One of the first elements that attorneys consider in a malpractice case is the type of insurance the accused medical professional has and the limits of liability coverage of the specific policy. Different types of insurance and liability limits justify different case strategies.
If you are considering filing a medical malpractice claim, it may help to learn more about medical malpractice insurance and how it may affect your case. There are two main types of medical malpractice insurance coverage: made claims coverage and event coverage.
Medical Malpractice Claims Coverage
Like home or auto insurance policies, claims insurance policies cover negligence that takes place during the policy period. However, unlike traditional home or auto insurance, in order for a claim to be covered, it must also be reported to the insurance company during the active period of the policy.
If a negligence claim policy is switched to a new provider or canceled for any reason without provisions to extend coverage beyond the coverage period, no benefits will be paid, even if the act of negligence occurred while the policy was in effect. . Instead, a medical provider could be held personally liable for the costs associated with your claim, without a limit of liability.
Your attorney knows how to explore the insurance coverage of the medical provider accused in your claim to determine exactly how coverage, or lack of coverage, may affect your case.
Medical malpractice policies
An occurrence policy insures any incident that occurs while the policy is in force, regardless of when a claim is filed, even if the policy has been canceled since the negligent act occurred. Occurrence policies take into account current and future claims for negligence, although the liability limits are those in effect when the incident occurred.
Under a casualty insurance policy, your medical malpractice attorney knows when filing the lawsuit what the limits of liability will be in your case and plans your case strategy accordingly.
How does malpractice coverage work?
Imagine that a negligence incident occurred on July 1, 2004. The treating physician realized that there might be a possible claim on July 1, 2005 and notified the insurance company at that time. On July 1, 2006, a medical malpractice lawsuit was filed.
- An occurrence policy effective July 1, 2004 would cover the claim, even though the actual lawsuit was filed or the insurance company was notified.
- A claims policy in effect on July 1, 2006 would cover the claim, as long as the retroactive date is no later than July 1, 2004.
- A claims policy in effect on July 1, 2004, but terminated on July 1, 2005, would deny the claim because the period of active coverage ended before the claim was reported to the insurance company. If the doctor did not purchase “tail” coverage to extend the provisions of his 2004 medical malpractice insurance, the doctor may be personally liable for the costs associated with this medical malpractice lawsuit.