Locums Malpractice Question

[spike7585]

Had a question for those that have done locums with a large company that provided their malpractice.

Prior to starting my locums shifts (not a continuous week, but instead a 3-4 shifts a month for unknown amount of time), I asked for them to provide my proof of malpractice coverage, and stated that I was hoping it would be occurrence based. The certificate of liability has the locums company as the name for the insured, but my name is near the bottom of the certificate as a provider. However, it appears to be claims based. When I reached out to the locums company, they stated that their form of claims based doesn't need a tail/nose, and they had clarified that prior to obtaining the coverage. They're a large locums staffing company, so while I would be surprised that they didn't do their due diligence, I can't put it past them either.

They ended up giving me a contact from the insurance company, and I reached out to them. They stated that they do almost exclusive malpractice policies for locums, and this is how it is typically done for them, and he confirmed that in this situation I would not need a tail/nose policy. From how he describes it, he states that the LOCUMS COMPANY is the one insured, and as long as they remain insured, I would not need to worry about a tail. So theoretically, I work next week ....I stop working for locums in a month completely......then one year from now a claim is made about a case from next week......I am theoretically covered as long as my Locums company continues to have coverage --- (ACCORDING TO THE INSURANCE AGENT). Apparently of all his locums policies, none of them are of the occurrence based. I asked him if he could provide something written that verifies/confirms what he is saying, and he stated he would.

While he seemed confident during our conversation....well he's an insurance agent so I am going to take his reassurance with a grain of salt. I wanted to see if people who have done locums with large staffing companies have obtained insurance that was occurrence based, or if they typically see claims based as well.

Thanks!

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[chocomorsel]

It’s covered. Been doing locums for three years off and on and the recruiters tell me in writing that it’s occurrence based. I doubt they would be able to do this without occurrence based malpractice. People wouldn’t sign up.

 

[spike7585]

It’s covered. Been doing locums for three years off and on and the recruiters tell me in writing that it’s occurrence based. I doubt they would be able to do this without occurrence based malpractice. People wouldn’t sign up.

Thanks for the reply.

Have you seen the coverage certificate with your name on it to where it shows that it's occurrence based? I ask because mine specifically says claims based .

 

[chocomorsel]

Thanks for the reply.

Have you seen the coverage certificate with your name on it to where it shows that it's occurrence based? I ask because mine specifically says claims based .

No. But what does your contract with the agency say?

 

[IlDestriero]

If they change insurance companies they’d need to buy hundreds of tails for everyone that worked for them. That’s not gonna happen. Forget that.

 

[spike7585]

If they change insurance companies they’d need to buy hundreds of tails for everyone that worked for them. That’s not gonna happen. Forget that.

Yes and they absolutely wouldn't cough up that money. Or if they closed up shop/filed bankruptcy, I'm assuming they won't be held liable and they'll come after me personally.

Seems so risky, but they make it seem like it's the "locums norm" to not have occurrence coverage.

 

[sleepallday]

Had a question for those that have done locums with a large company that provided their malpractice.

Prior to starting my locums shifts (not a continuous week, but instead a 3-4 shifts a month for unknown amount of time), I asked for them to provide my proof of malpractice coverage, and stated that I was hoping it would be occurrence based. The certificate of liability has the locums company as the name for the insured, but my name is near the bottom of the certificate as a provider. However, it appears to be claims based. When I reached out to the locums company, they stated that their form of claims based doesn't need a tail/nose, and they had clarified that prior to obtaining the coverage. They're a large locums staffing company, so while I would be surprised that they didn't do their due diligence, I can't put it past them either.

They ended up giving me a contact from the insurance company, and I reached out to them. They stated that they do almost exclusive malpractice policies for locums, and this is how it is typically done for them, and he confirmed that in this situation I would not need a tail/nose policy. From how he describes it, he states that the LOCUMS COMPANY is the one insured, and as long as they remain insured, I would not need to worry about a tail. So theoretically, I work next week ....I stop working for locums in a month completely......then one year from now a claim is made about a case from next week......I am theoretically covered as long as my Locums company continues to have coverage --- (ACCORDING TO THE INSURANCE AGENT). Apparently of all his locums policies, none of them are of the occurrence based. I asked him if he could provide something written that verifies/confirms what he is saying, and he stated he would.

While he seemed confident during our conversation....well he's an insurance agent so I am going to take his reassurance with a grain of salt. I wanted to see if people who have done locums with large staffing companies have obtained insurance that was occurrence based, or if they typically see claims based as well.

Thanks!

This is correct. Locums companies typically carry a different type of malpractice coverage. It is neither claims based or occurrence based. It is set up in a way that the company can insure a certain number of docs at any one time. For example, the locums company may have a pool of 100 docs signed up with them. The insurance coverage states that only a maximum of 20 different docs can be covered at once. The locums company will then set up their contracts with hospitals so that no more then 20 different docs are working at once. When one locums assignment is completed, they will fill that slot with another doc (or the same doc) with a new assignment. So he is correct when he says the locums company is the one insured.

Now the question is what happens if the locums company no longer exists and as a result there is no longer a policy in place. I believe you would no longer be insured.

 

[spike7585]

This is correct. Locums companies typically carry a different type of malpractice coverage. It is neither claims based or occurrence based. It is set up in a way that the company can insure a certain number of docs at any one time. For example, the locums company may have a pool of 100 docs signed up with them. The insurance coverage states that only a maximum of 20 different docs can be covered at once. The locums company will then set up their contracts with hospitals so that no more then 20 different docs are working at once. When one locums assignment is completed, they will fill that slot with another doc (or the same doc) with a new assignment. So he is correct when he says the locums company is the one insured.

Now the question is what happens if the locums company no longer exists and as a result there is no longer a policy in place. I believe you would no longer be insured.

So I see two issues with that.

1) Like you mentioned, if they theoretically stopped existing before statute of limitations expires, I am imagining you're hosed.

2) What if they renew their policy with another company for a cheaper price? I'm assuming policies are up for renewal yearly (?). I doubt they are buying dozens/hundreds of tails for their docs. At the same time, if they're just looking at their bottom line, what is stopping them from taking the cheaper renewal from another company and leave the docs high and dry?

I know there are some people out there doing locums full time. I can't imagine they're taking such a gamble with every locum assignment they go to, but I also would hate to find out the hard way that I'm getting screwed ha.

 

[spike7585]

So this is the revised contract wording I received: (Replacing the locum company name with simply "COMPANY"

"During the Term hereof, COMPANY shall provide, at its expense, professional liability
insurance for all professional services rendered by Provider under this Agreement in
the amount of $1,000,000 for each occurrence with a per annual aggregate of
$3,000,000. COMPANY has secured, and will continue to secure, claims-made
coverage and prior acts coverage from an A-rated insurance company. In the event
that COMPANY'S policy lapses or expires, COMPANY will be responsible for the
purchase of tail coverage for any Assignment(s) worked by Provider while under
contract with COMPANY . The insurance provided by carrier applies only to agreed
upon services provided by Provider during an Assignment. COMPANY will not provide
liability insurance for these limits unless and until Provider has signed and returned
Confirmation of Assignment to COMPANY ."


Thoughts? I would still definitely feel better with an occurrence policy, but again, they feel like I am speaking a foreign language as it is not what they are accustomed to.

 

[chocomorsel]

Why are you stressing about this?
Do you see the line that says that “company will purchase tail coverage in the event of a lapse?”

If you are that uncomfortable, don’t do it.

 

[caligas]

not sure if this would work:

What about just having your coverage and negotiating higher rates with agencies as they won’t have to pay for malpractice?