What do I need to know about medical malpractice professional liability insurance?


Medical malpractice professional liability insurance is a much-needed protection for physicians against catastrophic medical malpractice lawsuits, which - according to recent reports - have been on the rise. Physicians can insure themselves against liability that may arise from their professional actions, using the ISO form called "physicians, surgeons and dentists liability policy".

Medical Malpractice Professional Liability Insurance Premium Costs

Medical professional liability policies are a very important protection against medical malpractice liability claims but they are notorious for being extremely difficult to afford.

Some medical specialists, such as those workings in the field of obstetrics and gynaecology, neurosurgery and orthopaedics, pay over $100,000 every year in medical professional liability insurance premiums. The premium amounts are proportionate to the risks involved in the respective area of healthcare. US doctors usually work in groups in order to reduce their medical liability insurance rates.

How Medical Professional Liability Insurance Works

  • Coverage:

    Medical malpractice professional liability insurance has two major insuring agreements known as coverage A and coverage B, respectively.

    • Coverage A covers the financial liability arising out of a medical incident that the insured has caused due to negligence. The presence of a medical incident is an important requirement for payments of damages under coverage A. No other types of liability are covered under Coverage A. A special rider can be included in the policy, extending the coverage to other physicians who happen to work under the supervision on the insured.
    • Coverage B provides protection to healthcare professionals, such as surgeons, who work in groups.
  • Policy limits:

    Medical professional liability insurance has certain limits for every incident and per annum.

  • Special considerations:

    As its name suggests, medical professional liability insurance only covers liability arising from the insured's professional actions (e.g. if they cause a medical incident, such as in the case of a faulty diagnosis.). General liability or liability that does not arise in occupational conditions is not covered.

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