A Guide to Locum Tenens Malpractice Insurance
For physicians and clinicians considering locum tenens jobs, protecting your professional reputation and finances is a top priority. While malpractice insurance is often provided by your staffing agency, understanding how it works is essential for your career success.
This guide will walk you through the key aspects of locum tenens malpractice insurance to ensure you're well-protected.
Locum Tenens Malpractice Insurance: The Basics
A locum tenens malpractice policy is designed to protect physicians from patient claims arising from alleged negligent medical care.
All policies include limits of liability, which is the maximum amount an insurer will pay for damages. These limits are usually set on a “per -claim” (or “per -occurrence”) and an annual aggregate basis. A “per claim” limit is the maximum amount the insurer will pay for each individual claim, even if multiple claims arise from the same incident. For instance, a policy with a $1 million per claim/$3 million aggregate limit means the insurer will pay up to $1 million per claim, with an annual cap of $3 million. A “per occurrence” limit is the maximum amount the insurer will pay for all claims resulting from a single incident. For instance, a policy with a $1 million per occurrence/$3 million aggregate limit means the insurer will pay up to $1 million per occurrence regardless of how many claims arise from it.
Two Main Types of Medical Malpractice Policies
Medical malpractice insurance generally comes in two primary forms, each with its own structure and considerations.
Claims-Made Policies
A claims-made policy provides coverage for incidents that happen after the policy's retroactive date and are reported while the policy is still active.
If a claims-made policy is non-renewed or cancelled, an extended reporting period endorsement, often referred to as a “tail policy,” provides an extended period of coverage after a policy ends. A tail provides an extended period of coverage after a policy ends. This endorsement ensures the policy will cover claims filed after non-renewal or cancellation, as long as the incident occurred during the active policy period.
Many locum tenens staffing companies carry claims-made policies that are renewed annually. If their coverage remains continuous, they do not need to purchase tail coverage. Their policy applies to all current and past locum tenens providers and extends back to the company’s retroactive date, which is (the policy’sies’ origination date). This blanket policy structure is popular as it eliminates the need for individual provider policies or separate tail policies, since coverage is continuous.
Occurrence Policies
An occurrence policy covers incidents that happen while the policy is active, regardless of when the claim is filed. Because of this, a tail policy is not needed after non-renewal or cancellation. These types of policies are commonly used by individual healthcare providers.
Find Your Next Locum Tenens Opportunity
Navigating medical malpractice insurance is a critical step in pursuing physician jobs in the locum tenens field. By understanding the different policy types and how they work, you can make informed decisions that protect your career and financial well-being.
Our team is ready to assist you with any questions about the medical malpractice coverage provided with your locum tenens assignments.
