Should associate dentists buy their own malpractice insurance even if their employer offers it?

[Apexica]

If your practice owner or DSO offers you malpractice insurance, should you still purchase your own anyway? Here are some scenarios that I've read about:

• You are being sued, the owner believes you were negligent and fires you before the case is adjudicated, leaving you uninsured.
• If he doesn't fire you, he might sue you to recover the payment made on your behalf, which might bankrupt you.
• The owner allows his (and your) malpractice coverage to lapse, leaving you unknowingly uninsured or affecting future "prior acts" coverage with your new insurance company.
• If other associate dentists in the same practice get sued and take a big bite out of the insurance's annual policy limit, there might not be enough for you if you were to get sued afterwards.

How realistic is any of the above? Does anyone have any input regarding this? If anyone believes we should buy our own malpractice insurance anyway, which company would you recommend?

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[InspiredDDS]

My understanding is that malpractice policies provided by the employer often have a clause giving the employer “peer consent to settle”, meaning your employer can settle on your behalf. You should get your own policy. Often your employer will reimburse you.

 

[Thehighwind87]

My understanding is that malpractice policies provided by the employer often have a clause giving the employer “peer consent to settle”, meaning your employer can settle on your behalf. You should get your own policy. Often your employer will reimburse you.

My malpractice insurance is around 3000... yeah if you can find an employer to reimburse that...good luck. Regardless- I do think it's wise for anyone that practices to carry their own malpractice insurance. Yes 3k is alot, and expensing it as a W2 sucks...but at the end of the day- you have to protect yourself and your license. I would especially do it- if you have positive net worth and a big nest egg. You never know what kind of policy, limitations, and limits a company may have, and the last thing you need in life is to be sued for x amount at x practice that you worked at 2 years ago- and no longer are at- and then start asking questions about your policy that your ex-employer retains.

 

[Apexica]

My understanding is that malpractice policies provided by the employer often have a clause giving the employer “peer consent to settle”, meaning your employer can settle on your behalf.

If you give your employer consent to settle and a patient injury resulted from errors that both you and the practice made, then isn't it possible that the employer can blame everything on you? And if everything is blamed on you, then couldn't it have implications if your state licensing board becomes involved?

the last thing you need in life is to be sued for x amount at x practice that you worked at 2 years ago- and no longer are at- and then start asking questions about your policy that your ex-employer retains.

My understanding is that if your employer purchased an "Occurrence" policy for you, then you will be covered for any claim while you were under that policy, regardless of when the claim is made. So if you leave the employer's office and one of his patients sues you 2 years later, you will still be covered since you had an "Occurrence" policy at the time.

Now if your employer purchased a "Claims Made" policy for you (which is more likely the case since it's cheaper), then it's different. In that case you're only covered until the insurance expires (ie/ when you leave the employer). So in that case if one of his patients sues you 2 years after you leave, you won't be covered. And that's why "Tail Coverage" is usually purchased after a "Claims Made" policy ends so it protects you even after the insurance has expired. But back to the scenario if the employer fires you, are you able to purchase "Tail Coverage" if the policy belonged to his practice or if there was a lapse in coverage? Say you had a flaky employer who let his (and your) insurance lapse. Then later if you change jobs or open your own practice, your new insurance company won't cover "prior acts" if there was a lapse in coverage. That means that after you leave the employer, you won't be protected from lawsuit claims before the gap and this might be a substantial time period of being uninsured.

This leads to another question, if you do end up buying your own insurance is it better to have an "Occurrence" policy or a "Claims Made" policy? If you plan on being covered for every year of your career (like car insurance), then wouldn't it be cheaper to get a "Claims Made" policy since they are cheaper in general and you would never have to buy "Tail Coverage" as long as you stay continuously insured? Well, you would probably have to buy it once and that's when you retire but wouldn't that be better than constantly having to buy it throughout your career? Any thoughts on that?

 

[Thehighwind87]

If you give your employer consent to settle and a patient injury resulted from errors that both you and the practice made, then isn't it possible that the employer can blame everything on you? And if everything is blamed on you, then couldn't it have implications if your state licensing board becomes involved?

My understanding is that if your employer purchased an "Occurrence" policy for you, then you will be covered for any claim while you were under that policy, regardless of when the claim is made. So if you leave the employer's office and one of his patients sues you 2 years later, you will still be covered since you had an "Occurrence" policy at the time.

Now if your employer purchased a "Claims Made" policy for you (which is more likely the case since it's cheaper), then it's different. In that case you're only covered until the insurance expires (ie/ when you leave the employer). So in that case if one of his patients sues you 2 years after you leave, you won't be covered. And that's why "Tail Coverage" is usually purchased after a "Claims Made" policy ends so it protects you even after the insurance has expired. But back to the scenario if the employer fires you, are you able to purchase "Tail Coverage" if the policy belonged to his practice or if there was a lapse in coverage? Say you had a flaky employer who let his (and your) insurance lapse. Then later if you change jobs or open your own practice, your new insurance company won't cover "prior acts" if there was a lapse in coverage. That means that after you leave the employer, you won't be protected from lawsuit claims for the entire time you were working with him.

This leads to another question, if you do end up buying your own insurance is it better to have an "Occurrence" policy or a "Claims Made" policy? If you plan on being covered for every year of your career (like car insurance), then wouldn't it be cheaper to get a "Claims Made" policy since they are cheaper in general and you would never have to buy "Tail Coverage" as long as you stay continuously insured? Well, you would probably have to buy it once and that's when you retire but wouldn't that be better than constantly having to buy it throughout your career? Any thoughts on that?

I bought a claims made policy. Regardless I think you are thinking way to much into it. Go with a solid company- medpro is good. Go claims made.

Avoid doing any high litigation procedures, and always practice to the best standard of care and you will be fine. I've been practicing for a decade. I've never had issues, and I always refer out endo, omfs, etc. I sleep well at night and all my patients are happy.

The bottom line is being able to sleep well at night, and I do just fine in that department. It is however likely you will be sued or looked into during your career- and its inevitable as we practice on alot of people. Just do the best standard of care and know when you need to refer.

 

[InspiredDDS]

There were a lot of questions above and I’ll answer as much as I can with my limited knowledge.

Yes, I would expect an employer to blame any medical misadventure on me, for two reasons. One, I am always a little skeptical of any employers true intentions. Two, simply because that would make sense for my employer to do, from a business standpoint.

If there is a settlement against you, yes it may get the attention of the state licensing boards as it will be reported to the National Practitioner Database.

If your employer provides a claims made policy, and you leave that job for whatever reason, you will need to purchase a tail, and tails can be expensive. In my mind, the last thing I would want to be faced with, when finding myself unemployed, is a large expense that can’t be put on the back burner. Also, claims made policies get more expensive as time goes on

If your employer offers you occurrence, be sure you have a full understanding of the policy as your employer may have the ability to settle on your behalf.

For me, the safest bet was to purchase an occurrence policy, on my own. Malpractice insurance is one place I didn’t want to cheap out on. No worries about my employer, or needing to purchase a tail. (BTW, your malpractice company can drop you…) Also, wouldn’t referring out every OS/Endo patient cost you more throughout your career than a solid malpractice policy?

I pay $123 monthly, which is peanuts compared to our physician colleagues pay.. It is fully reimbursed by my employer, up to $3k a year. I am an Endodontist 4 years out of training. Performing molar endo is higher risk, in terms of malpractice. I don’t do any sedation. I use The Doctors Company.

 

[Apexica]

This thread has convinced me to purchase my own malpractice insurance even if my employer has a policy that covers me.

My understanding is that malpractice policies provided by the employer often have a clause giving the employer “peer consent to settle”, meaning your employer can settle on your behalf. You should get your own policy. Often your employer will reimburse you.

Large DSO's usually pay for the malpractice insurance of its employees. It's a part of their benefits package. Do you think it's possible to negotiate with these big guys to reimburse you if you want to pay for your own malpractice insurance?

If they refuse to reimburse you and they still have your name in their company policy, can they still settle on your behalf even if you purchased your own malpractice insurance?

 

[Blueshirts]

How much malpractice is suggested to buy, FL says 100k/300k minimum, which seems very low

 

[Thehighwind87]

How much malpractice is suggested to buy, FL says 100k/300k minimum, which seems very low

100k? Lol if you get sued- get ready to go bankrupt. Always go with a decent amount- I have 2/4 million. Thinking of upping it to 3 mil.

The price you pay monthly is barely that much and if you ever get sued you will wish that you have a good policy with high limits. Otherwise you go bankrupt and say bye to your livelihood.

 

[Saddleshoes]

Here is a thought...

If you already have your own malpractice insurance it makes it easier to...
...Work a second part time gig.
...Jump ship if this job becomes a problem.
...make the step to solo practice.

 

[Apexica]

If you already have your own malpractice insurance it makes it easier to...
...Work a second part time gig.
...Jump ship if this job becomes a problem.
...make the step to solo practice.

I agree with all of that. When it comes time to sign a contract with a large DSO, is it as simple as just telling them that you want to opt out of their malpractice insurance and use your own instead? Is there any reason why they wouldn't allow that?

 

[Blueshirts]

I agree with all of that. When it comes time to sign a contract with a large DSO, is it as simple as just telling them that you want to opt out of their malpractice insurance and use your own instead? Is there any reason why they wouldn't allow that?

You are an adult, you can do whatever you want. You hold all of the power, not the DSO. They need you, you don't need them, never forget that.

 

[Thehighwind87]

You are an adult, you can do whatever you want. You hold all of the power, not the DSO. They need you, you don't need them, never forget that.

Unless you are in a boatload of debt:

500k+ in student loan debt... + house for 500k + having a family (newborn) ...and then you realize that even though you hold all the power- the corporation is the only way for your ends to your means.

Never underestimate the power of debt and how it can effect your mental and physical well being. Being 1 mil in debt while working as an associate with obligations (mortgage, kid) will change you.

 

[Saddleshoes]

Never underestimate the power of debt and how it can effect your mental and physical well being. Being 1 mil in debt while working as an associate with obligations (mortgage, kid) will change you.

Never underestimate the power of debt and how it can effect your mental and physical well being. Being 1 mil in debt while working as an associate with obligations (mortgage, kid) will change kill you.

There! I got that fixed.

 

[Apexica]

You are an adult, you can do whatever you want. You hold all of the power, not the DSO. They need you, you don't need them, never forget that.

Yes, I understand that anyone has the power to buy their own malpractice insurance but even if you do, if for some reason they don't remove your name from their policy, then they still might be able to settle a case on your behalf, even if it is a winning case. The reason they might do that is because it might be cheaper for them to settle than to hire lawyers and defend you in court. This malpractice settlement claim would then be reported to the National Practitioner Data Base under your name. If there is a large amount involved, your state board would be notified and it could have implications on your license. And that's one of the reasons for getting your own malpractice insurance in the first place, to avoid all that. So if they don't remove your name from their policy, then it kind of defeats the purpose of getting your own malpractice insurance.

 

[oralcare123]

Absolutely yes. Most DSOs are nightmare and you will want to leave