Medical Malpractice Insurance - What every physician should know when considering a policy to protect their practice
Medical Malpractice Insurance is an area of great interest to physicians in today's litigious environment. There has been much upheaval in the marketplace with insurance carriers coming and going. It becomes a task to remain familiar with the appropriate coverage options that you may need to properly protect your practice. To help you along in the process, the following are some brief explanations of terms often associated with the Medical Professional Liability policies available:

Claims-made coverage
A claims-made policy covers claims on the basis of when the claim is reported. The policy must be in force when the claim is made. These policy premiums are lower in the early years but grow as the exposure period grows. Upon cancellation, an Extended Reporting Period Endorsement (aka Tail) is required to be purchased under Pennsylvania State Law.

Occurrence Coverage
An occurrence policy covers claims on the basis of when the claim is incurred. It will provide coverage regardless of when the claim is made. No "Tail" coverage is required upon cancellation of this type of policy.

Professional Corporation, Association or Partnership Coverage
While this coverage is optional, it will provide protection to the corporation. The insuring company will agree to defend and pay damages in the name of and on behalf of the corporation, partnership or association.

Allied Health Professionals
Coverage is available for employees of the insured physicians for coverage limited to the activities as an employee. This is an optional coverage at additional cost.

Locum Tenans Coverage
Optional insurance that may be considered to provide coverage for a temporary or substitute physician covering the insured's practice during vacations, illnesses or unforeseen circumstances. It is insurance coverage limited to specific short periods of time.

Prescription Writing/Retired Physicians
A retired physician may wish to consider a special policy that will enable the physician to write prescriptions for themselves and immediate family members only.

This brief summary should assist you when you are considering the purchase of malpractice insurance protection for your practice. It is also important to review the various differences in the policy language itself when considering which policy to select. You should also pay close attention to deductible options, consent to settle clauses as well as provisions for death or disability.

*Policy Limits
Physicians conducting business in Pennsylvania are mandated by state law to carry basic limits of $500,000 per claim / 1.5 million annual aggregate. MCARE Fund limits provide excess limits to physicians conducting business upon payment of a surcharge to the state. The current limits are $1 million per claim / 3 million annual aggregate.

*For Pennsylvania physicians only.

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