Doctors who work in medical practices must maintain various insurance policies to protect themselves from potential liability. A primary concern is that an error could lead to a patient’s injury or death. If this happens and the victim files a lawsuit, the doctor could be liable for significant financial damages. Here are five reasons a doctor should have professional liability insurance:
Doctors who have professional liability insurance can defend against claims of negligence. If a doctor’s negligence leads to a patient’s injury, the doctor is responsible for covering the patient’s medical bills, lost wages, and other expenses related to the incident. They may also have to pay the victim’s legal fees if the case goes to trial. Doctors with malpractice insurance can use their insurance to pay these costs. In return, they receive financial protection while they defend against negligence claims. The insurance policy may cover hiring a doctor’s defense attorney.
Claims of malpractice frequently occur in the healthcare industry. According to the American Medical Association, about one out of every six doctors in the U.S. endures a malpractice claim annually. Defending against these claims can be very expensive for physicians without professional liability insurance. A doctor may spend tens of thousands of dollars on an attorney’s retainer fees, expert witnesses, and other legal fees related to defending against malpractice claims. Physicians who have professional liability insurance can receive coverage for these costs. The medical practice may need to reimburse the insurance provider if the claim is settled in the doctor’s favor.
Many medical practices require their staff members to have professional liability insurance. Because of the risk associated with negligent doctors, many insurers choose not to provide coverage for these policies. The Federal Trade Commission states that insurers in these industries may require a particular malpractice coverage. If the doctor’s professional liability insurance policy is high enough, the insurer can use it to create a layer of protection. This means the insurer can use the doctor’s malpractice policy to pay for claims related to the doctor’s negligence. The insurance company can cover the doctor’s professional liability insurance premiums. This can help protect medical practices that hire doctors who would otherwise be uninsurable.
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Physicians who are uninsurable because of poor medical histories may still try to practice medicine. By requiring physicians to maintain professional liability insurance, medical practices can help to deter negligent doctors from working in their facilities. This is because the insurance policies contain a clause that removes coverage from doctors deemed uninsurable by the insurance company. This can be problematic for a negligent doctor who needs professional liability insurance to work at a hospital or private practice. The hospital or physician’s office can use this clause to remove the doctor from the practice. This can be particularly effective for hospitals that treat patients with severe injuries and a high risk of malpractice claims.
Physicians with professional liability insurance can show patients they are quality healthcare providers. This is because having professional liability insurance indicates that doctors are aware of the risks of working in the medical field. Patients seeking medical care from a provider with professional liability insurance are less likely to file a malpractice claim. This is because the patient will likely be treated with care, compassion, and concern during their visit. If a patient has a good experience, they are less likely to file a malpractice claim. This can help reduce the number of malpractice claims against a practice, reducing the cost of professional liability insurance over time.
Choosing whether to buy professional liability insurance is a serious decision for any doctor. Doctors who work in hospitals are usually required to have insurance. However, private practice doctors have more discretion in deciding whether to buy coverage. A doctor who chooses to go without professional liability insurance is choosing to accept significant financial and emotional risks. The decision to purchase insurance can help protect patients’ health and the doctor’s financial well-being.
