What is Medical Professional Liability/Medical Malpractice Insurance?
Professional liability is negligence by a health care provider resulting from a failure to use due care or where the standard of care falls below what is expected from a person in a particular profession. A medical professional liability insurance policy covers bodily injury or property damage as well as liability for personal injury such as mental anguish. Most policies also provide coverage to the physician for the costs in defending a claim.
Understanding a Professional Liability Policy
- What are the policy exclusions? Does the policy provide coverage for activities outside of direct patient care? For example; supervision of medical students or interns or providing medical care as a Good Samaritan.
- Defense Costs inside or outside the policy limits. If your policy pays defense costs “outside” the limits of liability then your defense costs do not erode the limits of liability of your policy.
- Defense Costs Deductible or Maximum. Does the policy have a defense cost deductible where the policy holder pays defense costs up to the deductible amount? Is there a limit on the amount of defense costs the policy will pay?
- Claims-made versus Occurrence Coverage. A “claims-made” policy covers claims reported during the term of the policy, unless there is a “retroactive” date specified. Occurrence policies only cover claims that occurred during term of the policy.
- Tail Coverage. A claims made policy will not cover a claim after termination of the policy unless tail coverage is purchased. Tail coverage is needed for claims reported after the end of the policy period.
- Prior Acts Coverage/Retroactive Date. In lieu of tail coverage, “nose” coverage, or prior acts coverage, can be purchased as part of a new replacement policy. A claims-made policy with prior acts coverage covers claims back to the retroactive date written into the policy.
Why The Armstrong Company for your Professional Liability Insurance
There are significant differences in professional liability policies and insuring companies. The Armstrong Company Insurance Consultants represents several professional liability carriers and we understand the complexities of medical malpractice insurance. Even if you just renewed with your current insurance carrier, it’s never too early to contact us. You can take advantage of the benefits of being an Armstrong Company Insurance Consultants client prior to your coverage renewal.
Let our experienced license representatives help determine your coverage needs. Click here to see a list of the major coverages we offer. If something is not listed, just ask and we will provide you with the details. The Armstrong Company Insurance Consultants understands the professional needs of our customers. The right coverage for you is unique – call us at 866-990-9286 or contact us via our “Request a Quote” online today to find out how to protect your business and your future with the right insurance. We are here to work for you!