21 Nov Physicians Are Not the Only Healthcare Professionals That Need Malpractice Insurance

While most people are aware of the importance of medical malpractice insurance for physicians and specialists, they may not realize that allied healthcare workers (nurses, therapists, etc) need similar protection.

Though this insurance may be called by other names, including professional liability insurance or errors and omissions (E&O) insurance, the coverage is essentially the same.  Medical malpractice insurance protects workers from lawsuits that may arise if a patient claims they were harmed due to a mistake or omission in care.

Allied healthcare professionals, including nurses, radiologic technologists, lab technicians, and even pharmacists, can face legal action if a patient feels they were harmed during treatment. While the risk level varies depending on their specific role and the procedures they perform, these professionals can still be held accountable for injuries or perceived negligence.

The cost of medical malpractice insurance for allied health professionals can be covered in several ways, depending on their employment arrangement.  Many hospitals, clinics and healthcare practices provide malpractice insurance as a benefit to their employees.  This is often the case for full-time employees where the employer pays the premium and includes it as part of the employment package.

For workers employed by a staffing agency, malpractice insurance is typically provided by the agency itself. Staffing agencies usually carry a general liability and professional liability policy that extends to cover their employees while they’re working on assignment. This coverage is meant to protect both the agency and the healthcare worker from potential lawsuits arising from claims of negligence, errors, or omissions.

However, the level of coverage provided can vary widely from one agency to another. Some policies might only cover specific aspects of the worker’s duties, while others could have high deductibles or limits on the scope of coverage. For this reason, many allied healthcare workers consider getting their own individual malpractice insurance policy as a supplement. This personal policy can provide additional coverage beyond what the staffing agency offers, ensuring the worker is protected in situations that may not be fully covered under the agency’s policy.

Medical malpractice insurance for staffing agencies covers everything from physical injury to claims of mental anguish.

Medical malpractice insurance is designed to protect healthcare professionals from the financial and legal consequences of claims made by patients alleging harm due to mistakes, omissions, or negligence in their care. Here’s what a typical medical malpractice policy covers:

1. Legal Defense Costs: It covers the cost of hiring attorneys to defend against claims or lawsuits, even if the claim is groundless. This includes fees for lawyers, expert witnesses, and other defense-related expenses.
2. Settlements and Judgments: If a case is settled out of court or results in a judgment against the healthcare professional, malpractice insurance can cover these costs, up to the policy’s limits. Settlements and judgments can be significant, making this a key part of the coverage.
3. Medical Damages: If a patient is awarded damages for medical expenses resulting from an alleged injury caused by the healthcare professional, malpractice insurance may cover these costs.
4. Pain and Suffering: Some policies also cover payments for non-economic damages, like pain and suffering or mental anguish experienced by the patient.
5. Punitive Damages: In some cases, punitive damages may be awarded, though not all malpractice insurance policies cover these. Punitive damages are awarded to punish especially negligent or reckless behavior.
6. Licensing Board Actions: Many policies include coverage for legal fees and other expenses related to defending against claims brought by a professional licensing board, which can be essential if the claim leads to disciplinary action or investigation.
7. Personal Injury Coverage: Malpractice insurance can also cover personal injury claims, such as allegations of slander, libel, invasion of privacy, or other personal injury offenses that could arise from the healthcare provider’s interactions with patients.
8. Medical Incident Coverage: This broad coverage protects the provider for claims arising from incidents that occur within the scope of medical services, such as misdiagnosis, treatment errors, medication errors, and procedural mistakes.

Policies differ widely, so some may offer additional options like coverage for incidents occurring outside the primary workplace or retroactive coverage for past events.

Barrow Group specializes in malpractice insurance for medical staffing agencies.  Please contact Jaqueline Rosales at 800-874-4798 if you need assistance.