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Malpractice Insurance

EXPERT ADVICE

Assets, License Best Protected

Through Professional

Liability Insurance

BY VANESSA ORR

As premiums continue to increase for
professional liability coverage, a number
of physicians are choosing to self-insure,
or “go bare.” And while Florida law does
not require physicians to have professional
liability insurance, the risks far outweigh
the rewards.
“Self-insuring is analogous to having a
home that, because you paid the mortgage
off, doesn’t require you to carry insur-
ance,” said Bill Gompers, CFE, producer,
Danna-Gracey | Risk Strategies Company.
“While you may think you’re saving
money, if something happens to the house, Bill Gompers
you’re paying for it.”
Physicians in Florida without liability physician and forcing their insurer to go
coverage are only required to post that after that plaintiff more heavily.”
information in their offices and sign an He adds that many doctors think erro-
affidavit promising to pay the first neously that they will be dropped from
$100,000 of a settlement or a judgement if lawsuits once the plaintiff finds out they
they do not have hospital privileges, or are bare. ”More common is that the plain-
$250,000 if they do. tiff’s attorneys "persuade" the bare doctors
“Many people say that attorneys will not to testify against their co-defendants in
go after physicians who do not have insur- return for favorable treatment,” he said.
ance because it takes a lot of money to “In contrast, when all of the co-defendants
develop a liability case, and it’s not worth are insured with the same carrier, there is
doing unless it’s a significant case,” said a strong unity of defense that wins many
Gompers, adding that laws in Florida that cases.”
protect assets often do so in favor of physi- He notes that the average cost of defend-
cians. “They have to put out a lot of ing a case that doesn’t go to trial is
money with the risk of little return. between $25,000-$50,000; if it goes trial,
“There are studies that show that physi- it can cost $100,000-$250,000.
cians without insurance don’t get sued as “If you ultimately lose, in order to keep
much, and other studies that show that your license you’ll end up writing a check
they do, especially if the lawyers have a for a minimum of $250,000,” said
significant case. Without addressing the Gompers. “And if you don’t pay it within
pros and cons of this, the most recent sta- 60 days after exhausting all appeals, the
tistics show that more than 65 percent of board will suspend it.”
physicians over age 55 have been sued.” In addition to HIPAA protection and
While the vast majority of these suits are some cyber protection, Gompers notes SUN AAYY MARCHH6
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not successful, it still costs physicians time that the most important benefit of profes-
and money to put up a defense. “It can be sional liability insurance is that it includes Miramar Regional Park
a life-changer,” said Gompers. “That’s why license defense. “In Florida, when a pro- 16801 Miramar Parkway
it’s important to be insured by a company fessional liability claim is filed, it is incum- Miramar, Florida
that has your best interests in mind and bent on the plaintiff and the plaintiff’s
can provide competent counsel that shares attorney to advise the state, who will
your same priorities and objectives.” invariably open up a Department of IN-PERSON
Although Florida doesn’t require profes- Health investigation looking at that physi-
sional liability insurance, some insurance cian,” he said. & VIRTUAL EVENT
plans and programs do require physicians “While many asset protection attorneys
to have this coverage, as do many hospi- tell their clients that they have successfully
tals, surgical centers and imaging centers. put together a plan that bulletproofs their Register TODDAAYY at ToourdeBrowward.com
T
Bare doctors may also find that they have assets against judgements, unless they’re
trouble recruiting new young doctors into willing to give you an affidavit in writing
a practice unless that practice is covered. that should it be breached they’ll pay it for
“Physicians can still be held liable for you, you need professional liability cover-
judgements against them, even though age,” he added. “The fact is, things that
they feel they are protected by working they think might be bulletproof maybe
within a larger system,” said Gompers. aren’t, and that’s not something you want
“And in some institutions where the to learn while a court of law sorts it out.”
employees are fully covered, an independ-
ent physician may find that they get For more information, contact Bill
thrown under the bus if no one is repre- Gompers at bill@dannagracey.com,
senting their interests; the other physi- (888) 777-7173 or
cians or health system may gang up visit www.dannagracey.com.
against them, blaming the independent

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