Malpractice lawsuits can be expensive; in 2023, 57 malpractice lawsuits resulted in $10 million or more verdicts, and more than half were $25 million or more.
Locum tenens physicians should have a firm grasp on malpractice coverage, as policies can differ from agency to agency and state to state. Here is everything to know about malpractice for locum tenens physicians.
What is medical malpractice insurance?
Medical malpractice insurance keeps doctors financially protected if one of their patients decides to sue because they were injured during treatment, had adverse side effects, or the treatment did not work as they expected. In simpler terms, malpractice insurance covers doctors if a patient sues them.
In general, locum tenens companies typically offer malpractice coverage of $1-3 million per claim, but this ranges across states and agencies.
What are the different types of malpractice insurance?
There are two main types of malpractice insurance: occurrence and claims-made. Occurrence malpractice is typically more expensive, but it covers any claim made during the covered year, regardless of when that claim comes in.
Claims-made malpractice insurance covers any claim made within the period that the policy is in effect and when the claim is filed. This is much cheaper coverage, but it does come with the risk of a patient deciding to file a claim years later. Many physicians purchase tail insurance to cover this risk, covering those later claims.
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Am I guaranteed medical malpractice coverage?
Most locum tenens agencies provide medical malpractice coverage for their physicians. That is why the hiring and credentialing process may take longer. They will look at any past claims a physician has had or things like lapses in work that might increase the malpractice risk.
For higher-risk physicians or specialties, a locum tenens agency might require additional training or stipulations on what treatments the doctor can and cannot provide. This keeps the locum tenens agency legally protected and patients safe.
How does malpractice differ across locations for locum tenens physicians?
Malpractice for locum tenens physicians depends on the state in which you practice. Many states have limits on how much patients can sue for malpractice. California, for example, has a limit of $350,000 for injuries without death and $500,000 for wrongful death. However, many states don’t have a cap at all.
In addition, patient compensation funds are an alternative to litigation. States like Louisiana create a fund from which patients can claim damages without having to identify fault. Physicians and locum tenens agencies pay into this fund, which keeps participating doctors protected from the costs of litigation while providing patients compensation for harm. Eight states have these funds: Indiana, Kansas, Louisiana, Nebraska, New Mexico, Pennsylvania, South Carolina, and Wisconsin.
Wondering about licensing for locum physicians? Read our locum tenens licensing guide
What is and isn’t covered by malpractice insurance?
Most malpractice insurance policies cover everything except intentional or criminal acts. That means you won’t get coverage if you intentionally hurt a patient or break the law during practice.
Some agencies also cover expenses outside of civil litigation, including disciplinary proceedings or board investigations. Typically, this coverage is separate from malpractice and ranges from $10,000 to $25,000 in protections.
What happens if I get a malpractice claim against me while I’m working locum tenens?
Typically, you, as the physician, will receive the claim first. Then, you pass that claim to the locum tenens agency. The agency will contact you to get as many details as possible about the claimed incident; then, they will employ lawyers to defend or settle the claim. It is important to note that the agency might recommend settling the claim and offering monetary compensation to the patient, even if you feel you did not do anything wrong. With the potential size of verdicts, sometimes settling things outside of a courtroom makes more sense.
Is a lawyer covered?
Yes, malpractice for locum tenens physicians typically includes the cost of legal fees. Of course, you will have additional legal expenses if you want to use a lawyer outside of the locum tenens agency or if your claim is over the insurance limit. However, these cases are rare, and doctors generally have no out-of-pocket expenses in the event of a malpractice claim.
How does medical malpractice insurance differ across locum tenens agencies?
While most agencies cover based on a per-incident basis, some smaller agencies may choose a riskier but cheaper approach of pooling coverage across physicians. If coverage runs out, you might have out-of-pocket expenses, even if your patient filed for something small.
In addition, locum tenens agencies vary in how they handle the claims. Some have whole teams that investigate claims, in-house lawyers for defense, and more. Others outsource this insurance and the claims. Some agencies want to fight until the last possible minute, while others default to settling as quickly as possible.
It may be wise to speak to your recruiter for more information about that agency’s malpractice coverage prior to taking an assignment.
What should I know about my malpractice insurance policy?
The most important thing to understand is who is responsible for the insurance. Most locum tenens physicians are covered by their agency.
The next thing to understand is the time aspect of malpractice claims. Generally, patients need to make a claim within one to four years, but lawyers can often circumvent these limits. So, it is important to understand what happens if a claim comes outside of the standard timeframe.
The third aspect is fully understanding any limitations on that coverage. Are you covered for each claim? Are all your typical treatments covered? Is there a yearly limit on claims? Ask all these questions and more to make sure you have a complete understanding of your policy.
