Vicarious Liability Medical Malpractice, The Challenge with Medical Malpractice Insurance

Today, we worked on three different physician’s policies which required some adjustments.  The challenge with medical malpractice insurance is that physicians’ generally (that is, when they have ‘claims made’ malpractice insurance policies) cannot begin a new policy without incurring two potential problems:

1)      they open an attractive deep pocket with a secondary set of limits (which can be a good thing because it protects the insured and draws a line in the sand between one practice and another), however, there is a belief that where there are limits of insurance there are high demands for settlements.

2)      Each claims made policy carries with it an expensive tail premium.

Because of these two problems, we work hard where possible,  to cover the entire physician practice exposure with just one policy.  There is certainly enough insurance with just One Million dollar  limit per incident ; And, as long as the practice will allow for one policy (i.e. the additional practice is not covered by a  large ‘self-insured’ academic or large group policy), then keeping just one policy keeps it simple and much less expensive.

The underwriting adjustment that must be made to the group policy is called an entity, vicarious liability premium.  Entity premium is 10 % of the underlying physician’s premium so when a doctor is moved off of a policy, the underwriter develops that same 10 % and attaches it to the entity;  increasing the overall entity premium for the group (appropriately to reflect the physician’s affiliation.  And, the physician carries his/her own separate policy with the flexibility of covering them at any and all locations where needed.

 

Comments

You need to log in to comment.
  1. Re: Clinical Research Liability

    Do you recommend purchasing a tail insurance or a occurrence based insurance and add a tail policy afterwards...

    -- Ann Shang

  2. Re: Clinical Research Liability

    I am talking with a CTO in the US ( I am in US too) to be a contractor doing clinical trials on a part...

    -- Ann Shang

  3. Re: The Podiatrists Market Research Report states that demand for podiatrists will likely benefit from healthcare reform.

    My husband has been feeling a lot of pain in his feet recently. We think this could be due to his posture...

    -- Sarah

  4. Re: Developing Walk In and Urgent Care Centers

    It's good to see that urgent care facilities are becoming more and more prevalent. You are right that...

    -- Caden Dahl

  5. Re: Functional Medicine Malpractice Insurance

    Interested in obtaining information for FM MP

    -- Cynthia Shughrue

  6. Re: Visiting Residents/Intern/ Fellow (Hands On) Medical Malpractice Insurance

    I am a final year medical student planning to do a couple of electives in medical school in the US and...

    -- Varun

  7. Re: Medical Malpractice Insurance Benefits, expanding to outpatient facilities

    I like the idea of some of the cost returning to the normal discounted market after a few years of claims...

    -- Dave Anderson

  8. Re: Who Can Perform Liposuction Surgery?

    This is very interesting content! I have thoroughly enjoyed reading your points and have come to the...

    -- Re: Who Can Perform Liposuction Surgery?

    Thanks for helping me understand any licensed physician can actually perform this procedure as per the...

    -- Millie Hue

  9. Re: The Podiatrists Market Research Report states that demand for podiatrists will likely benefit from healthcare reform.

    Thanks for giving me more information about the benefits of podiatrists from the healthcare reform. ...

    -- James