The Importance of Doctor Malpractice Insurance

Malpractice insurance is a financial-based instrument designed specifically to protect healthcare professionals against judgment for medical negligence, malfeasance or malpractice. Most states require all physicians to carry some form of malpractice insurance. Most medical institutions also require medical professionals to carry medical malpractice insurance to protect them from any negligent action. Because malpractice lawsuits are on the rise across the country, medical malpractice insurance costs are increasing as well. This mandatory insurance coverage with its high premiums puts a burden on all doctors even though the majority will never be sued. Because of the wide variance in the cost of malpractice insurance premiums in different states, some relocate to states with the lowest insurance costs.

Because individual states regulate doctor malpractice insurance costs, averages can vary considerably from one state to the next. The type of medical specialty also dictates premium costs based on risk factors associated certain medical fields and specialties. Rates are assigned based on each classification and the probability of a medical malpractice occurrence. Obstetrics is rated as a high-risk medical specialty that has a high rate of litigation. Any injury to an infant at birth usually results in a high amount of damages paid to the parents. Orthopedic surgeons are also susceptible to medical malpractice lawsuits because of the probability of negligent mistakes. As a result, they must pay higher premiums.

Medical malpractice insurance providers offer professional liability coverage that protects doctors, nurses and hospitals from negligence claims regarding unsatisfactory medical outcomes. Companies that provide doctor malpractice insurance for these professionals examine the potential for lawsuits within a particular medical specialty and within that state before setting insurance rates. Each individual insurer usually bases premiums on the number of incidents of litigation and risk factors associated with a particular medical field.

Medical malpractice policies protect medical professionals from costly judgments. Even though these policies often come with high premiums, they also provide coverage against claims that sometimes exceed several million dollars. A doctor’s medical specialty should help determine the amount of liability coverage required. Even though high doctor malpractice insurance rates may be a huge financial burden for doctors in some states, most doctors agree that it is necessary to have coverage. In most states, doctors must carry malpractice insurance as a condition of their medical licensure. Carrying a malpractice insurance policy provides doctors with a safety net designed to protect their practice and their personal finances.