Medical Malpractice Insurance
Medical professional liability insurance, sometimes known as medical malpractice insurance, is a type of professional liability insurance that protects physicians and other licensed healthcare professionals from liability arising out of wrongful practices leading to bodily injury, medical expenses, or property damage. It also protects them from the cost of defending lawsuits related to such claims.
It also covers liability for personal injury such as mental distress. The complication involved in discovering negligence results in a higher percentage of premium dollars going toward defense and cost containment (DCC) expenses. Medical liability insurers spend large sums of money investigating and defending claims where there is an adverse patient outcome not resulting from negligence.
There are two basic types of malpractice insurance:
- Claims-made: Many insurers write on a claims-made form basis where a policy in effect at the time a claim is reported responds for the loss, while the policy remains in force and during any applicable extended reporting period.
- Occurrence-made: This policy was more popular in earlier times. It covers a loss that “occurs” during the policy period, regardless of when the claim was made, and even after the policy has been canceled.
In summary medical negligence insurance costs have steadily risen over the past years especially since the medical sector has been hit with a higher frequency and severe client claims.
This has been fueled by the growth and popularity of litigation entities many of whom work on a contingency fee basis. As a result, mutual funds have been forced to pass these costs on to all their members, irrespective of their individual track records.
Securita Re has put in place a competitive and unique product that particularly targets the NHS- based surgeons and workers.