, harassment, or other workplace-related issues.

Depending on your needs and financial situation, decide which additional features are must-haves. While they may attract extra costs, their long-run value is priceless.

5. Understand Policy Terms and Conditions

Before finalizing your malpractice insurance policy, thoroughly review the terms and conditions. Understand the coverage limits, exclusions, and any applicable restrictions.

For example, some policies may have a consent clause, meaning the insurance company must approve any settlements or judgments. Others may have a tail coverage provision, allowing you to file claims after your policy has expired for incidents that occurred during the policy period.

Some policies have a “retroactive date,” meaning they only cover claims made after a certain date. Clarify this with your insurer to avoid any gaps in coverage.

Additionally, understand how your premiums may change over time. Some policies offer “claims-made” coverage, meaning they only cover claims made while the policy is active.

If you switch insurers or cancel your policy, you may lose this coverage for previous incidents.

6. Seek Professional Advice

The malpractice insurance market can be tricky to navigate, especially for first-time buyers. We always advise that you seek advice from a professional insurance agent or lawyer to ensure that you understand your policy and are adequately protected.

A seasoned agent helps to evaluate your risk exposure, determine the appropriate coverage limits, and explain any complex terms or conditions. They can also negotiate better rates or additional features for your policy.

Furthermore, lawyers will protect you from potential legal issues down the line. They review your policy, alerting you to any areas of concern or advise you on how to handle claims per your policy.

Working with an experienced agent or broker, such as Professional Insurance Plans, can alleviate the stress of buying malpractice insurance and give you peace of mind, knowing that you have the right coverage.

Here’s what to look for in a malpractice company or agent.

Ultimately, The Best Medical Malpractice Insurance Policy Depends on You

There’s no one-size-fits-all policy for malpractice liability insurance. Every healthcare professional has different needs and exposures, so carefully weigh your options, and work with a trusted agent or broker.

Remember, periodically update your coverage as your practice grows and your risks change. Most importantly, ask questions or seek professional advice along the way.