Chiropractors: Malpractice Insurance—Necessary?

Chiropractors are liable for malpractice or professional negligence, and while it may not be a legal requirement in some states, malpractice insurance is essential for chiropractic practices to operate safely and protect against costly litigation. Malpractice insurance covers professional liability risks that occur during practice, such as accusations of negligence in treatment, which can severely impact a chiropractor's finances, reputation, and future earning potential. In the chiropractic field, there are two main things one is at risk of facing a lawsuit over: failure to diagnose, and negligent spinal manipulation.

Why malpractice insurance is important for chiropractors

Chiropractic malpractice insurance is of utmost importance for chiropractors to protect themselves and their businesses from financial strain and bankruptcy. While chiropractors are not considered doctors, they are liable for malpractice or professional negligence, and a mistake in spinal manipulation can lead to serious injuries and lawsuits.

Chiropractors work with the spine and neck, and an error in this area can result in severe consequences for patients. For instance, incorrect spinal manipulation may lead to herniated discs, pinched arteries, and strokes. As such, chiropractors can be held responsible for failure to diagnose and negligent spinal manipulation, which can result in costly litigation. Malpractice insurance provides financial protection in the event of a lawsuit, covering legal defence costs and settlement amounts.

Additionally, chiropractors should consider the type of coverage that best suits their practice. Occurrence coverage offers permanent protection for any incident that occurs during the policy period, regardless of when the claim is filed. On the other hand, claims-made coverage only applies if the policy is in effect when the incident occurs and when the lawsuit is filed. Chiropractors should also ensure their policy includes loss of earnings reimbursement, as defending oneself in court can result in significant time away from work and a loss of income.

Chiropractors must also be mindful of state requirements and choose an insurer with a good financial rating to ensure they can pay out claims. By having the appropriate chiropractic malpractice insurance, chiropractors can protect their professional reputation and license, safeguarding their business and patients.

The risks of not having malpractice insurance

• Financial Strain and Business Disruption: Without malpractice insurance, chiropractors may face substantial financial challenges if a patient files a lawsuit. The cost of legal defence, settlements, and court-related expenses can quickly add up and disrupt the operations of a chiropractic business.
• Failure to Diagnose and Negligent Treatment: Chiropractors can be sued for failure to diagnose a condition correctly or for negligent spinal manipulation, which could result in serious injuries to patients. The financial implications of such incidents can be covered by malpractice insurance.
• Loss of Earnings: During legal proceedings, chiropractors may need to spend significant time away from their practice, resulting in a loss of earnings. Malpractice insurance can provide reimbursement for this lost income, ensuring the business can stay afloat during the legal process.
• Sexual Misconduct Allegations: Chiropractors, like other healthcare professionals, may face allegations of sexual misconduct. Standard liability insurance may not cover these types of allegations, but additional coverage can often be purchased to protect against such claims.
• Bankruptcy and Loss of License: In the event of a lawsuit, chiropractors without sufficient insurance coverage may face bankruptcy and could even lose their professional license. Malpractice insurance helps protect chiropractors from these dire consequences.
• Emotional and Mental Toll: Legal battles can take a significant emotional and mental toll on individuals. The stress and anxiety associated with facing a lawsuit can be overwhelming. Adequate insurance coverage can provide peace of mind and help chiropractors navigate these challenging situations.

Chiropractors must carefully consider the potential risks they face and ensure they have appropriate malpractice insurance coverage to safeguard their business, finances, and reputation.

The different types of malpractice insurance

Chiropractors, like all healthcare providers, are at risk of being sued for medical malpractice. This can occur when a chiropractor fails to act, or acts in a way that results in harm or injury to a patient. The two main areas in which chiropractors are at risk of facing a lawsuit are failure to diagnose and negligent spinal manipulation.

There are two types of medical malpractice insurance: claims-made and occurrence. Claims-made insurance is more common and is cheaper than occurrence insurance. It provides coverage only for incidents that are reported while the policy is in effect. This means that both the incident and the filing of the claim must happen while the policy is active. If you drop a claims-made policy, you are not covered for any suits filed later unless you pay for "tail coverage", an extended reporting endorsement. Tail coverage is typically very expensive, often three times the amount of an annual premium.

Occurrence insurance, on the other hand, offers seamless protection, regardless of job or location changes. It provides lifetime coverage for incidents that occurred while the policy was in effect, no matter when the claim is filed. For example, if an incident occurs while insured by carrier A with occurrence insurance, but the claim is filed after switching to carrier B, carrier A will still provide malpractice coverage. Occurrence insurance is a more stable and permanent option, but it is also more expensive.

