If you’re a physician practicing in New York, you’ve probably heard of Medical Liability Mutual Insurance Company, or MLMIC. MLMIC is one of the largest malpractice insurance companies in the country, and one of the most prominent NY carriers that can provide protection against a malpractice lawsuit.
What Kind of Policies Does MLMIC Offer?
MLMIC offers two types of Malpractice insurance policies: Occurrence and Claims-Made. It is critical for healthcare practitioners to know the difference in order to make an informed decision.
Occurrence policies provide coverage for claims that may arise from incidents which may have occurred while you had a policy in force, regardless of when a claim is reported, even if the policy is no longer in force. Thus, Occurrence coverage provides long-term continuing protection for the physician. For example, if a malpractice claim is filed say five years after the incident occurred, and the physician or dentist was protected under an Occurrence policy five years ago, the carrier that covered them at the time would provide coverage for any covered claims. Occurrence policies provide the value of long-term coverage over the years.
A Claims-made policy provides protection for claims that ‘arise and are reported’ while you have a policy in force. You are covered up to the policy limits in effect at the time the claim is reported. To be protected for any claims which are reported after the malpractice policy has been canceled, you must purchase ‘tail coverage’, (Extended Reporting Period endorsement), or obtain similar protection from a subsequent malpractice insurance carrier. A claims-made policy must continue in force to provide protection, or be replaced by tail coverage. When you elect to change claims-made carriers, ‘Prior Acts Coverage’ or ‘Nose’ coverage must be obtained to cover your exposure from your first day of claims made coverage.
Which Healthcare Professionals Can MLMIC Cover?
Physicians
Physicians in private practice must obtain malpractice insurance to protect themselves from the defense and liability costs of a malpractice lawsuit. They have the option of either Occurrence or Claims-Made coverage, with the additional option of supplemental insurances such as Professional Entity coverage. With the skyrocketing costs of defending and settling a malpractice lawsuit, physicians have to be careful about their choice of a malpractice insurance carrier.
Dentists
Like physicians, dentists have the option of purchasing either Occurrence or Claims-Made policies. MLMIC also offers additional Tail Coverage or Nose Coverage to pair with their Claims-Made Coverage. Tail Coverage provides coverage for malpractice claims reported after the initial coverage has expired. Nose Coverage, in contrast, covers claims relating to incidents during the time the dentist was covered under a prior insurer.
Hospitals
MLMIC has been providing medical professional liability coverage for hospitals and other healthcare facilities since 1975. MLMIC offers comprehensive risk management programs designed to minimize the liability risks of their insured hospitals and healthcare facilities. These programs help reduce the frequency and severity of claims, thereby resulting in lower malpractice insurance costs.
What if You Don’t Have Time to Research Insurance Policies?
You’re a busy healthcare professional, and managing your malpractice insurance should be the least of your worries. If you wish to explore more options for malpractice insurance in New York for yourself, your group practice or your health care facility, please contact PriMed Consulting. 800.528.3758. www.primedconsulting.com
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