Guide of policy limits of malpractice insurance: For Doctors.

When caring for patients, having peace of mind is essential. Medical malpractice insurance protects you from lawsuits alleging negligence or mistakes, but it's important to understand the specifics of your policy. One key element is your policy limits, which outline the maximum amount your insurer will cover if you're sued.

Understanding Policy Limits

Policy limits act as a financial safety net in two main areas: damages awarded to the plaintiff and legal defense costs. Damages can include compensation for medical expenses, lost wages, pain and suffering, and other losses the plaintiff may incur. Legal defense costs refer to the lawyer’s fees and other court-related expenses covered by your insurer.

Types of Medical Malpractice Policy Limits

There are two primary types of policy limits. The per claim limit is the maximum amount your insurance company will pay for a single malpractice claim, regardless of the number of claims made in a year. The aggregate limit is the total amount the insurer will pay for all claims during the policy period, usually one year.

Example

If your policy has a limit of $1,000,000/$3,000,000, the insurance company will cover up to $1,000,000 for each individual claim. However, the total payout for all claims filed during the year is capped at $3,000,000, no matter how many claims are made.

Choosing the Right Limits for Your Needs

Selecting the appropriate policy limits is not a one-size-fits-all decision. Several factors should be considered, including your specialty and practice setting. Higher-risk specialties, like neurosurgery or obstetrics, often require higher policy limits due to the potential for larger damage awards. Similarly, if you work in a high-risk environment, such as a hospital emergency room, you may need more coverage than a doctor in a private practice. Additionally, state malpractice damage caps can influence the level of coverage required, as some states limit the amount of non-economic damages awarded in malpractice cases.

If you're unsure where to start, consulting a broker can help you navigate these decisions.

Why Work with a Broker?

Selecting the right coverage can feel overwhelming, but a medical malpractice insurance broker can make the process easier. At Castelo Insurance Group, we go beyond simply providing quotes—we serve as your risk management partner. We have access to all major insurance companies, allowing you to compare rates and coverage options to find the best match for your needs and budget.

Beyond Policy Limits: Additional Coverage Options

A skilled broker can also help you explore additional coverage, such as excess or umbrella insurance, which provides extra protection beyond your base policy limits. This additional coverage can be vital in ensuring complete peace of mind.