Malpractice Insurance: Is It Mandatory In Colorado?

In the state of Colorado, it is illegal for doctors to practice without carrying malpractice insurance. In 1988, the Colorado General Assembly passed a law requiring all licensed physicians and medical license applicants to have a certain amount of malpractice insurance coverage. From January 1, 1990, onwards, Colorado-licensed physicians must maintain commercial professional liability insurance with an insurance company authorized to operate in the state. The minimum coverage required by law is $1,000,000 per incident and $3,000,000 in annual aggregate coverage.

However, this requirement varies across states. While some states mandate a minimum level of insurance, others require medical professionals to have some insurance to qualify for liability reforms. Nearly 32 states do not require medical malpractice insurance and do not have minimum carrying requirements.

Is malpractice insurance mandatory for doctors in Colorado?

Yes, it is mandatory for doctors in Colorado to have malpractice insurance. In 1988, the Colorado General Assembly enacted a law requiring all Colorado licensed physicians and applicants for Colorado medical licensure to maintain certain amounts of malpractice insurance coverage. From January 1, 1990, onwards, Colorado-licensed physicians must maintain commercial professional liability insurance coverage with an insurance company authorized to operate in Colorado.

The minimum coverage required by law is $1,000,000 per incident and $3,000,000 in annual aggregate coverage. This coincides with the state's cap on total and non-economic damages for medical malpractice lawsuits, which are limited to $1 million and $300,000, respectively.

Colorado is one of seven states that require physicians to maintain malpractice insurance. The other six states are Connecticut, Kansas, Massachusetts, New Jersey, Rhode Island, and Wisconsin.

What are the consequences of not carrying malpractice insurance in New Jersey?

New Jersey is one of seven states that require physicians to carry a minimum amount of medical malpractice insurance. This is to protect their professional reputation and finances in the event of a lawsuit. While the amount of coverage required varies from state to state, New Jersey physicians must carry insurance that covers them for at least $100,000 per occurrence and $300,000 in annual aggregate coverage.

The cost of malpractice insurance in New Jersey varies depending on the physician's specialty, location, and history of malpractice claims. Physicians in high-risk specialties, such as surgeons, tend to have higher rates as they require more coverage. New Jersey is among the five states with the highest costs for medical malpractice insurance premiums. Despite the higher premiums, malpractice insurance coverage is well worth the cost for physicians. A premium for malpractice insurance is insignificant compared to the hundreds of thousands of dollars that could be lost due to a lawsuit and legal fees.

In addition to state law, several hospitals and other facilities in New Jersey require that visiting doctors have medical malpractice coverage. Therefore, it is crucial for physicians in New Jersey to carry medical malpractice insurance to comply with legal requirements and protect themselves financially.

What are the minimum insurance requirements for doctors in Pennsylvania?

In Pennsylvania, medical malpractice insurance is required for all medical professionals who practice within the state. This includes doctors, nurses, and medical technicians. The required Pennsylvania medical malpractice insurance limits for physicians and surgeons are $1,000,000 per claim and $3,000,000 as an annual aggregate. The primary (private) policy covers the first $500,000 of any claim, and the MCARE fund covers excess losses of up to another $500,000.

There are two commonly used policy forms in Pennsylvania: Claims-Made and Occurrence. The one chosen will depend on the individual doctor's particular needs and long-term plan. Claims-made malpractice insurance provides coverage if the policy is in effect when the incident took place and when the claim is filed. Occurrence malpractice insurance provides coverage for incidents that occurred during the policy year, regardless of when a claim is reported.

When purchasing medical malpractice insurance in Pennsylvania, it is important to choose an insurer with a good reputation that offers reliable coverage at an affordable price. The policy should include all necessary coverage types, such as medical expenses, damages, and loss of income. It is also important to review any exclusions or limitations that may apply. Working with an experienced malpractice insurance broker can be beneficial in navigating the different options and ensuring the right policy is chosen.

What does going bare mean?

"Going bare" is an insurance term that means a medical provider is practising without professional liability or medical malpractice insurance. While there is no federal law requiring doctors to carry medical malpractice insurance, some states do.

In the US, roughly 32 states do not require medical malpractice insurance and have no minimum carrying requirements. The remaining 18 states are split into two groups: those that require minimum levels of insurance, and those that require medical professionals to have some insurance to qualify for liability reforms.

The trend of going bare has decreased over the past 10 years as meaningful tort reform in many states has made it more affordable for physicians to purchase professional liability insurance. However, the cost of insurance remains a primary reason for going bare.

What are the risks of not carrying malpractice insurance?

Malpractice insurance is a form of professional liability insurance that protects healthcare providers from financial losses due to claims of professional negligence. While it is not required in every state for every profession, maintaining malpractice coverage can reduce your financial risk. Here are some risks you face if you choose not to carry malpractice insurance:

• Financial Risk: Malpractice insurance covers a range of expenses associated with defending and settling malpractice suits, including attorneys' fees and court costs, punitive damages, and compensatory claims for medical damages. Without this insurance, you will be personally responsible for covering these costs, which can be financially devastating.
• Loss of License: In some states, carrying malpractice insurance is a requirement for maintaining your professional license. For example, in Florida, healthcare professionals must meet certain stipulations, such as posting a bond or having an escrow account, to be exempt from insurance requirements. Failure to comply with these requirements can result in the loss of your license to practice.
• Employment Limitations: Many hospitals and healthcare facilities require malpractice insurance as part of their risk management plan. Not having malpractice insurance can limit your employment opportunities and hinder your ability to work with patients.
• Lawsuits and Settlements: Even the most experienced healthcare providers can make mistakes. Without malpractice insurance, you are exposed to the risk of lawsuits and costly settlements. A single malpractice suit can have significant financial implications.
• Protection for Employees: Malpractice insurance not only protects you but also covers your employees who interact with patients. This includes nurses, paramedics, and other medical staff who are vulnerable to malpractice claims.
• Peace of Mind: Malpractice insurance provides peace of mind, knowing that you are protected financially and legally in the event of a malpractice claim. It allows you to focus on providing quality care to your patients without the constant worry of potential lawsuits.

While the cost of malpractice insurance may be a concern for some, the risks of not carrying it far outweigh the benefits. It is essential to understand the requirements in your state and the specific risks associated with your profession to make an informed decision about malpractice insurance.

Frequently asked questions