NHP National Health Partners

Malpractice Insurance

The majority of employers and healthcare providers offer to pay for malpractice insurance as one of the primary benefits of being their employee.

You need to ask the employer if they pay for malpractice insurance, or if you are expected to purchase your own. National Health Partners can help you negotiate benefits, such as Malpractice Insurance. Just e-mail your questions to nhpartners@nhpartners.com.

There are several types of Malpractice Insurance Coverage offered. The three major types of Malpractice Insurance policies are:

  • Claims Made Insurance
  • Occurrence Insurance
  • Tail Insurance

Claims Made Insurance covers any insurance claims or suit against you only while under current employment of the employer when the policy was issued. Otherwise, you must pick up a policy that covers you if you are sued while out of employment with that employer (referred to as a Tail policy which from specialty to specialty may vary in cost). For example, had a patient (whom you treated prior to departing that employer) sued you after you left that employer; then you must have other coverage during that lapse of time of coverage from that employer to a new employer.

Occurrence Made Insurance covers any claim made regardless of whom you are employed by provided that the Insurance Carrier was the insurer at the time of the treatment of the patient. This policy has tremendous value because it covers you indefinitely. Because it is so expensive, many employers do not offer it. If you are lucky enough to get this policy, it is a great benefit!

Tail Insurance Refers to a policy that insures you in the event a suit arises after you have left employment. This policy is very costly; on the order of 1½ to 2 times the cost of an annual Claims Made policy. Some times your new group may pick up the Tail policy, other times the previous group may provide the policy. This is a negotiable area to consider when signing a contract.  A newer policy that insurance companies are offering at less costly rates is called a Prior Acts Policy which covers any claim after you have left your previous employer.

Liability coverage on physicians varies greatly from specialty to specialty. Premiums for coverage vary significantly from state to state and regions of the country. Liability coverage on physicians varies greatly from specialty to specialty. Premiums for coverage vary significantly from state to state and regions of the country.