What Exactly Is Malpractice Insurance?

Malpractice insurance is a type of insurance that healthcare professionals can purchase in order to protect themselves from patients who file lawsuits against them. If a suit is filed by a patient, typically, they will claim they were injured as a result of the healthcare provider’s negligence. Medical negligence typically occurs during treatment, diagnosis, or when recommendations are given following a major condition. In other cases, patients may claim they were intentionally harmed by the healthcare professional.  Additionally, if the death of a patient occurs, malpractice will cover it. This is why it is crucial that healthcare professionals have malpractice insurance.

Is Malpractice Insurance Required in Every State?

To work in any medical facility, states mandate healthcare practitioners to have ongoing malpractice insurance. Premiums for medical malpractice insurance are typically dependent on the professional’s expertise and geographic location, rather than experience with claims. This implies that although a medical professional hasn’t been sued, the professional may still have to pay very expensive premiums. Factors that result in high premiums include the severity of claims, number of claims, and required coverage needs. The medical professional’s location and local laws are also determining factors on the cost of the insurance premium.

What Kinds of Malpractice Insurance Are There?

There are numerous alternatives for obtaining malpractice insurance. A private insurer can purchase an insurance policy for a person or a group in its simplest form. Medical practitioners can also come together to purchase malpractice insurance. This type of insurance can also be purchased through an employer’s coverage plan.

Those who work as government-employed medical professionals are not required to have malpractice insurance. This is because the federal government covers any liability claims. If the circumstance requires it, coverage can be purchased via state and local government agencies.

A medical professional can buy one of two types of malpractice insurance policies: an occurrence or claims-made policy.  A claims-made policy just covers claims at the time of the treatment and the lawsuit if the policy was active. An occurrence policy covers claims made for therapies or treatments received while the malpractice insurance was active, even though it may not be currently in effect.

A malpractice policy covers a wide range of expenses. They cover all legal expenses, including attorney fees, arbitration expenses, medical damages, settlement, and exemplary damages.

Is Employment Liability Insurance Similar to Malpractice Insurance?

Unlike malpractice insurance, Employment liability insurance protects businesses as well as insured workers, such as managers, directors, independent contractors, and employees, against legal expenses, judgments, and settlements resulting from lawsuits of:

-invasion of privacy

-mishandling of employee benefits

-unfair discipline and termination

-sexual harassment

-bullying

-discrimination

-denial of a career opportunity

-employment laws have been violated

The price of employment liability insurance is determined by the kind of company, whether a lawsuit has been filed against the company previously for employment practices, and number of workers. The insurance policy will cover the costs of lawsuit cases, as well as settlements and judgments. These legal fees are covered regardless of the outcome of the case. Unfortunately, most policies do not cover worker’s compensation, punitive damages, or civil penalties.

To avoid lawsuits from employees, enlighten your workers, including supervisors, managers, and employees, so that issues can be avoided:

-Record everything that happens, as well as the process your business took to avoid and resolve employee conflicts.

-Be sure to educate workers on the steps they need to take if they are discriminated against or harassed.

-Ensure that supervisors understand the company’s stance on the actions that are not acceptable.

-Develop excellent recruitment as well as screening programs to prevent hiring discrimination.

 

-Display corporate policies in the workplace handbooks and throughout the job facility. This ensures that everyone understands the policies.