One of the first items lawyers consider in a malpractice case is the type of insurance the accused medical professional has and the liability coverage limits of the specific policy. Different types of insurance and liability limits warrant different case strategies.
If you are considering filing a medical malpractice claim, it may be helpful to learn more about medical malpractice insurance and how it can affect your case. There are two main types of medical malpractice insurance coverage: claims made and incident coverage.
Medical malpractice coverage for claims
Similar to home or auto insurance policies, claims insurance policies cover malpractices that occur during the policy period. However, unlike traditional home or auto insurance, in order for a claim to be covered, it must also be reported to the insurance company during the active policy period.
If a claims malpractice policy is changed to a new insurer or canceled for any reason without provisions to extend coverage beyond the coverage period, no benefits will be paid, even if the malpractice act occurred while the policy was in effect. valid. Instead, a medical provider may be personally responsible for the costs associated with your claim, with no liability limit.
Your lawyer knows how to explore the insurance coverage of the medical provider accused in your claim to determine exactly how the coverage, or lack of coverage, may affect your case.
Medical Malpractice Policies
An occurrence policy insures any incident that occurs while the policy is in force, regardless of when a claim is filed, even if the policy has been canceled since the malpractice act occurred. Occurrence policies take into account current and future malpractice claims, although the liability limits are those in effect when the incident occurred.
Under an occurrence insurance policy, your medical malpractice attorney knows in advance of the lawsuit what the liability limits will be in your case and plans your case strategy accordingly.
How does malpractice coverage work?
Suppose an incident of malpractice occurred on July 1, 2004. The treating physician realized that there might be a potential claim on July 1, 2005, and notified the insurance company at that time. On July 1, 2006, a medical malpractice lawsuit was filed.
- A casualty policy in effect on July 1, 2004 would cover the claim, regardless of when the actual lawsuit was filed or the insurance company was notified.
- A casualty policy in effect on July 1, 2006 would cover the loss, provided the retroactive date is no later than July 1, 2004.
- A policy made for claims in effect on July 1, 2004, but terminated on July 1, 2005 would deny the claim because the active coverage period ended before the claim was reported to the insurance company. If the doctor did not purchase “tail” coverage to extend the provisions of your 2004 malpractice insurance, the doctor may be personally responsible for costs associated with this malpractice claim.