Can Employees Get Malpractice Coverage from Their Employer?
Some Massachusetts professionals who work as employees may have access to at least some malpractice coverage from their employer. Before relying on this coverage, however, professionals should be careful to make sure of the following:
- The policy protects employees as well as the employer
- The policy’s limits meet or exceed the professional’s needs
- The policy covers all of their professional activities (including any pro bono work they do)
If an employer’s policy doesn’t provide a sufficient amount of coverage, or doesn’t cover all of a professional's work and volunteer activities, the professional usually should purchase their own malpractice policy.
Are There Different Types of Malpractice Liability Insurance?
Malpractice liability policies can generally be separated into three categories: occurrence policies, claims-made policies, and modified occurrence policies.
Occurrence Policies generally provide coverage for incidents that occur during the policy’s effective period, regardless of when a claim is filed. Even if a claim is made after an occurrence policy has expired, the claim will usually be honored by this type of policy.
Claims-Made Policies usually only cover incidents that both occur and are reported during a policy’s effective period. If a policy must be canceled, “tail coverage” can usually be purchased that extends the time period that claims may be made during. Once any tail coverage that’s purchased expires, however, claims typically won’t be honored.
Modified Occurrence Policies combine aspects of occurrence and claims-made policies to provide robust protection. These policies often come with tail coverage automatically included, and unlimited tail coverage can often be purchased once the included amount expires.
How Much Does Malpractice Coverage Cost?
How much a malpractice policy costs depends on many factors, two of which are where a professional’s practice is located and what type of work they do. A neurosurgeon in Boston, MA will likely have to pay much more for coverage than an esthetician in Worcester, MA.
Often, malpractice liability insurance is one of the more expensive insurance policies that professionals need due to all of the coverage. Even an esthetician in Worcester, MA may end up having to pay a decent amount for coverage.
Despite their potential cost, malpractice policies are still often wise investments. For, the legal fees associated with a single lawsuit filed by an upset client could potentially bankrupt a professional. Should the professional be found liable, a settlement could make the suit all but impossible to recover from without insurance.
How Can Professionals Get Malpractice Insurance?
Because malpractice policies can be a significant investment, it’s especially important to shop around for the best value. Professionals who’d like to see what policies are available to them should contact an independent insurance agent who serves Massachusetts. An independent agent can quickly compare policies from different insurers and help a professional find the one that provides the best coverage at an affordable rate.
