What is medical malpractice insurance?

 

Medical malpractice insurance is professional liability insurance for physicians. Patients, or their families, may file lawsuits and seek damages against physicians if they believe medical negligence has occurred and resulted in health problems or wrongful death. Medical malpractice insurance offers physicians protection if such a claim is made.

 

What kind of insurance policies does MAG Insurance Agency offer?

 

MAG Insurance Agency works exclusively with MedPro Group and can write Occurrence, Claims-made, and Convert to Occurrence® insurance policies. MAG Insurance Agency also offers all lines of property and casualty insurance coverage – such as cyber security, E&O, D&O, EPLI, crime, etc.

 

What is an Occurrence policy?

 

An Occurrence policy covers any incident that occurs (or occurred) while the policy is (or was) in force, regardless of when the incident is reported or when it becomes a claim. For example, if a claim is made today based on care that was rendered in 2018, the 2018 Occurrence policy responds. Occurrence policies have three especially valuable benefits:

1. Confidence: allows you to keep in place the annual limits you buy.

2. Flexibility: doesn’t require tail coverage – you can practice when and how you choose.

3. Value: when including the cost of tail coverage, Occurrence policies are less expensive than Claims-made policies.

 

What is a Claims-made policy?

 

A Claims-made policy covers claims that occur from incidents or events that happen and are reported to the insurance company while the policy is in effect. For example, if a claim was made in 2019 based on care that was provided in 2015, the 2019 Claims-made policy will respond as long as the incident occurred after the policy’s retroactive date and if the policy is still in force. (The retroactive date is the date that is stated on a Claims-made policy indicating when coverage first begins.)

 

What is a Convert to Occurrence® policy?

 

A Convert to Occurrence® policy makes it possible for you to convert your Claims-made coverage into Occurrence coverage.

 

What is tail coverage, when do I need it, and how much does it cost?

 

Tail coverage protects you against all claims arising from professional services that were performed when your Claims-made policy was in effect but the claim was reported after the termination of the policy. Since Claims-made policies do not cover claims made after the termination of the policy, you need to secure tail coverage (an extended reporting endorsement) when you move your coverage from one carrier to another or stop practicing. If you cancel your Claims-made policy, you do not have coverage unless you have either secured tail coverage or your new carrier covers your prior acts back to your retroactive date. Tail coverage is expensive – sometimes costing more than 200 percent of a physician’s current, undiscounted rate. It also typically has to be paid within 30 days of a Claims-made policy’s cancellation. But if you switch to a MedPro Group policy, MedPro will, in most cases, cover your liability for acts prior to the policy’s inception. If you are a physician in Georgia, contact Donnie Rice at 470.446.4198 or drice@mag.org to see how you might benefit from a MedPro policy.

 

Will I lose my tail coverage if I switch to a MAG Insurance Agency/MedPro medical malpractice policy?

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The majority of physicians who switch to a MedPro Group policy qualify for free tail coverage after they fully retire (if mature Claims-made) and have been insured by MedPro for at least one year. Contact Donnie Rice at 470.446.4198 or drice@mag.org for details.

 

What does “consent to settle” mean?

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MedPro’s consent to settle provision means that MedPro will never settle a liability claim without your consent. With some other insurance carriers, you could be subject to binding arbitration, a peer board review, or a “hammer” clause that could place your personal assets at risk.  

 

How important is Cyber Liability coverage?

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With the use of electronic medical records and the proliferation of smartphones, laptops, and tablets in medical practices, your risk of cyber liability exposure continues to grow. MedPro Group’s cyber and privacy liability insurance is provided at no additional cost to you, and it covers:

1. Enterprise security events: unauthorized access to your computer systems that results in damage or alteration of data, transmission of harmful software code, or denial of access.

2. Privacy injury: Privacy breaches involving loss, accidental disclosure or theft of protected information, common law invasions of privacy, and the violation of privacy regulations that are related to the use or control of protected personal information.

3. Privacy regulation liability: violations of HIPAA or other similar state, federal, and foreign identity theft and privacy protection statutes, rules, and regulations.

4. Reimbursement for expenses that are related to crisis management, fraud response, public relations, forensic and legal matters, or data recovery.

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What are policy limits?

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There are two types of policy limits for your medical malpractice insurance, including a per-occurrence limit and a total aggregate limit.

For Claims-made policies, the per-occurrence limit is the maximum amount the carrier will pay on one claim arising from an incident that occurred and was reported during a given policy period for as long as the policy is still in effect. Your annual aggregate limits are the maximum amount the carrier will pay for all claims arising from incidents that occurred and were reported during a given policy period for as long as the policy is still in effect. Since Claims-made policies provide limits for a given policy period, only the current set of limits are available to pay claims arising from all years of practice covered since the policy’s retroactive date.

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For Occurrence policies, the per-occurrence limit is the maximum amount the carrier will pay on one claim arising from an incident that occurred during a given policy year. Your annual aggregate limits are the maximum amount the carrier will pay for all claims arising from incidents that occurred during a given policy year. Occurrence policies provide a separate set of limits for each year you buy the policy. The limits collected under the duration of the policy remain available to pay future claims based upon incidents that occurred during a given policy period.

 

How do I know if my carrier’s legal team is competent?

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Ask them how many claims they have been able to close without payment, their success rate when they go to trial, and how they prepare their legal teams for future cases.

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MedPro Group has managed more than 400,000 claims since it was founded more than 120 years ago. From 2011-2020, MedPro closed 80 percent of claims without payment – and of those that went to trial, it won 90 percent. MedPro has also established advisory boards that are made up of experienced health care professionals who create case studies of past claims and offer insights to avoid similar circumstances in the future.

 

Who is covered?

 

MAG Insurance Agency, through MedPro Group, offers medical malpractice insurance to physicians in a wide range of specialties. Contact Donnie Rice at 470.446.4198 or drice@mag.org for more information.

 

Will I have a primary contact at MAG Insurance Agency?

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Donnie Rice will be your advocate and MedPro liaison. He will help you connect with the right claims managers and risk specialists when it is needed. You can reach Donnie at 470.446.4198 or drice@mag.org.

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