Regardless of whether you will be practicing as a solo physician or joining a medical group, you should consider hiring a competent healthcare attorney to help guide you through the process. Solo practitioners should also consider using a practice consultant. Many new physicians are reluctant to spend the money on these professionals, but our experience tells us that successful physicians and medical practices have either a good healthcare attorney, practice consultant or both guiding them through this process. “Sometimes you need to spend money to make money”.
The following should be considered as you launch your professional career.
A Claims Made policy offers coverage for a claim arising from a healthcare event that not only occurred on or after the retroactive date (as set forth in the Declarations Page of the policy), but also was first made against an insured during the policy period. Claims-made coverage is generally inexpensive at first, and gradually increases or “steps up” over a period of time (commonly five years) to a “mature” claims-made premium. An Occurrence policy offers coverage for claims arising from an event that took place during the policy period.
Applicable to claims-made policies, this coverage allows the insured to report claims first made after a policy termination date. However, such claims must result from an event that occurred on or after the retroactive date, but prior to the policy termination date. Some carriers waive the additional premium for this coverage in the event of an insured’s death, disability or permanent retirement.
Medical malpractice insurance policies have limits of liability, which are the maximum amounts the insurer will pay for covered claims. These limits typically include:
In medical malpractice insurance, a “claims trigger” determines when a claim is considered to have been “made” against the insured, which is crucial for coverage under a claims-made policy.
Written Demand Trigger: This is the most common type. A claim is considered “made” when the insured receives a written demand for money or services from a patient or their representative. This can include:
Incident Trigger: This is a broader trigger. A claim is considered “made” when the insured reports an incident to the insurance company that they reasonably believe could result in a claim. This allows for earlier reporting of potential issues and can provide broader coverage.
A policy provision that requires an insured’s consent before the carrier may settle a claim on behalf of the insured. An example of sample language: “Written consent of the first named insured only is necessary and sufficient for the Company to settle any claim or other matter brought against an insured facility or its agents.”
Medical director insurance covers claims arising from the medical director’s administrative and supervisory duties, such as:
Regulatory & Cyber Coverage is a type of insurance that protects businesses from the financial and legal consequences of:
Expert Witness/IME Coverage is a type of insurance that protects healthcare professionals from financial losses related to their involvement in legal proceedings as expert witnesses or Independent Medical Examiners (IMEs).
Here’s what it typically covers:
Who Needs It:
What to look for in a professional Liability Carrier
AM Best Ratings – This independent rating agency assesses insurers’ financial strength and ability to meet policy obligations. A high rating (A or above) indicates strong financial stability, crucial for long-term coverage.
Financial Stability – A financially sound carrier ensures your claims will be paid in full. Look for factors like strong reserves, consistent profitability, and a history of meeting financial obligations.
Reputation for Defense – A carrier with a strong defense team and a proven track record of successful claim defense is invaluable. Look for experienced attorneys, strong relationships with expert witnesses, and a history of favorable claim outcomes.
Risk Management – A carrier that emphasizes risk management provides valuable resources like:
Benefits – Consider the specific benefits offered by each carrier, such as:
Tom Murphy
Managing Director
p 561-459-2879 | c 561-445-9626
tmurphy@risk-strategies.com
KylaMurphy
Managing Director
p 561-459-2881 ext 3953 | c 561-613-9527
kyla.murphy@risk-strategies.com