Professional Indemnity Insurance – Pricey for Doctors
Errors and Omissions Coverage
Professional indemnity insurance is provided for certain professionals in one of two forms. Errors and omissions insurance is taken out by legal, real estate, engineering, architectural, and financial professionals to safeguard them against allegations of negligence. Therefore, it’s often purchased by lawyers, stockbrokers, insurance agents, and real estate agents.
A Popular Type of Professional Indemnity Insurance – Medical Malpractice Insurance
Medical malpractice insurance is the most recognized type of professional indemnity insurance, and is available to physicians in one of two coverages. Coverage A is designed to handle malpractice claims that result from a medical accident that causes harm to the claimant. Coverage B, often taken out by surgeons, is designed to protect doctors from group-type liability claims.
The High Price of Medical Malpractice Insurance
Medical malpractice is a necessity then for doctors, especially those working in the emergency room and areas such as neurosurgery. It’s also quite costly. Some plans provide coverage at $100,000 per year. Needless to say, doctors can become rather incensed about the amount they must pay in premiums. Nevertheless, physicians also know the coverage is important and often opt for plans that provide more than the standard coverage, which is $1 million/$3 million.
Reducing Premiums
However, what most physicians do not realize is that higher limits will not exactly deter a doctor from getting sued. Even with the standard coverage, liability is still difficult to prove, especially if the plaintiff in the case is burdened with a lot in the way of medical debt. Too much coverage then can actually make it easier for a doctor to get sued.
Think about your Motivation for Securing Coverage
Yes, you do need malpractice protection when you are a doctor. However, your decision should be based more on practicality versus the fear that you could lose your personal assets.
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