What Is Malpractice Insurance?
To err is human and mistakes can be made even by specialists but in medical field
mistakes can have a huge impact on the health of a patient, especially when they occur due to negligence. In such cases patients can file a lawsuit against the doctor or the hospital. Doctors who practice privately can incur major financial loss and their career will be at a stake if they are not covered by malpractice insurance. It's become mandatory in some states for doctors to purchase this kind of insurance. A major reason for doctors not buying malpractice insurance is the huge amount of premium that needs to be paid. Some doctors even quit their practice due to the huge cost involved in buying this type of insurance policy.Hospitals, Financial services and real estate companies also take malpractice insurance apart from professionals who practice individually. Medical Institutions purchase this type of insurance for their employees who include doctors, nurses and surgeons. Most of us usually assume that malpractice insurance is a must only for doctors but even other professionals such as lawyers; international medical students, counselors and psychologists are in need of professional liability insurance or malpractice insurance. The amount of premium paid depends upon the state in which the hospital or financial services company is located and the type of profession practiced.
Even though malpractice insurance is expensive to purchase, it offers huge protection to the professionals when they are sued by clients or patients. Just the way life insurance covers the financial loss to some extent caused due to a person's death, malpractice insurance covers the liability to a certain extent in case of a professional's career. One advantage for doctors working in a private or public medical institution is that half of the premium amount is paid by them whereas the remainder is borne by the institution or medical hospital. The entire premium needs to be paid in cases where doctors run their own clinics.
Being an expert in a chosen field does not imply that mistakes will not occur. It's highly imperative for professionals such as doctors and lawyers to purchase malpractice insurance for safeguarding their career when a lawsuit is filed against them. Even though the need for using this kind of insurance doesn't arise often, this insurance coverage will act as a safety shield. Purchasing malpractice insurance has been made mandatory in few states in order to reduce the no of mistakes made by doctors and other professionals while they are discharging their duties. The premium rates are regulated in some states to ensure that the professionals do not have to pay rates, which are unfairly high. Since the regulations differ from one state to another, the prices of malpractice insurance are higher when compared to other states. In the event of being covered by this kind of insurance, professionals can carry out their practice without fearing that they would incur a sudden financial loss.
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