YOUR MALPRACTICE INSURANCE CONTRACT

Professional liability insurance contracts are not all the same. Individual contracts must be studied for possible gaps in coverage. The limitations and exclusions they contain are not a criticism of the insurance industry, for they determine whether an insurance company can stay in business. The physician should understand the insuring clause, monetary limits, exclusions, practice limitations, territorial limitations, settlement restrictions, the cancellation clause, and the extent of his duty to cooperate with the insurer. The basic reason for the need of cooperation is that the insurance carrier assumes a substantial monetary risk and, in return for it, is entitled not only to a premium but also to full and honest assistance from the insured physician. The gravest error is to purchase on the basis of price alone. Physicians should examine their current professional liability policies with these facts in mind.