All About Medical Malpractice Insurance

Medical malpractice insurance, or medical professional liability insurance, is something that every professional in the medical field should carry. In today's fast-paced health care environment, even the most trusted and experienced surgeon or medical caregiver can make a mistake that can alter the patient's life forever. Sometimes, even medical professionals who didn't make a mistake can find themselves on the other side of a courtroom.

If you work in the medical field, then you owe it to yourself to understand medical malpractice insurance and have the right type of policy to help protect your practice and your assets. Here is some important information about these policies from our medical malpractice attorney in Shallotte NC.

What is Covered by Medical Malpractice Insurance?

Medical malpractice insurance policies vary in their coverages, but most are designed to insure against claims of medical negligence and the policyholder's conduct as a member of a peer review panel. The latter feature protects the policyholder against lawsuits claiming that the defendant suffered a loss of income as a result of an adverse peer review decision made by the insured.

Who is Covered Under a Medical Malpractice Insurance Policy?

If you are a medical professional who owns a practice, then your policy should include coverage for yourself, your staff, and your business entity. Before choosing a policy, make sure that every member of your practice who deals with patients is covered against medical malpractice claims. It is important to understand that all policies have exclusions. For instance, claims involving conduct issues such as illegal conduct, sexual improprieties, fraud charges, or records alteration will usually not be covered by the policy.

What are the Usual Policy Limits?

Medical malpractice insurance policies usually dictate two limit amounts – one for the total amount paid for any one claim (the individual limit) and one total amount paid over the course of a full policy year (the aggregate limit). These numbers will usually be written as such: $1,000,000/$3,000,000. In this case, the insured will be covered for up to $1 million per individual case and up to $3 million per policy year.

What are the Differences Between Claims Made and Occurrence Policies?

In a "claims made" policy, the insured is covered as long as he or she continues to pay their premiums for the initial policy and any renewals. If the insured does not pay their premiums, coverage will stop for any cases the company did not accept during the policy's term. A "tail" can be purchased at the time of the policy's cancellation that will allow the coverage to be extended; thereby allowing the medical professional to file a claim even after their policy is officially canceled. The cost of this tail is often between 100% and 500% of the cost of the policy's mature premium and it is usually due in one payment at or shortly after the time of cancellation.

An occurrence policy, on the other hand, is complete at the point of purchase and it provides coverage even after the policy is canceled as long as the professional's conduct during the policy's active period was acceptable. As a result, an occurrence policy is usually preferred, although they are not available in every state.

Contact Bain & Rodzik's Medical Malpractice Attorney in Shallotte NC

Medical malpractice cases are among the most complex in the legal field. If you believe that you are a victim of a medical professional's negligence, then contact Bain & Rodzik's medical malpractice attorney in Shallotte NC as soon as possible. Statutes of limitation do apply to medical negligence cases, so don't hesitate and call us today at 910-762-1199 to schedule a free initial consultation. With Bain & Rodzik, you don't pay unless we win your case!