Medical malpractice insurance transfers professional liability to an insurance company upon contract signing. This policy aims to protect healthcare providers and practices from damage risks. As a physician, you might enter medicine without knowing if you will be involved in a malpractice suit. However, they often happen; according to the American Medical Association (AMA), 34% of American healthcare providers have been sued due to malpractice allegations. Therefore, it is imperative to have the correct malpractice insurance to protect yourself from the possibility that an unfortunate event might happen. Here are some factors to consider when purchasing medical malpractice insurance.
1. The Company
As explained by Obral Silk & Pal Personal Injury Lawyers, you should choose an insurance company with a solid reputation and should have the financial solvency and resources to remain in operation for a significant period. Buy medical malpractice insurance from a firm with extensive experience and lengthy history in malpractice insurance.
2. Defense Costs
Medical malpractice policies can include or exclude defense costs. Inclusive plans allow the insurer to deduct defense costs from the available liability limits. With complete plans, the company pays the costs without liability coverage. The last type might cost more, but it’s worth the investment.
3. Claim Trigger
According to Harris Personal Injury Lawyers, medical malpractice policies contain incident and demand triggers. An incident trigger allows the insurance company to count the claim twice. For a demand trigger, you only have one option.
4. Liability Limits
You have two limits to consider when purchasing an insurance policy. The single occurrence limit is how much the company will cover for one claim. The aggregate limit is how much the insurance company will pay on your behalf throughout the year.
5. Consent to Settle
Consent to settle refers to your ability as the healthcare provider to decide whether or not a settlement is reached in the event of a malpractice claim. With consent to settle, you can accept or reject a settlement offer. Without consent, the insurer can settle a claim without your approval. This can be problematic because you may have differing views on the settlement terms. Therefore, you should consider purchasing medical malpractice policies that include consent to settle provisions. This will give you more control over the outcome of any malpractice claims and ensure your interests are protected.
Price is certainly a factor to consider when purchasing medical malpractice insurance. While choosing the policy with the lowest premium may be tempting, it is critical to remember that a policy with a lower premium may offer a different level of coverage than a policy with a higher premium.
You should also consider the deductible, the amount you will pay before the insurance company covers costs. Policies with lower premiums may have higher deductibles. It could increase out-of-pocket expenses for the healthcare provider in a claim.
There are several other factors to consider when shopping for a medical malpractice insurance policy. Like any other purchase, you should be an informed buyer. Consider the individual circumstances before settling on a policy. The healthcare environment, which the medical malpractice insurance industry depends on, is constantly changing; staying updated about these changes is important.
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