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Considerations for Physicians in Choosing the Best Medical Malpractice Liability Insurance Policy

It is important for physicians to be covered with malpractice insurance since they are needlessly exposed to personal liability. However, when shopping for a medical malpractice liability insurance policy, what usually attracts most physicians is on the premium costs that protect the physician’s coverage limit. This means that the insurance company will only pay for losses sustained by the policy holder up to a certain dollar amount, and if the loss exceeds that dollar bracket, then the physician will need to shoulder the excess payment.

There are two types of inclusions expressed in the coverage limit – a pre-occurrence limit where the insurance would state how much they would pay for a single loss or claim, or commonly known as an occurrence, while the other one is the aggregate limit where the total amount stipulated in the policy is the amount that the insurance company will pay in a given policy period, typically one year or $3 million per occurrence for aggregate limit and $1 million for pre-occurrence limit.

When physicians are dealing with coverage limits in connection to what a petitioner can claim, there are other several complicated issues that they need to be aware of. Remember that most insurers would take the position that despite the fact that there are two separate demands that an insurer is entitled to claim, if the case arises from a similar set of related phenomenon, most insurer would treat it as a single occurrence instead of two occurrences. Physician’s need to know this beforehand because if multiple claims are considered a single occurrence for insurance purposes, then this claims will be governed by a single pre occurrence coverage limit.’
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Defense cost is another issue that a physician ought to be mindful of when searching for the best medical malpractice insurance policy. Defense cost meaning, attorney, expert, and court fees – these are usually not included in the coverage limit. What this means is that the net amount for a single occurrence that a claimant earns after a trail will be deducted the cost of your defense. There are medical malpractice insurance companies that lowers down coverage limit to cover defense costs. Another thing that a physician must take note of is that when he reaches his covered limit, the insurance company is no longer responsible to defend the physician. It now becomes the duty of the physician to hire an attorney and pay all other expense. However, you can still find some policies that continues to defend you even after you have reached the limit of your coverage.
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Excess insurance is another protection for physicians. Excess insurance covers for the policy holder if the limit of the physician’s policy has exceeded.