When searching for liability insurance, educate yourself on medical liability insurance key terms so that you understand your coverage and insurance company provider responsibilities. Every profession utilizes language or terminology specific to their practice, and the medical insurance world is no exception.

Knowing and understanding insurance language helps you find doctor malpractice insurance, dental malpractice insurance, nursing malpractice insurance or other healthcare liability insurance with the protection you want when faced with malpractice claims. In your search for professional liability insurance in the healthcare industry, consider the following:

1. Discover the difference between a medical liability insurance agent and a medical liability insurance broker.

2. Understand the word "claim" as it relates to your insurance.

3. Understand what settlement clauses and fee responsibilities mean within your medical liability policy.

Action Steps
The best contacts and resources to help you get it done

Decide whether you want an 'agent' or a 'broker' to locate your medical liability insurance company

A medical liability insurance agent is committed to one insurance company, so the agent is able to give you a quote only from his or her company. When it comes to a medical liability insurance broker, you are that broker's client, so the broker wants you to receive the best quote possible from one of many reputable insurance companies. Check with friends, business associates, etc., for recommendations, and ask the broker to supply credentials and references.

I recommend: If you want an agent dedicated to one company to provide your malpractice insurance quote, see DocLiability.com, or, if you want a broker who compares companies and policies, check out The Doctors Company.

Seek specifics regarding the term 'claim' with medical liability companies

Ask for clarification when comparing claims-made or occurrence coverage and incident reports or written demands for damages. Claims-made policies cover claims made during the active policy period, but occurrence coverage allows claims filed at any time as long as the incident occurred when the policy was in effect. Some insurance companies allow the physician to report an adverse outcome as a potential claim, while others require receipt of a written demand for damages (notice of lawsuit).

I recommend: Physician's News Digest provides a detailed explanation of claims-made and occurrence policies, and Medscape has answers and guidelines for incident report writing. You'll have to register at Medscape.

Know settlement clauses and fee responsibilities with your healthcare liability insurance coverage

Check to see if your policy has defense costs written as either 'inside' (costs are subtracted from liability limits) or 'outside' (liability limits remain in full) policy limits, and check to see if your settlement clause is a consent to settle clause and/or a 'hammer' clause. Consent to settle clause means the insurance company must have your permission to accept a settlement claim, while a 'hammer' clause still requires your permission to settle, but you are responsible for any costs above the proposed settlement should you opt out of settling.

I recommend: Stanzler Funderburk & Castellon provides information, such as reporting that defense costs policy limits often cause a conflict of interest with the insurance company and the insured. Modern Medicine offers deeper insight and explanation of consent to settle clauses, while PRMS examines the affects of the "hammer" clause.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Exclusions in your medical malpractice insurance company policy state what the policy does not cover, so read the fine print closely.

Many nurses assume that they are insured against medical malpractice suits by their employer's medical professional liability insurance. However, what most nurses don't know is that the medical malpractice insurance their employer provides may only cover them during their regular shifts within the workplace.

You may be leaving yourself wide open for a malpractice lawsuit if you:

1. Stop to help someone who's had an accident on your route home even despite Good Samaritan laws that are on the books in most states.
2. Give medical advice to a family member or friend.
3. Assist with a medical procedure after your shift has ended or outside your expertise.

Purchasing medical liability insurance can:

1. Offer you extra protection in case a settlement exceeds your employer's medical malpractice insurance coverage limits.
2. Provide you with your own lawyer so that your interests are protected in a lawsuit involving you and your employer.
3. Give you the peace of mind to help others when you need to without having to worry about a potential lawsuit.

Nurses should consider their own professional liability insurance regardless of their nursing specialization or the setting in which they work.

Action Steps
The best contacts and resources to help you get it done

Examine your employer's healthcare liability insurance

Before shopping for your own nursing malpractice insurance, you'll want to know what you're already covered for. This will determine how much coverage you need and in what areas you are particularly vulnerable.

I recommend: Sign up for a risk management newsletter from MedMal4Nurses that can highlight areas in which you may be vulnerable. Communicate with other nurses at the AllNurses forums to find others' experiences with liability insurance for nurses. Firsthand knowledge from other nurses can help you determine what risks you may face.

