What State Has Damage Caps on Medical Malpractice Insurance

Finding medical malpractice insurance is one thing, but using it is quite another. You must coordinate with your insurance agency, but policy details and state regulations limit their ability to help you. Read ahead to learn what state has damage caps on medical malpractice insurance.

What Are Damage Caps?

Damage caps relate to all kinds of personal injury lawsuits. They are state-specific limits on non-economic damages awarded in legal cases. Non-economic damages, as the name implies, are indemnities stemming from a plaintiff’s injury, pain, and suffering, as opposed to financial losses they sustain. Damage caps exist since non-economic damages relate to subjective calculations in court. If the case gets to a jury, lawyers can influence this group of peers to consider higher payouts. Damage caps prevent personal injury cases from overcompensating plaintiffs while allowing for any amount up to the maximum.

How Do They Affect Medical Professionals?

Damage caps are common in medical malpractice suits since medical circumstances often lead to severe consequences. Though the penal system may allow for the maximum amount, the cap sets a limit to how much medical professionals must pay. Damage caps essentially protect the defendant from unduly large recompense. This is good news for medical professionals from MDs to NPs.

Where Are They in Effect?

Every state has its own purview to decide their damage caps. You will need to visit your state government’s website or contact local officials for the most accurate and up-to-date information. However, nearly half of all the states in the US have established damage caps. Research your situation and understand whether your state sets limits. If you cannot find the information you need, reach out to local contacts or your insurance agency.

Know what state has damage caps on medical malpractice insurance so you can adequately prepare your assets and adjust your insurance policy. For example, if you need more protection on a nurse practitioner liability insurance policy, reach out to our insurance professionals at Baxter & Associates for more information.