Details Of Therapist Malpractice Insurance

People considering a career as a therapist sometimes do not consider all the ramifications of their chosen career. Therapist malpractice insurance is one thing that potential participants in this career field sometimes do not consider fully. They may dimly be aware that they will require some type of insurance, but be unprepared for the different types of insurance available for purchase.

Malpractice insurance is a necessity for therapists, just as it is for any medical practitioner. Sometimes one may not think of a therapist as needing this type of insurance but the sad fact of our present society is that people like to sue professionals. These lawsuits are occasionally completely justified, but the need for protection against frivolous lawsuits seems to be increasingly great.

Malpractice in the medical field is defined as negligence in treating a condition, whether it is physical or mental. This negligence must be proved, of course, in a court of law. Delay in referring a patient would be one type of malpractice, delay in treatment, misdiagnosis, or treatment that is not appropriate, are other precursors of malpractice claims.

Insurance costs often vary greatly between companies. However, the old adage you get what you pay for is often true with insurance. Finding out the insurance purchased has so many loopholes as to be completely worthless is not worth saving a few dollars. On the other hand, exorbitant premiums are a waste of money if the same coverage can be obtained from a reputable company for less. Some factors, which may influence therapist malpractice insurance, are the same as with other insurance such as areas of the country and prior insurance records. Credit history is becoming an important factor in determining just how much one will pay for insurance. Government employees are not required to carry malpractice insurance as the government assumes the liability incurred by the practicing therapist.

Malpractice or medical liability insurance is a bit different than say automobile liability insurance or liability insurance purchased on property or a home. There are three basic types of malpractice insurance: Claims Made, Prior Acts or Tail Coverage, and Occurrence Coverage. Claims Made is the easiest concept to grasp, it covers what the name says, claims made during the policy period, it does not cover the insured after the policy has lapsed for any reason, this means therapists could conceivably be sued months or years later and have no liability insurance coverage. To prevent this unfortunate scenario, Prior Acts coverage can be purchased to cover any claims brought against the therapist that occurred prior to the purchase of this coverage. If this insurance if purchased from the same company as the lapsed or lapsing Claims Made policy was purchased from, it is called Tail Coverage. Occurrence Coverage is the best, all encompassing type of malpractice insurance; it is also, unfortunately, the most expensive. It covers all claims against the therapist, prior or current.

It pays to shop around for all types of insurance. Malpractice insurance is no exception to this rule. Many factors can influence prices, which must be taken into consideration before undertaking the purchase of this essential protection against disaster.




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