Non-Standard Medical Malpractice Insurance for Professionals with Claims or Disciplinary History

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There are any number of reasons that a medical professional can find him or herself faced with a problem in obtaining professional liability ("malpractice") insurance coverage.

	MALPRACTICE CLAIMS/LAWSUITS (based upon severity, frequency - or both).
	DISCIPLINARY ACTIONS.
	LICENSE RESTRICTION, SUSPENSION or REVOCATION.
	FELONY CONVICTION.
	SUBSTANCE ABUSE.
	SEXUAL MISCONDUCT.
	NON-TRADITIONAL MEDICAL PRACTICES & PROCEDURES.
	FOREIGN MEDICAL DEGREE, WITHOUT COMPLETION OF A RESIDENCY IN THE U.S.

The fact is that in order to remain in practice, or return to practice once one's license has been restored, it is critical that a professional be able to obtain professional liability insurance coverage. Aside from the fact that it is foolhardy to practice these days without coverage, virtually all hospitals, managed-care providers, and county, state or federal government contracts require this type of insurance.

Few, if any, of the many association-sponsored insurance programs, or state mutual malpractice insurance companies are equipped to deal with the "impaired risk" or "hard-to-place" professional.

Fortunately, there are several reputable insurance carriers willing to evaluate carefully each individual applicant. In almost all cases, solid professional liability coverage can be obtained, though the terms and conditions of each policy will depend upon the unique situation presented.

"What about the cost?" Well, I would be lying to you if I said that this type of coverage is inexpensive. In some cases, I have seen policies written at very high premiums, while in other cases, the pricing has been really quite reasonable. I have also seen situations where one insurer's pricing is dramatically higher or lower than another's, which is why I believe strongly in the benefits of utilizing the services of an independent insurance broker, such as myself.

Remember, unlike malpractice insurance programs offered through associations & societies, non-standard coverage is individually underwritten. Underwriters carefully review each submission so that the policy is properly priced in relation to the applicant's own history. In addition, most non-standard policies will include deductibles, coverage limitations and restrictions - all of which are designed to not only keep the premium as reasonable as possible, but also to make the insured a "partner" in the coverage.

Is there any chance of returning to the standard market? Yes - absolutely! Assuming that the insured remains free of further claims or incidents, it can be expected that each year will bring more competitive terms, conditions . . . and rates. Some carriers, for instance, won't write the first year of impaired-risk coverage, but are willing to quote from the second year on.

Eventually, once a track-record is reestablished, most professionals can look forward to returning to the "standard" marketplace. A basic rule-of-thumb is between 2 to 4 years. Does this mean that you - the temporarily impaired risk professional - will no longer be my client? Yes, in some cases it probably does, while in other cases I can often move your coverage to one of our standard market carriers. Either way, it is my custom to review the situation with each of my clients on an annual basis, to determine when it's most advantageous to begin reapplying to the standard market.

Here are a few actual cases that I have handled:

	A clinical psychologist had had an affair with a former patient, which resulted not only in a malpractice lawsuit, but also in a disciplinary hearing. The lawsuit ended with the payment of a substantial settlement to the plaintiff, and the disciplinary proceedings resulted in a five-year license suspension. Upon successfully obtaining the reinstatement of his/her license, the professional found - not surprisingly - that no standard carrier would even accept an application. Upon being contacted, I was able to secure coverage with an A-rated, admitted insurance carrier, which allowed my client to return to private practice as well as to contract with the county. While the coverage was expensive, and contained certain restrictions, the premium has actually declined each year - and beginning with the next anniversary date we will begin looking for replacement coverage in the standard market.
	A podiatrist with a history of substance abuse was ultimately convicted of writing bogus prescriptions for narcotics, resulting in an 18-month stay in federal prison. After several years of probation, the doctor successfully reapplied for a license, which was granted with a number of significant conditions. I was able to obtain a quote for malpractice coverage with an A-rated, national insurance carrier. The rates were very high, to be sure, but allowed my client to return to practice.
	A physician whose high-profile practice involves a number of "alternative" modalities suddenly found his/her malpractice coverage cancelled. After efforts by his/her own staff to replace the coverage failed - and after ten days of no coverage whatsoever - I was able to secure new insurance coverage at a lower premium than before, and the new carrier agreed to bind coverage as of the date of cancellation, thus closing the ten-day gap.
	A dentist who had been found to be practicing without a license several years ago, had lost his/her malpractice insurance and had been practicing uninsured ever since. Wishing to join a managed care panel, he/she needed coverage. I succeeded in obtaining a policy with an "A+" rated carrier - and my client succeeded in becoming a member of the HMO's panel.

If you, or someone you know, is in need of assistance in obtaining professional liability coverage, I can assure you of my creativity, tenacity, professionalism . . . and most of all my discretion.

Click here or give me a call at 877-320-4061, 24 hours a day. This system will attempt to locate me. If I am available, it will automatically connect you. If I cannot take your call, you will be given the opportunity to leave a private voicemail message - and I will get back to you, promptly. You can, of course, send me an e-mail at insurance@insurance4docs.com .

I look forward to speaking with you,

Bruce R. Swicker