Transcription:
Part 2: Everything You Ever Wanted to Know About Malpractice Insurance

VO: This podcast is intended to provide information only on certain risk management topics, and is not to be construed as providing legal, medical or professional advice of any form whatsoever. Because federal, state and local laws vary by location, nothing in this podcast is intended to serve as legal advice or to establish any standard of care. Legal advice, if desired, should be sought from competent counsel in your state.

Dr. Julie Goldberg: Hello and welcome back to Forecast, the podcast designed to help dental students move forward in their practices. Brought to you by Fortress Insurance, the leading professional liability insurance coverage provider for dentists. Not familiar with Fortress Insurance yet? Get in touch with Fortress and find an agent by visiting our website at dds4dds.com. That's DDS, the number four, DDS.Com.

I'm Dr. Julie Goldberg, the education program developer at Fortress Insurance. So for those listeners who've been tuning in to Forecast, welcome back and thanks for listening. For those of you who are new, welcome to Forecast and to Fortress Insurance. We're so glad that you joined us. Now if you've missed an episode, be sure to check out our other recordings at your convenience.

Today's episode is the second in our series on the topic of malpractice insurance. And back with us today is Frode Brudvik, Vice President of Underwriting with Fortress Insurance. So, thanks, Frode, for joining us again in this episode.

Frode Brudvik: It's great to be here. Thanks for having me.

Host: So as we were telling our listeners in our last episode, malpractice insurance, also known as professional liability insurance, is an important protection for dentists against allegations of negligence related to dental services. And this type of coverage can help protect against the financial costs associated with a claim. Today, we'll do a deeper dive into this important topic.

Guest: We sure will, Julie. And you summed up quite nicely what malpractice insurance is.

Host: Well, thanks, Frode. As we noted in our last episode, there are many details related to types of coverage that may be confusing for new-to-practice dentists, and it's important that they seek professional guidance on this, isn't it?

Guest: Yes, it definitely is, Julie. A qualified licensed insurance agent is a valuable partner who can provide information on the types of malpractice insurance, appropriate coverages and limit needs to adequately protect your legal and financial interests. It's important to build this relationship early in your career, so the agent becomes familiar with you and could provide guidance as your practice and career grows.

Host: So, Frode, it sounds like the issue of malpractice insurance is likely front and center in employment negotiations. Can you tell our listeners a little bit about that?

Guest: Absolutely, I'd be happy to. Unfortunately, sometimes in the excitement of accepting an employment offer, the topic of malpractice coverage is overlooked or not thoroughly discussed. Among other key considerations such as salary, retirement, continuing education, and health insurance, you'll want to clarify who is responsible for malpractice insurance and incorporate that into your employment agreement.

For example, does the practice provide malpractice insurance or is it your responsibility to obtain and maintain the coverage? This is important to know if the practice provides malpractice insurance to its employee dentist. It's important to understand how is it provided. Will you receive an individual policy? If so, will you control the policy and be reimbursed by the practice? Or will they obtain the policy and pay the premium directly on your behalf? Will you have a choice of malpractice insurance carriers or policy type? Remember, we talked about claims made and occurrence previously. If the policy claim is made, who's responsible for tail coverage when the relationship ends? Or does the practice have a group policy that you will be added to? if so, you'll want to know the same things as for the individual policy. You'll also want to know if there are any restrictions that might impact you. For example, some group policies only provide coverage to employ dentists while working on behalf of the group. If you maintain any other practice activities, this is important to know and understand. Or if perhaps you volunteer your services, it's important to know this, you might be required to have other coverage for these activities.

Host: Those are all really great points, Frode. If the employer is handling the coverage, is there anything the employed dentist should be doing?

Guest: Yes, definitely, Julie. If someone other than you is managing your malpractice coverage, you should ask for proof of coverage via certificate of insurance, so you know what coverage is being provided and that it is being properly maintained.

Host: Frode, are there any other things our listeners should be aware of when it comes to malpractice coverage?

Guest: Yes. Another feature to look for in malpractice coverage, whether your own policy or through your employer, is a consent to settle clause. This in effect allows the dentist to participate in defending claims as well as the disposition of the case. It defines the conditions subject to any policy limitations under which the insurance company can settle a malpractice claim made against the insured dentist. It will also stipulate that the insured dentist has the right to refuse any proposed settlement. An employed dentist who is covered under the employer's policy should also understand whether they or the employee maintains the right to a consent to settle.

Host: So Frode, it sounds like the consent to settle provision is an important topic to understand.

Guest: Yes, it definitely is. And your insurance agent will be able to review the policy provisions and explain the consent to settle provision thoroughly so there are no surprises later on.

Host: So Frode, what about limits of coverage? How do you decide what limits are appropriate and what else should dentists be looking for?

Guest: That's another great question, Julie. Dental malpractice insurance carriers will typically have various limit options for you to choose from. When deciding what limits to select, the dentist should consider their individual risk tolerance in conjunction with the types of procedures they'll be performing and the jurisdiction they'll be practicing in.

Host: I'm assuming this is another thing the agent can assist with.

Guest: Yes, definitely. This is a very common question, and the local agent will be able to discuss your particular circumstances and help you select what is most appropriate for you at that particular point in your career. They will also be able to explain how limits work. Malpractice limits typically will have two parts, the per incident limit and the aggregate limit. The first limit is the maximum amount an insurer will pay for a single malpractice claim. The second limit is the total amount an insurer will pay for all claims incurred within a single policy period, and a policy period on these policies is typically one year. For example, a policy providing a 1-million, 3-million limit of liability will provide coverage for up to 1 million for a single claim and not more than 3 million for all claims in a single policy period.

Another important thing to understand is whether defense costs are included within the limit of liability or if they are in addition to the limits of liability. Defense costs are costs associated with defending a claim. In most cases, defense costs are in addition to and not included in the limits of liability. This means the attorney fees and cost defending the claim will not erode the amount available to make an indemnity payment. However, some policies may include the insured's expenses in defending the claim in the limits of liability. This is important to understand. In all instances, the policy should specify which limits apply.

Host: So, as we know, litigation can certainly be expensive. It's important to consult your insurance agent and consider the best limits for your given area of practice.

Guest: That's right. The best policy, of course, is to utilize and practice risk management strategies to mitigate patient injury, claims and damage reputation.

Host: Well, you certainly summed it up, Frode. And a dental professional liability insurance provider like Fortress provides exactly that, proven risk management strategies and resources to mitigate risk in the dental office. Well, thanks, Frode, for sharing with our Forecast listeners, the types of malpractice insurance and a number of important details to consider. It was really great having you.

Guest: Thanks, Julie. And thanks to the listeners. All the best as you transition to practice.

Host: Yes, a big thank you to our listeners. We appreciate you taking time out of your day to tune into Forecast podcasts. Our next episode will start another two-part series on the litigation process. You won't want to miss it.

VO: Do you want to learn more or do you have a specific question to ask? Contact Fortress Insurance through our website at dds4dds.com. That's DDS, the number 4, DDS.com.