What Does Medical Malpractice Insurance Cover?

Medical malpractice insurance is a critical safeguard for healthcare professionals. It provides a layer of protection against claims of negligence and errors in delivering medical services.

This type of insurance is essential for all medical practitioners, from doctors to nurses, to ensure they can practice with peace of mind. Understanding what medical malpractice insurance covers can help medical professionals make informed decisions about their insurance needs.

Why Medical Professionals Need Malpractice Insurance

Healthcare professionals work in high-stakes environments where mistakes can have serious consequences. Even the most skilled and conscientious practitioners can face malpractice claims.

Without insurance, the financial burden of defending against such claims and paying settlements can prove to be career-ending. Malpractice insurance allows healthcare providers to continue practicing while protecting their assets and reputations.

Two Types of Medical Malpractice Insurance

Medical malpractice insurance typically comes in two main forms: occurrence-based and claims-made policies.

Occurrence-based policies cover incidents that happen inside of the policy period, regardless of when a patient files a claim. This type of policy offers long-term peace of mind but is often more expensive.

Claims-made policies only provide coverage if the policy is active when the incident occurs and a patient files the claim. Healthcare professionals must often purchase “tail” coverage to maintain continuous coverage when they retire or switch jobs to protect against future claims related to past incidents.

Providing Financial Relief: What Medical Malpractice Insurance Covers

Medical malpractice insurance covers a range of costs and liabilities associated with malpractice claims. These include:

Legal Defense Costs

One of the most significant expenses in a malpractice claim is the cost of legal defense. Malpractice insurance covers attorney fees, court costs, and other legal expenses, which can quickly add up even if the Court finds the claim to be without merit.

Settlement and Judgment Payments

The insurance policy will cover the cost of settlements or judgments awarded to the plaintiff if the Court finds a healthcare professional liable for malpractice. These amounts are often substantial, making this coverage crucial for protecting the insured’s financial well-being.

Medical Damages

The insurance policy will cover the costs associated with the patient’s medical treatment and care in cases where the malpractice resulted in injury or harm to a patient, as well as compensation for pain and suffering.

Administrative Costs

Handling a malpractice claim involves various administrative costs, including documentation, expert witness fees, and other related expenses. Malpractice insurance covers these costs, allowing healthcare professionals to focus on their practice rather than administrative burdens.

Understanding what medical malpractice insurance covers is vital for healthcare professionals. This type of insurance provides comprehensive protection against the significant risks associated with medical practice, from legal defense costs to settlement payments.

Healthcare providers must have adequate coverage to continue serving patients with confidence, whether choosing an occurrence-based or claims-made policy. Obtaining CRNA malpractice insurance tailored to CRNAs’ unique risks and responsibilities is equally important for such specialized roles. Contact Baxter & Associates today for help finding the best coverage for your profession and location!