Purchasing medical professional liability insurance does not need to be an arduous task. The questions and answers below will guide you through the basics of what every podiatrist should know before making this important purchase.
Q. How do I select a medical malpractice carrier?
A. There are five components you should compare when selecting a medical malpractice carrier:
- Financial Strength: The purpose of medical malpractice insurance is to provide defense and/or pay an indemnity if a claim should ever arise against you. You need to be insured with a carrier who has the financial strength to cover you now and in 30+ years when you are looking to retire. Look for an “A” rating from a legitimate rating company such as A&M Best or S&P.
- Defense Record: Your insurance company should have expert defense attorneys who are going to protect your name, practice and reputation if a case is brought against you. Further, you want to be sure that the company you are with is willing to spend the money necessary in defense costs to protect their doctors, rather than settling cases to make them go away. Settling cases that could have been defended may harm the doctor or practice’s reputation, and will likely cause you to pay more for insurance down the road.
- Consent-to-Settle: Your carrier should give you the right to decide whether or not a case is going to be settled. After all, the settlement is against your name and practice. There should be no hammer clauses or exceptions to this. Hammer clauses act to compel insureds to comply with an insurer’s decision to settle a case rather than fight it out in court.
- Price: Look for a company that is going to provide you with a low, sustainable premium. The healthcare malpractice insurance market is cyclical, and the past few years have given rise to fewer claims than in decades past. Be sure that you are with a company that combines strong defense and affordability. When conditions are less favorable for making money, small startup carriers may leave the healthcare malpractice insurance market as quickly as they arrived, thus abandoning you and forcing you to shop for a new insurer. Their departure may also force you to shop for costly “tail” coverage so that you have protection from the period of time you were with the now departed insurer.
- Additional Coverage: A comprehensive medical malpractice policy should include coverage for the defense cost of administrative hearings, cost of an investigation or defense of a HIPAA proceeding, and reimburse you for your loss of earnings during time spent away from your practice if you are involved in a case. These additional coverage items should be included in your policy and can provide you with an additional peace of mind.
Q. What type of policy is best for me?
A. While there is no “one size fits all” policy, there are two basic forms of medical malpractice coverage available: claims-made and occurrence.
- Claims-Made Coverage: This policy form provides coverage for claims arising for all professional medical services provided on or after the retroactive date while the policy is in effect. A retroactive date is the date on a claims-made liability policy that triggers the beginning period of insurance coverage. If the insured wants to stop coverage, they must purchase “tail coverage” also known as an extended reporting endorsement.
+ Initially less expensive than occurrence coverage.
+ Type of coverage that is more typically purchased.
- The insured must have continuity of coverage to keep their assets protected.
- The purchase of “tail coverage” is required to provide the necessary protection for the insured if the insured stops practicing for a period of time. However, all reputable medical malpractice carriers will provide a complimentary tail to any insured who fully retires at no additional cost.
- Occurrence Coverage: This policy form provides coverage for claims arising from any services provided to patients during the policy period. Coverage is provided for this policy period indefinitely and a tail never needs to be purchased.
+ Insureds have separate policy limits for each year of coverage.
+ Never need to purchase tail coverage.
+ Insureds have more freedom to stop, start, or move their coverage.
- Generally more expensive than a claims made policy in the first few years. Although after five years in practice, the difference between occurrence pricing and claims-made pricing is not very significant.
Q. What does the expression of limits: $1,000,000 per occurrence/$3,000,000 per aggregate mean?
A. The per occurrence amount reflects the maximum dollar amount the policy will pay for any singular claim, whereas the per aggregate amount reflects the maximum dollar amount the policy will pay for all incurred claims during the policy period.
Q. What should I consider when requesting limits?
A. Limits vary by state, so check with your state and any local hospitals or surgical centers where you will be providing services, to ensure that you request limits that meet their requirements. The most common limits are $1,000,000/$3,000,000.
Q. Why should I choose the DPM-Preferred Program?
A. DPM-Preferred is a podiatric physician-specific program that offers unparalleled stability and strength in the medical malpractice arena through its partnership with Medical Protective. Medical Protective has over 110 years of experience in protecting the assets and reputations of healthcare providers and is a prestigious Berkshire Hathaway company with the highest financial ratings in the industry. The DPM-Preferred Program provides additional benefits including an annual podiatric risk management course to help reduce the likelihood of being named in a suit, and complimentary access to a quarterly continuing education journal designed to aid in the fulfillment of physician state licensure requirements.
- Stable premiums
- Exceptional courtroom performance
- Policy provisions that are in your favor
- Podiatric benefits with a focus on continuing education
- We are your ally
| Key Facts |
Medical Protective |
| A.M. Best Rating |
A++ |
| S&P Rating |
AA+ |
| Years of malpractice experience |
113 |
| Healthcare Professionals trial win percentage nationwide |
93% |
| Total number of malpractice claims Medical Protective has resolved nationwide |
~400,000+ |
| Percentage of cases filed against MedPro insureds that are closed with no loss payment |
80% |
| Does the company offer both claims-made and occurrence policies? |
Yes |
| Does the company offer pure consent to settle without a hammer clause or binding arbitration? |
Yes |
| Does the company offer free tail coverage at retirement if insured for one year, regardless of age? |
Yes |
| Does the company have a proven track record for weathering difficult economic cycles, including the Great Depression and two world wars? |
Yes |
| Does the company have defense expertise from insuring the entire spectrum of healthcare providers and facilities? |
Yes |
|
Q. How do I apply for coverage?
A. Go to: https://www.dpm-preferred.com/form/ or call 1-866-516-6046.
