Medical Malpractice Insurance
If you run a business that provides a professional healthcare service, you should have medical malpractice insurance.
What is medical malpractice insurance?
Medical malpractice insurance protects your business in case you find your company being sued for medical error or neglect, even if the claims are false. It is a combination of professional indemnity and public liability insurance.
Cover is provided for bodily injury, mental injury, illness, disease or death of any patient caused by any negligent act, error, or omission committed by you or a member of your staff in the performance of you business activities, or in the course of a good Samaritan act.
Medical malpractice insurance will pay both the legal costs of defending an action and any subsequent damages awarded subject to policy terms and conditions.
Does your business need medical malpractice cover?
Medical malpractice insurance is for anyone working in the healthcare industry and associated caring professions. All medical practitioners including occupational health agencies, complementary health practitioners, nursing homes, care homes and other health professionals, should be protected.
What limit do I need for medical malpractice insurance?
Limits up to £10m are available. The limit you need depends on the type of work you do, the sort of clients you work for and what you can afford to spend on insurance.
You should choose limits that are right for your specialty rather than the highest available. If unsure discuss with your insurance broker.
You can request quotes for different limits to see how the cost compares.
How much does medical malpractice insurance cost?
The cost of medical malpractice insurance depends on the type of work you do, the size of your business, your geographical location, the sort of clients you work for, the policy limits and whether or not you have had any previous claims or losses.
What is the retroactive date on a medical malpractice policy?
The retroactive date on your medical malpractice policy is usually the start date of your business or the inception date of your first medical malpractice insurance policy. If you are getting alternative quotes at renewal, check that the retroactive date is correct. If unsure, discuss with your insurance broker.
The reason a medical malpractice insurance policy sometimes has a retroactive date is because it is written on, what is known as, a ‘claims made’ basis. This means that, unlike other liability insurance policies, it only covers you for claims that are made during the period of insurance. If the insurance is cancelled or cover ends for some reason, there won’t then be any cover if a claim comes in.
Because of this, if your company ceases trading or you decide to sell it, it’s important to consider buying run-off cover to protect you in case a claim comes in for previous work.
Where to get the best medical malpractice insurance quote?
As a business owner, how do you decide where to go to find the best medical malpractice insurance?
Medical malpractice insurance is technical and it’s therefore best to speak to an independent business insurance broker for advice and to get a competitive quote. Look for an insurance broker that specialises in commercial insurance and offers a personal service. They will usually get you several quotes from different insurance companies and then recommend the product that best fits your requirements.
You can buy medical malpractice insurance online but, in our opinion, this is risky as it is then up to you to decide whether the cover is right for your business. This can be tricky when you are unable to ask questions or discuss the policy terms and conditions. Policy wordings for this type of insurance are often long and complicated and a good business insurance broker will be able to draw your attention to the key sections.
Most sites that that offer on-line quotations for medical malpractice insurance have a limited list of business descriptions to choose from. Your business may not exactly fit one of these categories. If you deal with a commercial insurance broker they will be able to specify exactly what your business description is, so that the insurer knows what they are insuring. Getting this right is important because the business description is one of the first things a claims handler will look at in the event of a claim.
Medical Malpractice – a few tips
A few things to think about when arranging medical malpractice insurance:
- What are your legal obligations?
- Is the business description relevant to your business?
- Is the limit of indemnity adequate?
- How much is the policy excess?
- Check the retroactive date
- Check the policy exclusions
Get expert help
Here at Breathe we have many years of experience in arranging medical malpractice insurance for busy professionals. We like to work closely with you to make sure you have the right insurance in place at a competitive price.