Malpractice insurance is a kind of preventive measure that has to be taken by professionals such as doctors, lawyers, nurses, psychologists, etc. While the basic purpose of this insurance is similar for all of them, the rates may vary considerably.
In a day and age where lives are becoming highly commercial, getting an insurance cover for almost everything you own and do is essential. From your car, to your house, to your health, your life, and even your profession, you need an insurance cover that will protect you when you are in troubled waters. There is particularly one type of insurance that covers professionals in such events, known as malpractice insurance.
What is Malpractice Insurance?
Malpractice insurance is an insurance that is availed by health care professionals to cover them in case of any claims of medical malpractice against them by patients. For instance, in a case of negligence on part of the health care professional, or in case of any intentional effort to harm the patient, a patient can sue the person in question. In such an event, malpractice insurance covers all the financial risks associated with such a lawsuit. From physicians, dentists, nurses, and even psychologists, this insurance is utilized by all these professionals to safeguard themselves.
Not only doctors and surgeons, even laboratories that conduct tests and optometrists are required to avail of this insurance. All these fields are sensitive and this type of insurance helps bear the brunt of an event that may cause problems. It is now also available for professionals such as lawyers and architects too. While one would assume that this is an easy way to protect oneself from professional hazards, what is important to know is that the premium rates are extremely high, and it is not easy to keep up with the related costs.
Malpractice Insurance Rates
The rates depend on a variety of factors, which include:
- The amount covered by a particular type of insurance may vary depending on the kind of premium you are paying. Such insurance polices can cover up to millions of dollars, but such a cover requires the payment of a heavy premium.
- Moreover, the rates and cover may vary depending on the state in which it is being applied for.
- The cost is also determined by the kind of profession you are in. For instance, the cost would be higher for surgeons, and slightly lower for nurses. Even so, the premiums are still extremely high even for nurses, and are based on the kind of medicine they are involved in.
- There are certain issues regarding the use of this insurance for various professions. For instance, deciding a premium for psychologists is difficult. However, in such cases, experience plays an important role. The premium amount is decided based on the experience of the professional, where a highly experienced psychologist will have a lower premium, and a lesser experienced psychologist will have a higher premium. Similar is the case with other professions, such as those of lawyers.
Medical malpractice cases, along with events of malpractice in other professions are on the rise, which is why having malpractice insurance is essential, in addition to ensuring utmost care in performing your job. Though this insurance protects your license, any suit of malpractice does tarnish one’s reputation considerably. As such, even if you are permitted to continue practicing, having your clients rebuild their trust in you is going to be extremely difficult. Do your research well, speak to a reputed insurance adviser, and based on the state laws, you should be able to utilize the best insurance type available to you.