Medical malpractice insurance is important for physicians or any healthcare provider. It protects medical practitioners from the costs of legal defense and settlement in a malpractice lawsuit. Like any insurance policy, there are limits, options, and clauses when it comes to the coverage. With that, here are some tips for getting the best malpractice insurance coverage out there.
Choose the right type of malpractice insurance.
There are two types of malpractice insurance policy to choose from:
- Claims-made policy. This policy typically covers the policyholder for claims made during the policy term.
- Occurrence-based policy. This policy usually covers incidents occurring during the policy’s term, regardless of when the claim is made.
Neither of the two policies covers incidents that have taken place before the policy was bought.
The costs differ according to the policy you get.
With a claims-made policy, the premiums usually start low and gradually increase in the course of five years. Meanwhile, with an occurrence-based policy, it is priced at a mature level from the day the policy started. That means the former is usually cheaper than the latter.
Get insurance for defense costs outside the limits of the policy.
That means that the defense costs will not eat away the limits of your policy. For instance, if you have a policy limit of $500,000 per occurrence and the defense cost is at $50,000, you’d still have $500,000 to cover the claim.
Choose a policy with “consent to settle” clause.
This clause typically requires insurers to get a written permission to settle a claim against you and your practice.
Consider getting tail coverage.
If you decide to get a claims-made policy and later decide not to renew it, buy tail coverage. This coverage will cover you from claims made for incidents happening during the policy period even if the medical practice has stopped. It usually provides indefinite coverage for a physician and covers a certain period of practice referred to as the prior acts date.
Whether you’re shopping for malpractice insurance or other types of coverage for professionals, Professional Insurance Plans is here to help you. We specialize in providing insurance to specific industries at a competitive price. Get a free quote from us and discuss your options with us now. Call us at (859) 543-8955