Running a small medical practice doesn’t necessarily make for a small income. In fact, they are usually very profitable. Usually, these practices work very hard to establish lasting relationships with their patients.
Still, even the best small practices run the risk of mistakes. That’s why they need strong malpractice insurance. Setting up strong coverage means having adequate policy limits, deductibles and policy prices.
The Benefits of Malpractice Insurance
Nearly every medical practice and physician, by law, must carry malpractice insurance. It is a vital form of liability protection that covers the risks physicians pose to patients. Even the most careful physicians can make mistakes during the most routine care. This could cause immediate, prolonged or developing harm to the patient. Should problems arise, the patient might sue the practice because of the physical and financial hardships they might encounter.
Malpractice insurance will help physicians cover the costs of defending themselves. A strong policy might also help the physician compensate the plaintiff based on the settlement in the case. The policy might even cover lost revenue if the physician could not practice while in court.
Setting Up Your Coverage
It is easy to see why malpractice insurance is a benefit to any small practice. You likely can’t afford to settle or pay a judgement out-of-pocket. However, each practice must select policy limits that uniquely fit its needs.
Generally, you can buy coverage limits in $1 million increments. You will likely need to determine the amount of coverage that is right for you by looking at legal minimums. Often, the cost risks your business faces can help you determine the right limits as well. Small practices might need higher limits because doctors could be personally responsible for their mistakes.
Keep in mind, some policies will pay a certain amount per claim, but will also limit how much money they pay out over an entire period. Therefore, see if you have any annual maximums on your policy.
Most malpractice policies will also come with a deductible. These can range from quite low to very high. Taking too low of a deductible might raise your policy costs. Therefore, look at your revenue on hand. If you can afford to pay a higher deductible, you might save yourself policy costs in the meantime.
Setting up your malpractice coverage will require attention and care. Physicians should work with an experienced agent to determine what type of coverage most benefits them. For more information, contact one of our agents at 800.462.3401 for a malpractice insurance quote for small practices.