Malpractice Insurance Policies

Malpractice insurance policies protect physicians if they're sued.

Nearly every medical services provider obtains malpractice insurance coverage. These policies provide payment in the event an insured physician is ordered to pay a patient who wins a malpractice suit. Some malpractice products pay legal fees incurred while defending claims.

Geographically Priced

Malpractice insurance carriers determine premiums based in large part on the geographic location of the physician or facility. The provider's industry experience has little to no bearing on the cost of a policy, as carriers tend to focus more on population density.

Consideration of Expertise

A doctor's area of expertise plays a role in determining malpractice insurance costs. Certain medical specialties pose a far greater risk than others, and those physicians are charged higher premiums to offset this increased liability.

Rising Premiums

As of 2010, malpractice policy premiums continue to skyrocket. Such drastic increases result from the significant number of new lawsuits, and the rising sizes of damage awards. As the number of suits continues to rise, policy premiums increase proportionately.

References

• The Robert Wood Johnson Foundation: Understanding Medical Malpractice Insurance