Why It Helps to Buy Medical Indemnity Insurance
Medical liability insurance is crucial for every practice, whether you have a staff or not. But it’s essential for physicians who work with patients in their homes. Nationwide, the average cost of a single medical malpractice claim is $2 million, according to a study from the American Medical Association. Because this cost is too high, many healthcare institutions offer medical defense funds designed to cover all liability claims up to the policy limit—usually $5-10 million. While these funds are intended to protect practices from the cost of a malpractice suit, they frequently don’t cover any associated costs (such as court costs and legal fees), which can add up quickly.
Medical malpractice liability insurance is designed to protect your practice or business from the cost of these types of claims. You’re probably familiar with personal coverage for yourself, but medical practice liability insurance protects the business entity—your medical practice. A typical malpractice policy for a physician working in their own home would include coverage for a bodily injury claim that occurred in their home office and protection against claims arising from professional negligence that takes place during an office visit.
Medical malpractice insurance will also include a variety of additional benefits. Worldwide coverage is standard, and you can add extra coverage for your staff and employees. You’ll also have peace of mind with attorney costs being covered. If you are sued, your attorney fees will be paid up to $250,000 or 1 percent of your policy limit (whichever is greater). And if you’re not liable in a claim, you’re covered too—your defense costs will be paid up to $100,000. These benefits should be important to any physician in their home office setting.
The medical indemnity insurance in Australia is usually only available to practices with a Medicare provider number. Applications should be made to the state or federal government. No medical indemnity insurance is available to practitioners with a Medicare provider number. Pre-approval is required to insure a small business or home practice. An insurance application must be completed by the CDPH and sent directly to the insurer with a copy of the license application supporting your application. The insurer will then review your application and request additional documentation from us. A letter of approval from the insurer is issued only after the insurer has completed its review.
Medical malpractice insurance covers all risks related to medical negligence. These include malpractice made by employees, attorneys, and other individuals. A Malpractice policy can help protect your practice or business against these claims. The costs for malpractice claims will be covered up to an agreed liability limit, and the policy pays for legal fees after a claim is won in court or settles for an agreed amount if you are found not liable in a claim the insurer makes no payment unless you agree, in writing, to pay any judgment entered against you (the policy may specify a maximum liability limit).