While only seven states have legal mandates for doctors to carry liability insurance, it is highly advisable to have this coverage. It plays a critical role in safeguarding you, your practice, and your employees from potentially significant financial repercussions due to professional errors. Having liability insurance ensures you are prepared to address unexpected challenges while maintaining the integrity of your medical practice.
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States that require a minimum level of malpractice insurance are: CO, CT, KS, MA, NJ, RI, and WI.

Medical malpractice insurance typically covers legal defense costs, settlements, and judgments resulting from claims related to medical errors, negligence, misdiagnosis, or patient care that falls outside of standard practice.

Malpractice insurance covers a lot - but not everything. Most policies exclude:
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- Intentional harm or criminal acts
- Altering medical records
- Sexual misconduct or harassment
- Practicing without a valid license
- Breach of contract or fraudulent behavior
- Claims filed after the policy ends (unless tail coverage is in place)
- Non-patient-related issues

Every policy spells out exclusions in detail, so it’s important to review them carefully.

For a deeper dive, check out our Ultimate Guide to Med Mal.

Common types include claims-made policies and occurrence policies. Claims-made policies cover incidents that occur and claims that are reported during the policy period, while occurrence policies cover incidents that occur during the policy period, regardless of when the claim is reported. Tail coverage is needed for all claims-made policies when switching providers or retiring to extend coverage into future years for past claims during the previous policy period.

Factors to consider include coverage limits, policy terms and conditions, cost, carrier reputation, claims handling process, retroactive date, tail coverage options, and the insurer's financial stability.

Yes, it is possible to switch carriers. However, it's important to review the terms of your current policy, including any obligations for providing notice or obtaining tail coverage, to ensure a smooth transition.

A retroactive date in a claims-made malpractice policy marks the beginning of coverage for incidents that could lead to claims. This date signifies when the insurer starts covering incidents, and it must be maintained as long as the policy is active. Claims arising from incidents that occurred before the retroactive date are typically not covered. If you decide to cancel your policy, you will need tail insurance to cover claims for incidents that happened during the coverage period but are reported after the policy ends. Additionally, some carriers offer prior acts coverage, which extends the retroactive date back to include incidents from previous policy periods.

Depending on the policy type, you may need tail coverage (also called extended reporting period endorsement) to cover claims arising from incidents that occurred while the policy was active but were reported after it has expired.

Implementing strong communication protocols, maintaining thorough and accurate medical records, focusing on patient safety, and staying up-to-date with industry standards and best practices can help reduce the risk of lawsuits. You may also consult legal counsel to gain a better understanding of the steps necessary to mitigate risks associated with your specific practice procedures.

The claims process involves reporting the incident, providing relevant documentation, working with legal experts, and potentially negotiating settlements. Your insurance provider will guide you through each step.

Yes, you can typically adjust your coverage limits during your policy's renewal period. It's advisable to review your coverage annually to ensure it aligns with your practice's evolving needs.