WHAT EVERY PHYSICIAN NEEDS TO KNOW:

MEDICAL MALPRACTICE 101

PART 1

MAKING YOUR CHOICE

Purchasing malpractice insurance is an intensive, time consuming process. But remember, the carrier you choose will protect one of your greatest investments — your career in medicine.

1

MAKING YOUR CHOICE

Learn about the product you are buying and the quality of the provider. Ask your colleagues:

• What kind of reputation does the carrier have?

• Are policyholders treated fairly?

• If they had a claim, what was their experience like?

2

CHOOSING A CARRIER

• It’s not just about choosing types of coverage, but choosing a carrier who will protect you in the event of a claim.

• Consider these factors: financial stability, defense philosophy, service philosophy, experience, and risk management services.

3

FINANCIAL STABILITY4

• Does the carrier have sufficient financial resources to pay current and future claims?

• Do they have adequate financial reserves, or could they be one excessive jury verdict away from bankruptcy?

• Have you reviewed the company’s annual report and other financial statements? If you don’t know how to evaluate the financial data, ask your accountant, financial advisor, or attorney.

DEFENSE PHILOSOPHY

• Does the company defend their policyholders or simply settle cases?

• What percentage of claims do they close with no indemnity payment?

• Do they require your consent to settle or can they just settle the case?

• Will they stand by your side at trial?

5

DEFENSE PHILOSOPHY6

• Will they defend you at disciplinary proceedings?

• Does the carrier handle claims internally or are claims outsourced?

• What is the carrier’s record in the courtroom?

• How experienced are their attorneys and claims managers? Do they have expertise with your practice area?

SERVICE PHILOSOPHY7

• Will the company treat you like a person, or do they see you as a policy number?

• Will they assign a specific account manager and claims manager to your account, or will you be speaking with a new person every time you call?

• Is the coverage flexible? Does it meet your needs and practice dynamics?

EXPERIENCE8• Malpractice laws differ from state to state. How

experienced is the carrier in your state?

• How many policyholders does the company have in your state?

• Does the carrier understand the venues and nuances of your state’s legal system?

RISK MANAGEMENT SERVICES9

• Are claim prevention and risk management programs part of their service?

• Do they provide you with information on how to prevent lawsuits, including publications and educational programs?

• Will they customize programs to meet your needs?

• Do they offer premium discounts for participating in such programs?

PROTECTION FOR A NEW ERA OF

MEDICINEABOUT TMLT:With more than 17,500 physicians in its care, Texas Medical Liability Trust (TMLT) provides malpractice insurance and related products to physicians. Our purpose is to make a positive impact on the quality of health care for patients by educating, protecting, and defending physicians. www.tmlt.org

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