Without malpractice insurance, a doctor significantly increases their chance of going bankrupt and having their reputation ruined. When a healthcare professional fails to give the appropriate level of care and causes harm or injury to the patient, this is referred to as medical malpractice. If the doctor didn’t have malpractice insurance, they would be responsible for covering any judgements or settlements out of pocket, which could easily total millions of dollars.
A doctor’s reputation could suffer if they don’t have malpractice insurance in addition to the financial danger. A malpractice lawsuit can damage a doctor’s reputation and make it challenging for them to get future employment. Malpractice insurance might offer protection for the doctor’s professional and financial security.
A claim submitted after a policy has finished is covered by tail coverage, commonly referred to as an extended reporting period endorsement. For doctors who are retiring, changing careers, or terminating their practice, this kind of coverage is crucial. A doctor would not be covered from malpractice claims brought after their policy has expired without tail coverage.
The greatest amount of protection that an insurance policy will provide for a single claim is known as a per occurrence limit. A doctor would be liable for paying the remaining $1 million out of pocket, for instance, if their per-occurrence cap is $1 million and they are sued for $2 million. When selecting a per occurrence limit, doctors should take their possible liability into account.
In light of this, What Is a Per Occurrence Deductible? The sum of money a doctor must pay out-of-pocket before their insurance policy starts to pay claim expenses is known as a per occurrence deductible. For instance, if a physician has a per occurrence deductible of $10,000 and is sued for $100,000, the physician would be responsible for paying the first $10,000 while their insurance would pay the remaining $90,000. When selecting a per occurrence deductible, doctors should take their financial circumstances into account.
Policies for Commercial General Liability (CGL) are frequently claims-made policies, which implies that they give coverage for claims that are filed within the policy’s term. In contrast, occurrence-based insurance policies cover incidents that took place at any time throughout the policy’s term, regardless of when a claim is filed. To understand the kind of coverage they have and the circumstances under which they are covered, doctors should thoroughly analyze their insurance policies.
To summarize, doctors need malpractice insurance to safeguard their financial and professional security. A malpractice lawsuit without insurance could cause a doctor to suffer a considerable financial loss as well as harm to their reputation. When selecting an insurance plan that suits their needs, doctors should also take tail coverage, per occurrence restrictions, and deductibles into consideration.