Obtain quotes from medical malpractice insurance companies

Companies offering malpractice insurance for nurses will give you a quote on their policies. Many have online resources like instant quotes and forms you can fill out to receive more information on available policies. Take advantage of these resources, and review the medical liability insurance policies for which you may qualify.

I recommend: Get a free professional liability insurance quote from Presidio and Sinclair Insurance.

Talk to an agent about nursing malpractice insurance

While getting an online quote can be a helpful start, you must talk to an insurance professional about your particular needs. This is a great way to gauge customer service too. If you are not familiar with the company, make sure that it's been in business for a while and that it has provided reputable services and policies to nurses.

I recommend: Nurses Service Organization (NSO) has been offering liability insurance to nurses for more than 30 years and is a favorite of many nurses. NSO partners with a number of nursing associations and is recognized as a leader in the field of malpractice insurance for nurses.

Weigh the medical malpractice policy options against your risk

Some policies may cover more than you need or may cost too much for your overall budget. Factor in your employer's insurance, your nursing specialty, your budget and the likelihood of performing various procedures to better assess the medical liability insurance you need before selecting the one that is right for you. Special circumstances and certain specialties may require different policies or coverage than a nurse working in, say, a general practitioner's office.

I recommend: ProLiability offers specific medical liability insurance for nurses in various specializations such as oncology and neonatal units. Parish nurses can find a list of medical liability companies that offer special policies for their situation at the National Health Ministries Web site.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Talk to other nurses who you work with about which medical liability insurance they have. Post questions about insurance on nursing message boards or forums for more firsthand information on specific companies.
• •  Ask the nursing associations that you belong to which medical malpractice insurance company they recommend. Some nursing associations partner with particular insurance companies, most often NSO.

Medical liability insurance is professional and personal financial protection for any health care professional at risk of being pursued with personal damage claims due to perceived patient negligence or error. Medical liability insurance covers settlements and financial awards to the plaintiff, which ensures your ability to maintain a practice and keep personal assets protected.

The risk of human fatality within your health care profession and location of your practice dictates the amount of medical liability insurance you carry. The higher the risk of your specialty and location, the more coverage you want to purchase. Each individual state has guidelines for health liability insurance coverage.

1. Medical malpractice insurance provides healthcare provider protection

2. Know guidelines for medical malpractice insurance requirements

3. Be familiar with the process of using medical malpractice insurance

Action Steps
The best contacts and resources to help you get it done

Protect yourself with medical malpractice insurance

When someone perceives substandard patient care, they file a medical malpractice claim for damages, so protect your practice and personal assets with adequate medical malpractice insurance coverage. For this coverage, you pay premiums on a regular basis, so, if you find yourself in a medical malpractice suit, your medical malpractice insurance company takes over the largest financial burden in settlements and awards.

I recommend: For answers to most requently asked medical malpractice questions, see Tegner-Miller Online. For more information and explanation regarding medical malpractice insurance see the Robert Wood Johnson Foundation.

Follow local guidelines for medical malpractice insurance coverage

Most states, hospitals and physician groups require medical liability insurance, and the amount varies according to specialty and location. However, some states have physicians practicing without health care liability insurance. Physicians practicing in medical groups or are employees of a hospital are often covered by medical liability companies that offer group policies, so check with your place of employment for coverage information. If you need medical malpractice insurance, contact local agents or agents licensed in your state for quotes and updated requirement information.

I recommend: Sterling Risk Advisors and Aon Physician Alliance are medical malpractice insurance brokers who operate in many U.S. states and understand the requirements for proper coverage for medical professionals.

Know whom to contact regarding medical malpractice insurance c

If you receive a summons and complaint of medical malpractice, know your healthcare liability insurance process. Your attorney and insurance company are your advocates and advisers in this situation, and they are the first people to contact upon receipt of a summons and complaint.

I recommend: According to UNUM Provident Insurance, insurance companies have a "duty of disclosure", so ask about policies and procedures regarding a summons and complaint of medical malpractice before you agree to their coverage. Have an attorney to protect you and work with the insurance carrier through this process; use Injury Lawyer Finder for a referral.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Shop around to find the most advantageous policy. Medical professional liability insurance is worth the expense.