4 Reasons Physicians Need Insurance
The practice of suing doctors for medical malpractice began to pick up steam in the middle of the 20th century and has continued unabated for the last 60 years. In an average year in the U.S., there are 17,000 lawsuits filed against physicians for medical malpractice. More than 34% of all doctors have been sued and more than 15% have been sued more than once. Several factors feed into this harsh reality. First, if doctors make mistakes, the results can be quite harmful to their patients. Second, it is difficult to be perfect; over the course of a career, doctors are likely to commit errors. This is borne out by the reality that older doctors are more likely to be sued for malpractice. Third, medicine is a proportionally lucrative career, implying that there is money to be made from suing the physician who caused you harm. Doctors, accordingly, buy insurance against medical malpractice. Here are four reasons why.
Cover the Costs of Legal Action
When you think about the results of a medical malpractice lawsuit, your primary focus is on the amount of a judgment or settlement. Before any suit is adjudicated or settled, however, there are large amounts of money spent in the legal processes. Because possible judgments can be so costly, it is important to have funds available to cover fees from lawyers as well as associated costs for depositions, transcriptions and videoconferencing through professional organizations like court reporters Phoenix. Thus, before having to deal with the cost of winning or losing a case, doctors need insurance to cover the courtroom costs.
Prevent Financial Destitution
Grievous physical harm experienced by a patient can conceivably result in a substantial judgment against a physician. In such situations, the court makes a judgment as to the “remedy” the physician must provide, which typically is expressed in financial terms. It may be the case that the doctor does not have the necessary financial resources. Thus, the physician can conceivably lose personal property, including a house and other assets, to cover the judgment. As expressed in a recent Forbes article, “You can lose a lot in a lawsuit, including your home, car and life savings. If you lose in court, you’ll have to disclose all of your assets, and you might lose money and property if you aren’t careful.” To prevent this eventuality, physicians purchase specific insurance to cover financial destitution.
Institutional Shortfall
As you may know, hospitals and other health care institutions that employ physicians carry liability insurance intended to protect the facility and the doctor. Over the years, however, doctors have learned not to rely on institutional liability insurance for several reasons. First, the company’s insurance will likely have certain set liability limits. Judges and juries may have no interest in honoring the insurance company’s financial limits and the doctor is responsible for covering whatever insurance does not. Also, institutional liability insurance is typically limited to physicians employed by the institution. Thus, if a doctor has moved on to another hospital and gets sued based upon an incident occurring during his previous employment, the former employer’s insurance will not cover the judgment. Physicians purchase insurance that covers institutional shortfall.
Protecting Peace of Mind
It is nerve-wracking enough to know that the physical well-being and life expectancy of other human beings depend upon judgments you make 100 times a day without having to worry about the possibility that you might be sued and brought to ruin by a single, simple error. Thus, perhaps the single most important reason physicians pursue various types of medical liability insurance is so they can practice daily without being overwhelmed by the possibility of legal action. In this sense, medical liability insurance is a lifeline to peace of mind that allows the doctor to continue practicing knowing that help is available should the situation arise.
Lawsuits are a tool that Americans can pursue to remedy harm perpetrated upon them. Sometimes medical providers also need the protection against lawsuits that only liability insurances can render.
