As a practicing PA, you’re diagnosing and treating patients in various settings on a daily basis. This responsibility comes with certain risks. For even the most diligent providers, taking care of patients leaves the chance for unexpected lawsuits and you need to ensure you’re protected!
While not legally required to practice, physician assistant malpractice insurance (also known as professional liability insurance) is a must for all practicing PAs. It’s designed to cover you in case any medical legal claims are made against you. Specifically, malpractice insurance will cover the cost of legal fees and settlement prices associated with any lawsuits.
If you feel a bit intimidated by the subject, you’re not alone. It’s a tricky topic. To set your mind at ease, we’re going to answer some FAQs about it. This should give you a better sense of the options available, and what form of coverage might be best for you.
Let’s get started!
Top 5 Questions About Physician Assistant Malpractice Insurance
1. Where can I get physician assistant malpractice insurance?
Malpractice insurance is often provided by your place of work. The AAPA actually recommends confirming this (outside of just a verbal agreement) with your workplace by asking to see the certificate of insurance each year. It’s important to make sure that you’re named on that policy to confirm your coverage.
In addition to your employer coverage, the AAPA recommends having your own personal liability policy that can protect you and is portable from job to job. We’ll have more on this later.
2. What types of employer malpractice insurance are there?
There are two main types of malpractice insurance: claims-made and occurrence policies.
Occurrence policies cover any incident that occurred during the policy period, even if the claim is filed after the policy ended.
In contrast, claims-made policies will only cover a claim if it’s active when the incident occurred and when the claim is filed. This can cause complications when switching jobs, because the employer would likely cancel your claims-made malpractice insurance and leave you uncovered for any claims made for your time at that location.
In this situation, you can get something called tail coverage after the claims-made policy ends. This would cover you for anything that arises after your policy ended, specifically for claims that occurred during the time the claims-made policy was active.
An occurrences policy is definitely superior, but comes with a much higher price tag.
3. Why is it also good to get individual malpractice insurance?
The issues surrounding employer coverage are why the AAPA also recommends pursuing personal liability insurance individually. This allows you to be covered regardless of whether you leave your current position, even with an individual claims-made policy.
Of course, this will cost you. You should definitely ask your employer about reimbursement for individual coverage, perhaps from your CME fund. This is a good thing to talk about during contract negotiations if it’s an issue.
Don’t be surprised, however, if some employers are unwilling to cover this expense. If that’s the case and you still wish to pursue individual insurance, the cost to you would be about $2,000 per year for a claims-made policy.
While the decision to also get individual liability insurance is a personal one, there are certain situations where it’s an especially good idea. For example, if you’re currently doing any per diem, moonlighting, or telehealth work, it’s crucial to ensure you’re covered during these endeavors. In addition, if you’re participating in any volunteer work, you likely don’t have malpractice coverage during those times.
4. Who provides good individual physician assistant malpractice insurance?
The AAPA endorses the CM&F group for liability insurance policies. I took the time to gather some quotes for possible insurance options.
As expected, occurrence policies are much more expensive than claims-made policies and come with a shocking price tag, because they provide lifelong coverage during the policy timeline and don’t require any additional tail coverage.
5. What is the cost of physician assistant malpractice insurance?
For PA students, there are many options for free liability insurance. Otherwise, the price of liability insurance varies based on your specialty.
Class one roles, such as family medicine, have less costly premiums than class three roles, such as my position in cardiothoracic surgery.
They also have class two roles, for providers participating in higher- risk areas less than half of the time.
(The quotes I’m going to share are based on coverage with a maximum incident limit of $1 million and total aggregate limit of $3 million, which appears to be average. They’re also based on full-time work, as there would be a discount for only part-time coverage.)
Occurrence Policies
- Class one: ~$4,119/year
- Class three specialty: ~$6,178/year
Again, because they provide thorough coverage, occurrence policies are much more expensive and therefore much less popular.
Claims-Made Policies
In contrast, the claims-made policy quotes were much more reasonable.
- Class one: ~$1,500/year
- Class three: ~$2,250/year
Therefore, most individuals pursuing individual coverage will opt for the claims-made policy.
The Bottom Line
Overall, at minimum you need to ensure malpractice coverage is provided by your employer at your current position. However, many providers opt to protect themselves further with individualized malpractice insurance.
At the end of the day, the choice is your own, but relying solely on your employer’s coverage does come with risks. You owe it to yourself to get the protection you need—after all, it’s important to look out for our patients, but remember to look out for yourself, too! Stay safe out there, and stay covered. 💙
