Healthcare professionals now more than ever need medical malpractice insurance to protect their rights and livelihood. The number of medical malpractice suits is increasing day by day, a number of which are not justifiably valid. However, it does affect the regular life and even social standing of several doctors who are not at fault and as such; they require protection against such claims. For this reason, medical malpractice insurance becomes important.
Medical Malpractice Insurances are three types:
- Claim Made Policy: This is the most common type of medical malpractice insurance. This policy covers the policyholder for alleged medical malpractice acts that have occurred during the policy period. It is a relatively low-cost policy which means that the premiums cost less. Under this policy, the premiums made are on the basis of current practice experience and past experience i.e., premiums are not made for future malpractice liabilities. Another advantage is that it allows physicians to extend the limit of liability if and when needed by him.
While purchasing this policy, buyers must look out for a guarantee allowing them to purchase tail coverage.
- Occurrence Policy: This policy covers a medical practitioner from incidents that occur during the period when the policy is in effect. When a claim is filed is not a relevant factor in the case of this policy. Under this policy, policyholders pay for any future incident that may arise out of medical practice. The number of premiums may vary due to the unpredictable nature of future claims. An advantage of this policy is that it does not relate to past experiences and does not require tail coverage when the policyholder terminates the policy.
- Claim Paid Policy: This policy covered claims settled in the year before and projected for the current year. The policyholder for this policy usually contains trusts instead of individual doctors or hospitals. A claim paid policy also has some restrictions better known as triggers under which claims are not considered to be formally filed until they receive a complaint or summons regarding the same. This policy is generally assessable for some years even after the policy has been terminated.
Medical malpractice insurance provides you with many benefits and offers you protection against malpractice by doctors and medical officials.