What types of claims does medical malpractice insurance cover?

Answer 1

Medical malpractice insurance is a type of liability insurance for physicians and similar kinds of health care professionals.

Like other forms of liability insurance, it assumes the financial risk of damages, according to its terms, that a third party may claim against a treating medical professional. Stated otherwise, it will pay on behalf of the insured those amounts which the insured is found legally responsible for.

Other aspects of medical malpractice insurance also track liability insurance as a general genre. These include:

1. The insurer requires that the insured report the claim to it within a reasonable time. This allows the insurer to investigate the claim. If the investigation concludes that the insured is likely responsible for legally cognizable damages, the insurer may be able to settle the claim without the need for a lawsuit and the expenses that attend one.

2. If the claim cannot be settled, generally the insurer provides a defense to the insured in a lawsuit. This means that the insurer will hire a lawyer to represent the insured, and pay all or most of the costs incurred in that representation. In return for that, the insured has to abide by the directives of the insurer and the attorney, attend depositions, answer interrogatories, and otherwise participate in the proceeding.

3. Usually, the insurer has the right to make the decision as to whether or not to settle the claim. Sometimes, though, the policy will have a "consent to settle" provision which essentially gives the insured a veto over a proposed settlement.

4. In order to recover, the person who claims to be injured has to prove that his/her injuries proximately resulted from the act or omission of the health care provider. This is an integral part of any negligence claim. While negligence, in general, equates with carelessness, there must also be proximate causation. This means that BUT FOR the negligence, the injuries or damages would not have occurred.