Group Malpractice Insurance: 4 Coverage Gaps To Fix Now

Medical professionals face mounting liability risks that can greatly impact their careers and finances. Group malpractice insurance provides important protection, but many practices operate with significant coverage gaps that expose them to catastrophic losses.

If your facility has group malpractice insurance, these four coverage gaps to fix now are pertinent to keeping everyone protected. These vulnerabilities require healthcare organizations to strengthen their risk management strategies, safeguarding their financial stability.

Inadequate Coverage Limits

Many group practices select coverage limits based on premium costs rather than actual risk exposure. This approach leaves practices vulnerable when large claims arise.

Medical malpractice awards continue to increase, with some settlements reaching millions of dollars. Practices must evaluate their coverage limits against potential claim values, taking into account factors such as specialty risk levels, patient volume, and geographic location.

Insufficient Tail Coverage

Tail coverage protects healthcare providers from claims filed after their policy expires or when they leave a practice. Many group policies fail to address tail coverage, resulting in significant exposure gaps that are inadequately addressed.

Claims can surface years after treatment occurs, particularly in obstetrics, pediatrics, and surgical specialties. Practices need clear tail coverage provisions that protect departing physicians and uphold continuity of group protection. This coverage becomes particularly needed during practice transitions, retirements, or changes in specialty.

Limited Cyber Liability Protection

Healthcare practices store endless amounts of sensitive patient data, making them prime targets for cyberattacks.

Traditional group malpractice policies often exclude cyber-related incidents, leaving practices exposed to data breach costs, regulatory fines, and business interruption losses.

Modern group policies must comprehensively address cyber liability risks. This includes coverage for data breach response costs, notification expenses, credit monitoring services, and regulatory compliance support.

Inadequate Legal Defense Coverage

Legal defense costs can really add up during malpractice proceedings, often exceeding policy limits before the case is resolved. Many group policies impose restrictions on legal defense coverage or require practices to use specific attorney networks.

These limitations can compromise defense strategies and lead to increased out-of-pocket expenses. Comprehensive group policies should provide robust legal defense coverage, offering flexibility in attorney selection and unlimited defense cost coverage beyond policy limits.

Addressing Coverage Gaps

Identifying and addressing these gaps requires expertise in carrier capabilities and medical malpractice insurance markets. Practices benefit from working with experienced brokers who understand healthcare risks, liability insurance for healthcare facilities, and maintain relationships with multiple insurance carriers. Group malpractice insurance serves as a cornerstone of practice risk management, but only when coverage comprehensively addresses actual exposures.

Professional insurance guidance helps practices navigate complex coverage decisions and secure protection that supports long-term practice stability and growth. The next step is fixing these four group malpractice insurance coverage gaps now. Baxter & Associates brings decades of experience helping healthcare practices identify and address coverage gaps through access to numerous carriers and unparalleled service in medical malpractice insurance markets.