Malpractice

[chislerMD]

I will be graduating in a few months and had a question for the group. My contract comes with the usual malpractice coverage of 1 million per occurrence 3 million per year. I was wondering if this was usually enough and if not does anyone buy more (kind of like umbrella insurance for malpractice). Is this expensive? Thanks

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[deleted109597]

It's plenty. They don't usually sue you for more, because they know they can't get it. That is, unless you have more insurance. Industry standard is fine.

 

[The White Coat Investor]

It's fine.

 

[gamerEMdoc]

It's plenty. They don't usually sue you for more, because they know they can't get it. That is, unless you have more insurance. Industry standard is fine.

Yep, the more you buy, the more you'll get sued for.

 

[southerndoc]

Depends on your state. In most states this is all you need.

 

[Venko]

My wife and I have umbrella policies (2 million each) which would kick in in the event of a very large malpractice suit, but it's major role for us is that if We are in a car accident, or someone slips on our property etc and sues either of us it can cover the outstanding balances. Although nothing has ever happened to us, I personally find peace of mind knowing that out life and earnings are protected very heavily in these ways.


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[southerndoc]

My wife and I have umbrella policies (2 million each) which would kick in in the event of a very large malpractice suit, but it's major role for us is that if We are in a car accident, or someone slips on our property etc and sues either of us it can cover the outstanding balances. Although nothing has ever happened to us, I personally find peace of mind knowing that out life and earnings are protected very heavily in these ways.


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Unless your umbrella policy is underwritten by your malpractice insurer, then it won't cover professional litigation. Umbrella policies are for successful litigation amounts that exceed your homeowners or car insurance.

 

[Venko]

Unless your umbrella policy is underwritten by your malpractice insurer, then it won't cover professional litigation. Umbrella policies are for successful litigation amounts that exceed your homeowners or car insurance.

You're probably right that I'm thinking of it incorrectly. I've sent a message to my agent and I'll check.

Update: southern you're exactly right. It doesn't cover malpractice awards above my coverage limits.


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[chislerMD]

Yeah I just got umbrella and it doesn't cover malpractice. Just personal liability. Still feels worth it for 2 mil in coverage for 200 a year.

 

[gamerEMdoc]

Yeah, everyone should have umbrella coverage for personal litigation. Its dirt cheap to add on to your auto or homeowners insurance. But it doesnt kick in for malpractice claims unfortunately.

 

[emergentmd]

Better to have 300K than 1 Mil malpractice. They will sue for what they can get. Our SDG started at 1mil and smartened up and decreased it to 300K.

Doc A with 1 mil policy with frivolous claim. Ambulance chaser will look at it and see it the risk is worth it getting 1/3 of payoff = 300K+

Doc B with 300K with same claim. Ambulance chaser will usually not take it up if payoff only 100K

 

[The White Coat Investor]

Better to have 300K than 1 Mil malpractice. They will sue for what they can get. Our SDG started at 1mil and smartened up and decreased it to 300K.

Doc A with 1 mil policy with frivolous claim. Ambulance chaser will look at it and see it the risk is worth it getting 1/3 of payoff = 300K+

Doc B with 300K with same claim. Ambulance chaser will usually not take it up if payoff only 100K

I disagree. The goal is to have what everyone else in your area and specialty has. Not too little, not too much. You also want the plaintiff and their attorney to feel like they are well paid in the event they win (either a settlement or a judgment.) You want to play this game with house money, not your own. I think $1M does that. I don't think $300K does. When you go bare or have a low limit like $300K, they start wondering about your other assets. You don't want them doing that. You also don't want the insurance company saying "it's only $300K, this risk is all on the doc" and not providing you as robust a defense as they otherwise would.

I wouldn't feel comfortable with $300K, but if it is what everyone else has....there's at least an argument for it.

 

[Old Grunt]

You're probably right that I'm thinking of it incorrectly. I've sent a message to my agent and I'll check.

Update: southern you're exactly right. It doesn't cover malpractice awards above my coverage limits.


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It's a good idea though, since you also have a fairly reasonable chance of getting into a car accident and are a big target for personal injury lawyers.

Signed,

A guy married to a personal injury lawyer.

 

[Old Grunt]

I disagree. The goal is to have what everyone else in your area and specialty has. Not too little, not too much. You also want the plaintiff and their attorney to feel like they are well paid in the event they win (either a settlement or a judgment.) You want to play this game with house money, not your own. I think $1M does that. I don't think $300K does. When you go bare or have a low limit like $300K, they start wondering about your other assets. You don't want them doing that. You also don't want the insurance company saying "it's only $300K, this risk is all on the doc" and not providing you as robust a defense as they otherwise would.

I wouldn't feel comfortable with $300K, but if it is what everyone else has....there's at least an argument for it.

It's a really good point. Monetary damages don't stop at an insurance number and your assets are fair game as is your working wage via wage garnishment.