Steady hands and sharp minds make mistakes, which is why doctors need to protect themselves.
Every year in the U.S., an average of 20,000 lawsuits are filed against medical professionals. Most of which are for unintentional mistakes or lapses in judgment.
These types of lawsuits cost those working in the healthcare industry billions. What’s worse, doctors and nurses lose their license to practice medicine and their livelihood.
Have you ever asked yourself how much is medical malpractice insurance? Continue reading to find out the details about the insurance and its costs.
What is Medical Malpractice Insurance?
Medical malpractice insurance is a type of liability insurance. It’s structured to protect those in the medical field like pharmacists, doctors, physicians, and nurses.
When a patient considers suing a doctor, liability coverage kicks in. This coverage protects medical professionals when their actions result in hurting a patient.
This includes medical expenses, bodily injuries, and or property damage.
For example, a diabetic patient checks in to the hospital to have his or her foot amputated. The surgeon wrongfully amputates the wrong foot. To save the patient’s life, the correct foot must be amputated as well
The end result is the complete disability of the patient. The patient files a lawsuit but the surgeon avoids paying anything out of pocket because the insurance covers the negligence.
What Exactly Does Medical Malpractice Cover?
All medical malpractice insurances have liability coverage that blankets negligence. However, there are two different types of policies—Claims Made and Occurrence Made.
Claims made policies only protect the medical professional when the policy is in effect. Canceled policies due to non-payment or other reasons will not receive liability coverage. This includes incidents that happen when the policy was active.
Occurrence-Made policies cover the medical professional during the policy period. Any claim made during the policy receives coverage even after the policy cancels.
These policies cover expenses such as:
- Punitive damages
- Settlement fees and costs
- Attorney’s fees and courts costs
- Medical damages
Always check with the insurance provider for policy specifics and benefits.
How Much Is Medical Malpractice Insurance?
Like any type of liability insurance, the cost of medical malpractice insurance varies per policy. Also, the state issuing the policy has a lot to do with the final cost of the insurance as well.
The level of medical influence also affects the cost of the insurance. A physician may pay a higher premium than a nurse practitioner.
On average, basic medical malpractice insurance costs just under $8,000 a year. Add state-based regulations and fees and that cost may change significantly.
Surgeons can expect to pay more than triple the amount of the average cost.
Consider Obtaining Malpractice Coverage
Mistakes do happen, but they don’t have to be the end of your career. How much is medical malpractice insurance? It’s pennies considering how you’d pay a patient if you didn’t have it.
Do more than just insure your medical practice. Take a look at our business guide for insightful ways to take your business to the next level.