How to choose the right insurance provider

While chiropractors are not licensed by medical boards and do not attend medical school, they are liable for malpractice or professional negligence. Although malpractice insurance for chiropractors may not be a legal requirement in some states, it is a smart investment. This type of insurance is designed to protect your professional reputation, finances, offices, and other assets in the event of a lawsuit.

When choosing an insurance provider, there are several factors to consider to ensure you find the right one for your needs. Here are some guidelines to help you make an informed decision:

• Independent Agent vs. Insurance Company: You can purchase insurance directly from an insurance company or through an independent agent. An independent agent works with multiple insurance companies and can offer a variety of options to find the best fit for your specific needs. They will assist you in navigating the complexities of insurance and help you understand the different coverages, exclusions, and endorsements.
• Company History and Reputation: Research the insurance companies you are considering. Look into their history, including how long they have been in business, their mission and values, their leadership, and their community involvement. Understanding their reputation and track record can provide valuable insights into their reliability and customer satisfaction.
• Financial Strength: Assess the financial strength and stability of the insurance company. Check their financial ratings provided by independent rating agencies. A strong financial standing ensures they have the capacity to meet their financial obligations and pay out claims when needed.
• Coverage Options: Select an insurance company that offers appropriate coverage for your professional needs. Understand the different types of malpractice insurance, such as occurrence coverage and claims-made coverage, and choose a provider that offers the specific protection you require.
• Customer Service: Evaluate the insurance company's customer service quality. Consider factors such as ease of doing business, availability of 24/7 customer support, online claim reporting, and social media presence. Choose a company that is responsive, accessible, and dedicated to supporting its clients.
• Available Discounts: Explore the discounts offered by different insurance providers. Many companies provide discounts for various factors, including newer homes, specialized construction, vehicle safety features, financial stability, or group affiliations. Taking advantage of applicable discounts can help make your insurance more affordable.
• Referrals and Reviews: Tap into your network and seek referrals from family, friends, and colleagues who have experience with insurance companies. Their firsthand accounts can provide valuable insights into the level of service, claims handling, and overall satisfaction they have experienced with a particular provider. Additionally, check for reviews and complaints against the company through reputable sources, such as the National Association of Insurance Commissioners.
• Cost vs. Value: While cost is an essential factor when choosing an insurance provider, it should not be the sole deciding factor. Consider the value offered by the company in terms of coverage, customer service, and additional benefits. Sometimes, a lower price may indicate less coverage or insufficient experience in the industry.
• Risk Management Support: Opt for an insurance provider that can assist you with risk management strategies. Choose a company that can provide guidance on preventing malpractice lawsuits and offer suggestions to mitigate potential risks effectively.

By considering these factors and conducting thorough research, you can make a well-informed decision when choosing an insurance provider. Remember to compare multiple options, seek referrals, and prioritize your specific needs to find the right insurance provider for your chiropractic malpractice insurance.

Additional types of insurance for chiropractors

As with all medical professionals, chiropractors are at risk of malpractice lawsuits. Therefore, malpractice insurance is vital for chiropractors to protect themselves against the financial strain of litigation. However, there are other types of insurance that chiropractors may need to consider to ensure they have comprehensive coverage.

Firstly, chiropractors should consider chiropractic liability insurance. This type of insurance covers claims arising from personal injury or sexual misconduct allegations. While this type of insurance is not mandatory, it is highly recommended to protect chiropractors from costly litigation.

Chiropractors should also be aware of the different types of malpractice insurance policies available: claims-made and occurrence. Claims-made policies cover alleged claims made and reported during the policy period. In contrast, occurrence policies protect against any claims arising from incidents that occurred during the policy period, regardless of when the claim is made. Claims-made policies are usually cheaper, making them a good choice for new practices, while occurrence policies offer more stable and permanent coverage.

In addition to malpractice and liability insurance, chiropractors may also want to consider business insurance. This can include coverage for property damage, business interruption, and employee-related risks. For example, if a fire damages the chiropractor's office, business insurance can help cover the costs of repairs and lost income.

Furthermore, chiropractors who own their practice may want to consider commercial property insurance, which covers the building and its contents in case of damage or loss. This type of insurance can also provide liability coverage if a patient is injured on the premises.

Finally, chiropractors may also want to consider cyber insurance, which protects them in the event of a data breach or cyberattack. With the increasing use of electronic health records and online systems, the risk of a data breach is higher, and cyber insurance can help cover the costs of responding to and recovering from such an incident.

In conclusion, while malpractice insurance is crucial for chiropractors, they should also consider other types of insurance to ensure they are fully protected against potential risks and financial losses. By understanding the different types of insurance available, chiropractors can make informed decisions about the coverage they need to protect their practice and their patients.

Frequently asked questions