Malpractice Insurance for Healthcare Professionals: Key Details
While shopping for a Malpractice policy, remember you can ask your insureon agent for assistance at any point. Even if your business is considered "high-risk" and is struggling to find insurance coverage, when you work with insureon, you benefit from the longstanding relationships we've built with top-rated insurance providers over the years. This means we are often able to find coverage for your healthcare business even when others cannot.
Take a look at the following coverage types and considerations you'll want to keep in mind as you look for a Malpractice Insurance policy for your business.
When you delve into the world of Malpractice Insurance, you'll find references to "claims-made" coverage. Most policies today will only offer this kind of coverage, which is built around these two conditions:
- Your policy must be active when the alleged incident occurs.
- Your policy must still be active when the claim is filed.
These conditions are the reason why healthcare professionals tend to invest in a Malpractice policy and keep it for the duration of their business's life. If you already have a Malpractice policy and you want to switch to a new provider, you'll want to make sure to purchase limited coverage for the transition period because once your policy has been terminated, coverage no longer exists. An Extended Reporting Endorsement (known as a "tail") can be purchased so your business can file a claim during this interim period when your policy is no longer active.
As opposed to the claims-made type of coverage, occurrence coverage covers any incident that occurred within the life of your Malpractice policy, even if the suit is filed long after the policy has expired. Few policies will offer this kind of coverage, though, due to a need for rate consistency in the Malpractice Insurance market.
Tails and Prior Acts for Coverage Gaps
If you decide to terminate coverage offered by one insurance provider in favor of another policy, you could expose your business to serious gaps in your business protection coverage. To keep your business protected at all times, you may want to look into purchasing "tail" coverage or "prior acts" coverage. Tail coverage allows you to continue to report claims after your policy has been terminated. Prior acts coverage protects you retroactively for those events that may have already taken place but have yet to be reported. Another option is to purchase individual coverage that will follow you through any job change. Ask your insureon agent about which option is optimal for your business needs.
Coverage Limits and Deductibles
Malpractice Insurance can generally be purchased in increments of $1 million. Deductibles are the amount you will be responsible for paying in the event of a covered claim. In some cases, they can be as low as $1,000 and as high as $25,000.
The limits of an insurance policy indicate the amount of coverage provided. In most policies, you'll find two amounts listed for its limits: per occurrence and overall aggregate. Per occurrence is the amount your insurance will cover per incident. Overall aggregate refers to the total your policy will cover during the policy period. For example, a $1,000,000/$3,000,000 policy will pay up to $1,000,000 per incident during the policy period. $3,000,000 is the maximum amount of total coverage offered during the same policy period.