It is very important for professionals
holding licenses to get malpractice insurance in California. Many employers in the state that don't offer their own
professional liability or malpractice insurance usually require proof of a personal policy for applicants to even
be considered for employment. Students entering professional careers are usually also required to purchase
malpractice insurance while they're in school. This is imperative for medical students.
Rates are higher in California than many other states, but that often changes. The state is fairly good about
regulating premium amounts, especially those paid by physicians. Medical malpractice rates fluctuate in California.
This is because they review the loss ratio each year. If losses are low in comparison with the amount of money
coming in, premiums decrease. Oppositely, if the loss rate is high, the premiums increase.
Malpractice Insurance California - What
You Need to Know
Loss ratios for malpractice insurance
in California fluctuate based on the amount of claims filed. Depending on the field the professional works in and
the risk associated with their area of concentration in that field, rates vary. Medical professionals see the
highest rates, especially those in surgical or emergency care settings. There are two different types of insurance
coverage for malpractice in the state - claims-based and occurrence-based.
Occurrence-based insurance covers each incident of malpractice, up to a certain amount. Along with this provision,
there is a maximum amount that is allowed per cycle. Usually professionals in higher-risk positions purchase
coverage that is at least $1 million/$3 million. This means that $1 million is allowed for each occurrence, with up
to $3 million total each cycle. If an occurrence totals over the limit, the professional is responsible for the
Claims-based insurance is looser than
occurrence-based coverage. Professionals may choose to file a claim for a lawsuit or forgo filing, depending on how
expensive it is and the nature of the incident. The more claims that are filed, the higher their premium will be.
This provides a good incentive to avoid filing claims. There is no limit on claim amounts, but only specific
services and damages are covered.
Malpractice Insurance California Tips
Most companies that offer malpractice
insurance in California also have additional "perks" in their policies. License protection, travel benefits and
other compensation related to intangible losses are often bonus items in a policy. Professionals who accept their
employer's professional liability insurance should always review it to ensure it is ample. Personal policies
usually have much more complete coverage.
Last modified: May 15, 2011