In 2005, less than one quarter of medical malpractice trials were won by the plaintiff in the case, but the awards were 17 percent higher than the median award in other tort trials, according to the Bureau of Justice Statistics. The high awards can devastate the finances of a health care professional, but medical malpractice liability coverage can help ease the burden for medical workers.
Liability coverage for health care professionals is insurance that financially protects doctors and other medical workers when courts award patients financial damages in a medical malpractice lawsuit. Some states and most hospitals require physicians to have a malpractice insurance policy to practice medicine. Insurance companies determine the cost of premiums for a medical malpractice insurance policy by the type of specialty the physician or medical professional practices and not on the history of the worker.
Advertisement Article continues below this adAccording to the American Medical Association, seven states require physicians to carry a minimum amount of liability coverage to practice. Seven additional states require doctors carry a minimum amount of coverage to qualify for coverage under state liability programs. State liability programs include caps on damages and compensation funds that pay patients in the event of a judgment. Colorado, for example, requires physicians to have coverage of a minimum of $500,000 for each incident and $1.5 million for the year. Specialists, such as chiropractors and massage therapists, have different minimum requirements under Colorado law. In addition to state laws requiring liability coverage, most hospitals require physicians to carry malpractice insurance to qualify for privileges in the facility.
While some hospitals and medical facilities have malpractice insurance policies to protect the organization, lawsuits may name medical professionals individually. Physicians and health care professionals are liable for part of the damages the courts award to the patient. Health care professionals such as medical assistants can obtain their own medical malpractice insurance policies to protect their interests in the event of a lawsuit.
Advertisement Article continues below this adIn addition to paying claims on behalf of the insured, malpractice insurance provides the health care professional with legal representation and investigates claims. Liability coverage can also provide health care professionals with peace of mind. Health care professionals can perform their job duties without the worry that their financial assets will be lost in the event of a lawsuit.