Physicians Professional Liability Insurance

Professional liability insurance, also known as malpractice insurance, is a critical safeguard for physicians in the United States. A recent American Medical Association (AMA) study found that nearly one in every three physicians will face a lawsuit for medical malpractice at some point in their careers. This statistic illustrates that legal challenges in medicine are not uncommon, even for highly skilled physicians, and being sued is not necessarily an indication of medical error. The AMA’s findings also reveal that while a significant portion of malpractice claims against physicians do not result in a determination of fault, when cases do go to trial, they can result in large compensation payments being awarded to plaintiffs.

Physicians Professional Liability Insurance can include:

Option to include general liability insurance
Coverage limits of up to $2 million per individual claim
Complete authority to approve settlement decisions
Protection for telemedicine and telehealth services
Legal defense coverage for professional license issues
Legal defense expenses covered in addition to liability limits
Defense coverage for allegations of sexual misconduct
Protection for HIPAA-related privacy violation claims
Portable coverage available 24/7, applicable in volunteer work, telehealth roles, per diem, or moonlighting assignments

What does Professional Liability Insurance cover?

Professional liability insurance for physicians typically includes coverage for legal fees, settlements, and judgments in malpractice lawsuits. It addresses claims of negligence and errors in healthcare delivery. Key aspects like arbitration costs, medical damages, and punitive and compensatory damages are often covered.

Why is Tailored Coverage Important?

Given the diverse nature of medical practices, one-size-fits-all insurance coverage is inadequate. Physicians are advised to collaborate with specialized insurance brokers, like Westwood Insurance Group to secure a policy that is tailored to their specific practice needs and risk exposures.

Some things to consider:

What coverage limits do you want? The most common limits are $1 million per claim and $3 million total for the claim period, however your particular state, or the medical organization you work for may have different requirements.
Do you need insurance to cover claims made during the insured period or occurrences? Occurrences coverage will cover you even if the claims are lodged after the period of insurance, provided the event being claimed for occurred during the insured period. For instance, if you are retiring at the end of the year of coverage, and you have a claims made policy, you may want to purchase tail coverage, in case claims are lodged after you retire.
Do you want your policy to include a “consent to settle” clause, allowing you to approve a potential settlement, or to withhold approval if you don’t like the terms of the settlement.