As a physician or dentist, having high-quality med mal insurance is of the utmost importance. This indispensible coverage can protect you in the event that a patient files a lawsuit against you or your practice. Here are the three most common types of malpractice insurance.
Claims-made policies cover holders for alleged acts of malpractice that occur during the policy period. Premiums typically start off very low, but increase as time progresses. This is because there is usually a significant period of time between the actual treatment or surgery, and the claim being filed. The premium continues to increase until a physician is found to pose a low insurance risk.
Occurrence coverage insures the policy-holder for any malpractice suit, regardless of when a claim is filed. Premiums are based on not only current experience, but future projections as well. Premium rates vary significantly, and there is no set formula for determining future risk.
Premiums for claims-paid policies are based on the number of incidents settled over the previous year, and projected for the current year. These policies are desirable because they can offer coverage even after an individual policy has been terminated. Claims must be officially filed before any type of coverage begins.
In short, physicians have a fairly wide range of choices when it comes to med mal insurance. Each type has its own distinctive set of characteristics, so remember to choose wisely. By keeping your personal needs in mind, you can avoid much of the confusion and find a plan that fits you perfectly.