Thanks for the explanation, but then...what's the point? What exactly are you getting?
In reality, not an awful lot.
The main advantage is that there are no "policy limits", with respect to indemnification by your employer.
It is technically possible that if you have such an agreement with your 20 bed hospital, they could go bankrupt and possibly leave you liable.
It is far less likely with a large employer like Kaiser. (Even though their arbitration provisions are a different animal.)
It might be theoretically possible with respect to the State of New York. (Who knows about Illinois.)
It is absolutely impossible with respect to the Untied States government.
To clarify matters, people speak of "sovereign immunity", but the important point is that it is
not sovereign immunity. The federal government and the states all have sovereign immunity. That means they cannot be sued for damages without their consent. (Note, counties and cities do not have sovereign immunity. That can be an important point.) Now, these governments realized it was unfair to leave an individual citizen to bear the burden if they were the victim of negligence. So, all the states and the federal government passed laws
waiving their sovereign immunity in certain cases. Very generally speaking, if you could sue a private individual or a corporation for negligence, you could sue the state or the federal government. With the federal government, it is called the
Federal Tort Claims Act. There are some situations where the federal government
did not waive immunity. As an example, if the DEA wrongly revokes your DEA number because they think you are illicitly prescribing, you are out of luck when it comes to suing for damages. The most important way that it impacts physicians is that the plaintiff must sue the federal government, and not the individual physician. But that doesn't change a whole lot practically. You would still have to give depositions, etc.
But - and this is a huge but - the federal government will (or can) still report you to the NPDB. Does it help you with respect to licensing/renewal? Not really, those list if there have been any malpractice
claims against you, not whether you have been sued. A very important distinction. Not that - absent ridiculous circumstances - anyone really cares about that anyway.