Medical Malpractice Insurance: What Patients Should Know

What Is Medical Malpractice Insurance?

Medical malpractice insurance is liability insurance coverage for medical professionals for acts of medical negligence. 

Medical professionals are highly trained providers who sometimes commit errors while treating a patient. When these errors rise to the level of negligence, you can potentially sue the negligent professional for significant damages, depending on the circumstances. Medical malpractice insurance provides coverage for these damages.

What Patients Should Know About Medical Malpractice Insurance

Medical malpractice insurance is in effect when you become an official patient of a healthcare provider. It allows you to make a claim for compensation if you are injured by medical negligence. However, you should understand that you must build a strong case of medical negligence first.

In Nevada, proving medical negligence requires proving:

• Duty
• Breach of duty
• Causation
• Damages

Duty means an obligation to maintain certain standards of care. In medical malpractice cases, duty is typically established through the doctor-patient relationship. If you are not a patient of a particular doctor, that doctor has no duty of medical care toward you.

Remember that medical malpractice insurance covers not only doctors but any licensed medical professional involved in the care and treatment of a patient, including:

• Doctors
• Nurses practitioners
• Chiropractors
• Dentists
• Registered, licensed, and vocational nurses
• Midwives and doulas
• Medical technicians

Hospitals, clinics, and birthing centers also have malpractice insurance. 

What Does Medical Malpractice Insurance Cover?

Medical malpractice insurance covers economic and non-economic damages resulting from medical malpractice. However, there is a cap on the amount of non-economic damages you may claim. 

As of January 2024, the cap on non-economic damages in medical malpractice claims is $430,000. Due to recent legislation, the cap will increase by $80,000 per year until 2028, after which it will increase at a rate of 2.1% each year. However, there is no cap on economic damages. 

Common economic damages in medical malpractice suits include:

• Compensation for medical and hospital bills
• Lost wage replacement and loss of future income
• Compensation for medical device and equipment purchases
• Medical travel expense compensation
• Death-related expenses, such as funeral and burial costs

Non-economic damages typically consist of:

• Pain
• Suffering
• Inconvenience
• Disfigurement
• Any other non-pecuniary loss

Determining damages requires an experienced medical negligence attorney to fight for every dollar you deserve. Medical malpractice insurance companies work to limit their insurance payouts to preserve their profits, but an experienced Las Vegas personal injury attorney can hold them accountable for what they owe. 

Always remember that you have a limited amount of time to seek compensation for medical malpractice injuries. Nevada law provides three years to take legal action, or two years after the date you became aware of the injury. 

What Factors Affect Medical Malpractice Insurance?

Not all professionals pay the same premiums for medical malpractice insurance. In fact, two identical doctors may pay different rates depending on certain factors, which play heavily into the amount of coverage and their associated premiums. 

The Amount of Coverage

The more coverage a healthcare professional purchases, the more money they will pay for coverage. Additionally, a higher or lower deductible will affect how much one pays. 

Location

The location of a medical professional’s workplace can play a significant role in the setting of premiums. A doctor working in a large hospital in a big city will likely have different premiums than the same doctor in a small, rural private practice.  

Specialization

The particular specialization a doctor or other professional chooses will usually have a big impact on their premiums. Higher-risk specialties and specialties with high incidences of claims and medical malpractice lawsuits typically require higher premiums from medical professionals. 

History of Claims

Before issuing a medical malpractice insurance policy, underwriters will review the history of the professional seeking coverage. They are looking for prior claims and will set the professional’s premiums based on the number and nature of claims filed against them in the past. 

Generally speaking, underwriters will look back no more than 10 years for prior claims. If they find none, most will give the medical professional a discount on their premiums of up to 20%.

Competition

Market forces can have a major impact on malpractice insurance. The more medical malpractice insurance companies are willing to underwrite medical professionals, the lower the premiums providers pay. 

Keep in mind that certain specialties are historically more expensive to underwrite. Thus, fewer companies choose to insure these specialties. This results in naturally higher prices for certain specialties. However, when numerous companies cover an area of medicine, the price for coverage is typically lower. 

Who Needs Medical Malpractice Insurance?

Nevada law is rare in that it does not require medical professionals to carry medical malpractice insurance. It is entirely possible to be treated by a doctor or nurse who does not have medical malpractice insurance — but it is highly unlikely. The risk is simply too high.

Also, hospitals and care groups require their affiliated doctors and professionals to carry a specific minimum amount of medical malpractice insurance. In many cases, this minimum coverage consists of:

• $1,000,000 of coverage per episode of medical malpractice
• $3,000,000 one-year aggregate policy

So, although no law mandates medical professionals to purchase and carry medical malpractice insurance, the number of those without it is likely very low. 

Knowledge Is Power

You deserve to feel empowered when receiving treatment. Understanding medical malpractice insurance helps you take action when you are harmed by negligent medical professionals. If you or someone you love has experienced injury through substandard medical care, an experienced medical malpractice attorney in Las Vegas can help.

Sources:

AB404.

NRS 41A.015.NRS 41A.097.