"MedPro has empowered me to make clear and informed decisions on both my malpractice insurance policy and carrier. I am excited to start my career and have peace of mind knowing that I have the support of MedPro Group."
Dr. C, MedPro Group Insured
Malpractice insurance helps protect you if someone files a lawsuit against you. Lawsuits are a reality of practicing medicine, but with the right policy and carrier, you can manage risk while providing the best care.
In most states, the law requires that healthcare professionals carry malpractice insurance. As a student, you were likely insured through your university. After you graduate, you’ll need to get your own malpractice insurance.
An insurance carrier issues your policy and is responsible for providing your coverage. You can buy your policy through an agent or broker, or directly from a carrier. While agents can facilitate your policy purchase, carriers provide the actual coverage.
How you buy malpractice insurance varies depending on your situation. For example, a podiatrist with their own practice might purchase insurance differently than an anesthesiologist employed by a hospital.
The cost of malpractice insurance varies greatly by your profession, where your practice is located, and what type of coverage you have. Year-over-year, malpractice prices may also change based on claims and industry trends.
This creates a lot of pricing variation across carriers and often leaves practitioners feeling confused. While we can’t speak for other insurance companies, we’ve put together this graphic to help you understand how pricing works at MedPro Group:
For example, certain specialties carry different risks and therefore may have different premiums.
Malpractice claims trends can vary between states and counties, impacting coverage costs.
Occurrence and Claims-made policies have different pricing structures.
Other factors, like how many hours you practice or your claims history, can also affect your cost.
Based on claim and lawsuit trends across the industry, prices can change.
The majority of our expenses goes toward protecting you through claims management and defense.
We try to keep our operating expenses low, while ensuring we can pay our bills and employee salaries.
As a Berkshire Hathaway company committed to being around for the long haul, our rates are built to be stable and sustainable.
There are two main types of malpractice policies:
1. Occurrence
You’re covered by your policy from when the treatment occurred. See how it works.
Key takeaway: Since Claims-made coverage only protects you during the policy period, most people with this kind of policy also purchase tail coverage, which protects after you stop practicing. Read our article on Occurrence and Claims-made coverage to better understand your policy options.
You now know the difference between Occurrence and Claims-made, but there are other important aspects of coverage you should consider before signing a contract.
What they are: The policy limits are the maximum amount your insurance carrier will pay for claims filed against you. Policy limits are written as two, side-by-side numbers:
The total amount your insurer will pay for each claim filed against you in one policy period.
The total amount your insurer will pay if you get multiple claims filed against you in one policy period.
How you should evaluate them: Make sure your policy limits are high enough to protect you throughout your whole career. To decide what limits are right for you, you should talk to your agent or insurance carrier.
What is it: If a claim is filed against you, the consent provision in your malpractice policy determines if your insurance carrier has the power to decide to settle your case (pay the demand).
How you should evaluate it: Make sure that the consent provision gives you the ability to refuse to settle, and doesn’t have hidden exceptions that take away your say in the decision. If others can decide when to settle a case, they may do so even if it’s against your best interest.
What is it: If you choose a Claims-made policy, you should be aware that you’ll need to get tail coverage after you stop practicing, which extends your protection.
How you should evaluate it: Tail coverage can be very expensive, and many insurers claim to offer free tail coverage. But read the fine print! Some insurers only provide free tail coverage upon death or disability, or there may be age restrictions on when you can retire.
What is it: As an added benefit, insurers often include additional coverage as part of your policy. This may include cyber liability, HIPAA coverage, audit coverage, billing errors coverage, administrative hearing coverage, and more.
How you should evaluate it: You should look closely at these additional coverages to make sure your practice is appropriately protected. If you’re unsure, you may want to talk to your agent or carrier about custom solutions.
So far, you’ve learned the basics about malpractice insurance, with guidance on how to evaluate a policy and understand the differences between coverage. Here’s are a few questions you should ask yourself before signing off on a policy: