Prestizia Insurance Blog
Just like a stethoscope and other medical tools, malpractice insurance is a vital tool for every healthcare provider. The purpose of this insurance policy is to provide protection to the physician by giving financial assistance in the event of a malpractice lawsuit.
Medical malpractice coverage comes with several options, liability limits, and comprehensive clauses. To get the best malpractice insurance policy, here are five things to take into consideration:
1. There are two types of policies available. The first one is the occurrence-based policy, which covers the accidents that happened at the time of the policy term. It takes effect regardless of the date of the claim.
The other type of policy is the claims-made policy, which provides coverage to the claims filed at the time of the policy period and in the course of the policy term. Keep in mind that these two policies will not cover the accidents that transpired before the policy date.
2. Purchase a malpractice insurance policy that includes “consent to settle clause.” This is important as the insurance company is required to get your permission first when it comes to settling a claim filed against you. The permission should be in written form.
3. Premiums are different for the two malpractice policies. In general, occurrence-based policy is more expensive than claims-made policy. Starting from the day the occurrence-based policy is in effect, the premiums are usually set at a mature level. On the other hand, the premiums for claims-made policy start at a low price and gradually increase within five years.
4. Make sure the clause for costs of defense is “outside policy limits.” This means that the cost of defense does not affect the liability limits. For instance, the costs of defense are $150,000 and the limit of policy for every occurrence is $1 million. In such case, you can still cover a potential claim award, amounting to $1 million.
5. Buy tail coverage. If you have purchased a claims-made policy and then decided to drop it later on, paying for the tail coverage will continue the coverage for claims that happened at the time of the policy period. While the tail coverage protects a healthcare provider indefinitely, it only covers prior acts date, which is a specific practice period.
Tail coverage tends to be costly. In fact, it is three times more expensive than the annual premium. However, you need tail coverage to help you in any potential claims that you might be facing in the future.
As a healthcare provider, you should know that you need to protect yourself and your profession by buying malpractice insurance. At Prestizia Insurance Group, we aim to provide comprehensive insurance policies that makes your life easier. You can get more information about our products and services by calling our agency at (855) 436-6353. Get your free quote today.