Medical Director Liability Insurance

Whether it is a result of the stagnant economy, lower reimbursements, or just the explosion of new physician assistant (PA) or nurse practitioner (NP) run clinics, Medical Director liability insurance is one of the fastest growing segments of our liability insurance practice. This article will help you understand why Medical Director liability insurance coverage is in such hot demand and provide you some helpful advice on how you can keep costs down and find the best policy available for your situation and medical practice.

What Type of Facilities Require Medical Directors?

You should check with your state Department of Health and/or licensing board to make sure, but most states require that PA or NP-owned clinics have a Medical Director or supervising physician on staff. A physician that is searching for Medical Director opportunities should be sure to contact the various walk-in urgent-care clinics, medi-spas and chiropractor/pain management offices in their area, as these are current areas of growth.

It is important to note that Medical Director liability policies, as a whole, do not provide coverage for professional services rendered by the physician. Instead, Medical Director liability coverage is designed to cover the physician for errors and omissions made in the course of his/her supervisory duties. Many physicians mistakenly believe that their current medical malpractice insurance will cover their outside Medical Director duties. In most cases, the physician’s med mal insurance will specifically exclude Medical Director coverage and physicians must purchase a stand-alone Medical Director liability insurance policy.

I Found a Great Medical Director Opportunity Now What?

The first thing an insurance agent or broker in our office will ask you is if you will be providing any professional services in addition to acting as a supervisory physician. Many times a physician is hired to be a Medical Director and is also asked to treat patients on a limited basis. For instance, many of our clients that are Medical Directors at a medi-spa will be asked to give Botox or Juvaderm shots. In most cases, this risk would not be covered under a standard Medical Director policy. Realizing that the landscape is constantly changing, several of the insurance companies have begun to offer policies that provide limited patient contact.

OK, What is This Going To Cost Me?

Demand for Medical Director coverage is so high that rates seem to drift higher with each passing quarter. About two years ago, the typical stand-alone Medical Director policy cost about $1200 -$1500 per year. Now those same policies cost roughly $1800-$3500 for $1million in coverage. The costs depend on the State and County that the practice is located in and the estimated revenue and patient load of the practice.

As the demand for Medical Director liability insurance coverage increases, so does the number of insurance companies offering coverage. The application is a simple two-page application. Our office then sends each application that we receive to at least three insurance companies for competitive quotes in order to find the best policy and price available. We walk our clients through the application process and identify the various liability risks that they may not be aware of in order to make sure that we meet their unique needs and to ensure that they are covered as needed.

Please call us or email us today if you would like to learn more about Medical Director liability insurance or receive a free quote. Our agents know the market well and have found reasonable coverage for physicians in every state.

Disclaimer: This article is written from an insurance perspective and is meant to be used for informational purposes only. It is not the intent of this article to provide legal advice, or advice for any specific fact, situation or circumstance. Contact legal counsel for specific advice.

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