Arguably the most important aspect of a medical practice is the malpractice insurance that protects it. Malpractice suits have become increasingly common and there are rarely any consequences for those who bring them frivolously.  Whether you are an independent physician, medical group, or med spa, you can ill afford to carry insufficient malpractice coverage. 

Malpractice insurance has many variables.  All of which should be considered and understood prior to purchasing your policy. Deductibles, limits of liability, indemnity vs. expense, admitted vs. non-admitted, and consent to settle clauses are just a few of the many important factors that will determine coverage and price. 

Individual Physicians:

As an independent physician, you are responsible for carrying your own malpractice insurance policy. When considering which policy is best for you, it can seem overwhelming when presented with the seemingly endless options.  The first thing to determine when shopping for malpractice insurance is whether you qualify for an “Admitted” carrier’s product.  Admitted carriers are those that are approved by your state’s insurance department.  This has many advantages including financial security provided by the state, lack of taxes & fees charged at purchase, no deductible, and generally a free retirement tail program. 

If your scope of practice, loss history, or prior medical board actions are preventing you from purchasing an admitted policy, the non-admitted market has many reputable and financially sound carriers that will offer coverage.  If purchasing a policy from a non-admitted carrier, it is imperative to obtain a financial grade from “AM Best”.  This will inform you of the financial strength of the carrier as well as the long-term outlook.  As you will not be supported by the state’s indemnity fund in the event your carrier becomes insolvent, confirming your carrier’s financial stability is vital. Equally vital is the knowledge of non-standard market policies possessed by your agent. 

Medical Groups

Medical groups are often comprised of multiple physicians, ancillary health professionals, and administrative staff.  In this environment, it is imperative that the limits of liability are adequate to cover all potential claims.  An important fact to consider is that attorneys will often advise the claimant to name not only the physician(s), but also the group entity as well.  This poses significant financial risk if not properly insured. 

Medical groups may also be exposed to an errors & omissions claim as well.  If the claim is determined to be logistical or diagnostic in nature, the malpractice insurance policy may not respond.  An in-depth understanding of the practice locations, staff, and physicians is crucial when insuring medical groups.  From general liability, property, malpractice, workers compensation, and errors & omissions insurance, medical groups face multiple exposures and must be properly insured.

Key Variables

To ensure that a malpractice claim does not cause serious financial harm to you or your practice, the following variables should be considered:

• Is my policy Claims-Made or Occurrence?
• Are my defense costs within the limits of liability?
• What are my limits of liability?
• What is my retroactive date?
• Is my demand trigger written or incident sensitive?
• Do I have a consent to settle clause?
• Does my deductible apply to indemnity AND expense?
• Is my carrier Admitted?
• Do I have a plan for Tail Coverage?

If any of these questions are unfamiliar to you, contact the malpractice team at Swarts, Manning & Associates today.  You’ve invested countless hours and financial resources into your medical career.  Protect that investment by securing the proper malpractice insurance suited to your needs.