Frequently Asked Questions

Who is Covered?

Medical malpractice insurance coverage should be obtained for yourself, your entity (corporation, Limited Liability Corporation, Partnership, etc.) and your employees.

Coverage is needed for yourself because you are rendering the professional services. If you have a corporation or other entity, it can usually be reached in a malpractice suit because employers are held liable for the acts of their employees. It is important to protect the entity because it holds your business assets such as equipment and accounts receivable. It is important to cover your employees or to require that they maintain their own coverage to assure that their assets are protected.

In solo practice situations, insurance companies generally offer entity coverage sharing policy limits with the health care professional at no extra charge. If there is more than one health care professional in a group, coverage for the entity is usually given its own policy limits and the premium charge is usually about 10% of what all of the insureds in the group are paying.

On physician policies, employee coverage is usually available for nurses and other staff, sharing limits with the employer at no additional premium. However, some employees such as Midwives, Physician Assistants, Nurse Practitioners, and Certified Nurse Anesthetists require individual coverage at an additional premium. Any application completed for Malpractice insurance coverage should detail your employees and you should determine if all you employees are covered.

As with any overview, this insurance information is general and intended to help you make informed decisions. The actual policies available in your state may contain features not discussed above. An insurance policy is a contract between you and an insurance company. You should read and understand any policy that you purchase. If you have any questions, have the company or insurance broker or agent take as much time as you need to explain policy terms to your satisfaction.

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