All You Need to Know About Medical Malpractice Insurance
- Adit Bhatnagar
- Jun 29, 2022
- 5 min read
Medical professionals and organisations face increasing risks when carrying out their medical duties. They are the hardest-working professionals in the world, without a doubt. They study for 7+ years to gain the title and power to save lives, but, unfortunately, many of us forget they are humans too, and mistakes could occur in this complex profession.
The risks are mainly related to liability to their patients. Patients can easily sue and blame a doctor for bodily injuries, sickness, etc, due to their medical advice or activity. So, one mistake could lead to a hefty lawsuit and damage the reputation of the professional and the organisation.
These risks are why medical professionals and organisations should purchase medical malpractice insurance. The article will explain how important this insurance is and what it covers during challenging situations.
What is Medical Malpractice Insurance?
Lawsuits could occur when a patient or their family believes that the healthcare professional’s advice or medical activity caused the patient’s medical harm or death. One lawsuit can destroy a doctor’s reputation and all they have worked for. However, they never intend to cause damage and try their best every second when on duty.
Medical malpractice insurance is professional liability insurance for medical professionals and healthcare organisations. This insurance policy protects medical professionals from lawsuits against them regarding their professional negligence, error or decisions.
What does Medical Malpractice Insurance cover?
Medical Negligence
Medical negligence can happen during diagnosis, treatment, or as part of the advice given for treatment after an illness. No matter how hard a doctor tries, there are cases where a doctor can not successfully complete an operation or makes an error that negatively impacts the patient. These errors can be caused by a lack of knowledge, tiredness or a freak accident.
Even if the medical professional tried their best, the patient and family may still blame them and accuse them of negligence. For example, in Hong Kong, a doctor was sued by the family of a top banker who died after Botox injections. The family appealed that the doctors didn’t advise the patient about the possible risks. They demanded action against the doctor’s license and hefty compensation.
Is Medical Malpractice Insurance a Must?
Negligence cases are precisely why medical professionals require medical malpractice insurance to cover their liability. The insurance will help the doctor fight the case and prove innocence. It will also pay fines, compensation, and settlement costs if the case is lost. The law takes medical negligence very seriously, but the professionals try their best to avoid it in almost all cases.
Good Samaritan Acts
There are also situations where a victim may need urgent medical attention out of the hospital (on-site). If a doctor is available near the situation(area), they may need to act quickly and make medical decisions on the spot. In these situations, the healthcare professional is still liable for their actions even if it is a good Samaritan act.
Victims can sue liable parties if their actions cause harm. For instance, an off-duty doctor helping after a road accident may cause infection if tools aren’t sanitised, risking the victim’s life. The victim’s family could sue for off-duty negligence.
Will Medical Malpractice Insurance Cover Good Samaritan Acts?
Thankfully, medical malpractice insurance provides good Samaritan act liability. Good Samaritan acts protect volunteers, rescuers or off-duty doctors from civil liability after delivering emergency assistance to a victim. The insurance will cover their liability and protect against lawsuits from their medical actions.
Legal Protection And Damage Costs
As discussed, these errors/accidents happen and can quickly turn into lawsuits. But what comes after? Dealing with medical lawsuits is complex and very expensive for a medical professional or organisation. Experts must conduct an intense investigation to analyse the situation and gather evidence. Therefore, an experienced lawyer needs to be hired for advice and to study the allegation. All before the case has even begun.
As the case begins, the lawyer’s fees will continue to increase, and if lost, the accused professional will have to pay a large amount of compensation, fines and settlement costs. These costs can eventually add up to hundreds of thousands and more, depending on the severity of the allegations.
Will Medical Malpractice Insurance Cover Legal Cost?
Legal expenses are almost impossible to pay without diving deep into savings or ruining the organisation’s financial plan. Fortunately, when medical professionals and organisations purchase medical malpractice insurance, the insurance will reimburse these costs. Moreover, fighting a case can be stressful in itself; one shouldn’t have to worry about the costs of defence.
Loss of Document
The medical industry is different in every country and city. It is an industry that relies on essential documents, sensitive information and online forms. The documents, online or offline, are crucial for professionals and patients, as they help them understand the medical problem and perform the proper procedure. These documents include patient information, past medical history forms, invoices, etc.
However, there is always a chance of these documents getting lost in the institution or by the professional. In such cases, the medical party must do their best to recreate or find the documents. Such problems can end up being costly to do re-tests and inform patients.
How will Medical Malpractice Insurance Cover Loss of Documents?
Medical malpractice insurance will cover these costs and help quickly solve the problem of loss of documents. Medical professionals have a lot on their minds and a lot of pressure. Hence, these mistakes can happen, and they shouldn’t have to stress even more.
Types of Medical Malpractice insurance
Claims-made policies:
Only cover claims if the policy was in effect when the treatment happened and when the lawsuit was made.
For example, this type of medical malpractice insurance will not provide coverage if, after a year of an operation (the policy expires), the patient falls ill and sues the doctor and the establishment. Therefore, the lawsuit and treatment both must be within the policy duration.
Occurrence policies:
Cover any claim made on a treatment that occurred while the policy was in effect, even if the policy has since expired.
This type will cover lawsuits even if the policy expires as long as the treatment occurred during the policy. Therefore, if the doctor did the operation during the policy, no matter when or if the lawsuit is submitted, the insurance will cover it.
Who Needs Medical Malpractice Insurance?
If you advise or work medically on your patients, you need this insurance to protect your liability. Medical professionals and institutes include dentists, physiotherapists, nurses, doctors, hospitals and clinics.
Insurance can be a lifesaver when things go wrong. As lawsuits are extremely costly, this insurance is the best financial cover. Additionally, one should get the best lawyers when dealing with such serious claims, and cost shouldn’t be a deciding factor.
The insurance provides peace of mind against a broad range of claims. Therefore, professionals do not have to worry about sudden claims and just do their best to save lives and be the heroes they are.
Medical malpractice insurance is perfect for all medical and healthcare professionals and organisations.
Medical Malpractice Insurance FAQs
What types of incidents can lead to medical malpractice lawsuits?
Medical malpractice lawsuits can arise from misdiagnosis, surgical errors, incorrect treatment plans, or failure to obtain informed consent, among other incidents related to patient care.
How can medical malpractice insurance help with legal defence costs?
Medical malpractice insurance typically covers legal defence costs, including attorney fees and court expenses, ensuring that medical professionals can defend themselves against claims without facing financial strain.
Are there specific exclusions in medical malpractice insurance policies?
Yes, many medical malpractice insurance policies may exclude coverage for intentional misconduct, criminal acts, or claims related to non-professional conduct, so it’s crucial to review the policy details carefully.
To Learn More about medical malpractice insurance and cover medical professional liability in Hong Kong and Asia, contact Red Asia Insurance.
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