Dr. Eboni Green
May 30, 2023
Like any other healthcare professional, caregivers need insurance against potential claims of negligence or accidents to protect their careers and reputation. We’ll explain the important things you should know before attaining an individual malpractice insurance policy.
The first decision a caregiver has to make when purchasing an individual malpractice insurance policy is whether to get claims-made or occurrence coverage. Claims-made malpractice insurance protects the individual for any claims that occurred and were reported while the policy was active.
Occurrence coverage protects the insured against any claim that occurred during the active period, even if that policy has expired. Claims-made policies only protect the insured while the policy is active. Claims-made policies are more common and affordable, but occurrence policies offer complete protection.
A key thing to know about a malpractice insurance policy is whether it includes a consent-to-settle clause. The consent-to-settle clause is important because it gives the insurance provider the right to settle a malpractice claim against the insured without their consent.
While the insured may feel confident about the claim and want to clear their name in court, the insurance provider may believe it’s more economical to settle. In that case, they can do so against the insured’s wishes. If making the final decision of settlement is important to you, you’ll want a policy with pure consent, which means the insurance provider can’t settle without your explicit agreement.
It’s important for individuals to understand what their malpractice insurance covers. Malpractice coverage applies to medical liability claims such as accidents, negligent care, improper treatment, and inadequate supervision.
If the claim falls under one of these categories, the insurance provider will cover the costs of fighting the claim, including the following:
Caregivers and healthcare professionals should also understand what a malpractice policy doesn’t cover. Coverage does not apply to any criminal activities of the covered individual, like illegally selling drugs or sexual misconduct.
Medical liability insurance also doesn’t cover healthcare providers accused of operating while under the influence of drugs or alcohol. Data breaches of patient information are not covered. Coverage of those claims falls under other insurance policies or must be paid out-of-pocket for defense costs.
