Mistakes That Can Affect Your Malpractice Insurance Coverage

Malpractice insurance is necessary for proper coverage, but it can be tricky to navigate. Understanding and avoiding common malpractice insurance pitfalls can help your practice maintain comprehensive coverage. Let’s explore the mistakes that can affect your malpractice insurance coverage.

Constantly Searching for the Cheapest Coverage Available

Focusing solely on finding the cheapest malpractice insurance is a critical error that many practitioners make. While it’s important to consider costs, choosing a policy based on price alone may leave you with inadequate coverage. Insurers offering lower premiums might also provide limited protection, which could prove problematic if a claim arises. Therefore, it’s essential to balance cost with the scope of coverage to ensure that you have adequate protection.

Having a Different Retroactive Date When Changing Insurers

Maintaining the same retroactive date is crucial when switching malpractice insurers. The retroactive date determines how far back your coverage extends for incidents that occurred before your current policy started. A new policy with a different retroactive date could leave you unprotected from claims related to past incidents. Always verify that your retroactive date remains consistent when changing insurers to avoid any gaps in coverage.

Not Obtaining Medical Malpractice Tail Coverage

If you decide to retire, change careers, or switch insurance providers, neglecting to obtain tail coverage could prove problematic. Tail coverage extends protection for claims made after your policy expires, covering incidents that occurred while your policy was active. Without tail coverage, you may have little protection against claims that arise after your policy ends, making you financially liable.

Renting Out Office Space to Another Medical Provider

Renting office space to another provider can expose you to additional risks, especially if their malpractice insurance doesn’t cover incidents occurring in your shared space. Any subletting agreements should include clauses requiring the other practitioner to carry malpractice insurance. Verify that they have an active policy to protect yourself from liability due to their actions.

Performing Procedures Not Covered Under Your Insurance Policy

Performing procedures not covered under your malpractice insurance policy is a mistake that can have dire consequences. Each policy has specific terms outlining which procedures the insurance company will cover, and venturing outside these limits can leave you financially vulnerable in the event of a claim. Always review your policy to ensure that you have coverage for the procedures you perform. If necessary, consider upgrading your coverage to encompass additional procedures and avoid potential liability.

It is important to avoid these mistakes that can affect your malpractice insurance coverage. Whether you’re evaluating your current policy or considering a new one, remember that cost is just one factor—adequate coverage should remain your top priority.

Furthermore, if you’re a specialist, such as a nurse anesthetist, consider securing nurse anesthetist malpractice insurance that is tailored to your needs. Baxter & Associates can help you make informed decisions, safeguarding your practice and helping you find effective coverage. Contact us today to learn more about our services.