Malpractice Insurance
Insurance and coverage
Malpractice insurance is key to protecting your career and giving you peace of mind. This guide breaks down the basics, from claims-made vs. occurrence-based policies to tail coverage and other important terms.
1
Occurrence-Based Insurance:
Covers incidents that happen during the policy period, regardless of when the claim is filed.
It is more expensive but removes the need for tail insurance, making it a reliable long-term choice.
2
Claims-Made Insurance
Covers incidents that happen during the policy period, but only if the claim is made while the policy is active.
Tail insurance* is needed to cover claims after the policy ends.
Typically cheaper upfront, but you'll need to pay extra for tail coverage during transitions like job changes or retirement.
Other Coverage Terms - Not Necessarily Malpractice Coverage
Group Coverage
Employer Self-Insured Plans
Umbrella Coverage
Claims-Sharing Agreements
Case Study: Malpractice Insurance in Action
(Made with a little help from AI)
Let’s explore a hypothetical case to show why having the right malpractice insurance and continuous coverage—especially during job transitions—is so important.
Chief Complaint:
42-year-old woman presents to the emergency department with severe chest pain.
History of Present Illness:
The patient was triaged and evaluated by an on-call physician who performed an EKG and initial lab tests.
The patient was diagnosed with gastroesophageal reflux disease (GERD) and discharged with a prescription for proton pump inhibitors. Two days later, the patient suffered a massive myocardial infarction and died.
Legal Claim:
The patient’s family alleged medical negligence, claiming that the physician failed to recognize the signs of an acute coronary syndrome.
Outcome:
The on-call physician was covered under a group malpractice insurance policy through their hospital. The policy was claims-made and included a high liability limit but required tail insurance upon termination of employment.
Because the physician had recently left the hospital and purchased tail insurance, the claim was covered. Without tail coverage, the physician would have been personally liable for legal fees and damages.
Key Takeaways
1
Know Your Policy: Understand what type of policy is in your contract and the implications.
3
Explore Options: Be aware of other coverage types. Though rare these days, they may surface if you’re applying to a private practice.
2
Tail Insurance Matters: Get tail coverage if it’s needed and negotiate when applicable.
4
Contract Negotiation: Compare your contract to others to get benchmarks. If you’re uncomfortable doing it yourself, hire a lawyer to help you.