FAQ for Malpractice Insurance for Doctors
Doctors perform a vital role in society, but unfortunate mistakes or instances of poor judgment can place a doctor in the center of a controversy or lawsuit. To combat the threat of retaliation, doctors purchase malpractice insurance that protects them from liability for improper or accidental behavior on the job. Most doctors first purchase malpractice insurance as students and continue coverage throughout their careers.
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Do I Really Need It?
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The majority of working physicians decide to purchase malpractice insurance rather than run the risk of going without it. If you live in a state that requires malpractice insurance, which most do, you'll need a valid policy before you can begin treating patients. Even if your state doesn't require malpractice insurance, certain hospitals and clinics may require you to have coverage of your own in order to visit your patients there. A single mistake or misjudgment on the job can lead to a lawsuit large enough to wipe out your practice, which is why malpractice insurance is so essential.
What Does it Cover?
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Malpractice insurance pays for your professional liability. This means that it covers you against costs and lawsuits associated with mistakes you make, including instances of negligence, as part of your job as a doctor. A typical malpractice insurance policy may provide up to $1 million of coverage for each claim up to a $3 million annual maximum. Malpractice insurance also covers your defense costs if a patient files a lawsuit against you. The insurance is always valid and does not only apply in your office or when you see patients for regularly scheduled appointments.
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What are the Rates Based On?
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The cost of malpractice insurance is based on a number of factors. One of the largest is the degree of risk involved in your daily work. For example, a surgeon is likely to pay a higher price for malpractice insurance than a general physician or a specialist who deals in illnesses and disorders that are not often life-threatening. The location of your practice also figures into the cost of insurance. Your experience as a doctor and your history of claims does not impact the cost of insurance, which makes malpractice insurance unlike many other forms of insurance.
What About New Legislation?
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Questions about malpractice insurance and its high cost are common news items, especially when health care reform efforts gain traction at the national level. Some proposed laws seek to restrict the damages patients can seek in cases of malpractice, removing frivolous lawsuits and the costs they incur. While such regulation, sometimes called malpractice reform, could reduce the cost of malpractice insurance for doctors (and, eventually, the cost of care for patients) it would not remove the need for doctors to have malpractice insurance to comply with state laws or as a means of professional security.
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