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Negligence Based Coverage – Vital for Physicians

By Gary A. Cook; MSFS, CLU, RHU, CFP® CMP™ 

Negligence is generally the basis for liability “umbrella” insurance.   

Definition of Negligence

Negligence may be defined as the failure on the part of an individual to exercise the proper degree of care required by the circumstances.

It may consist of the failure to do something, or doing something that should not have been done.  It is the omission to do what a reasonable and prudent person would have done in the ordinary conduct of human affairs.

Umbrella Insurance Policy Structure

Umbrella insurance policies should be considered anytime the medical professional or healthcare practitioner has a substantial current income or has accumulated a sizable estate, and is concerned about asset protection from potential litigation.   

Umbrella policies vary greatly in structure so care should be taken to examine all of the various aspects of the policy carefully. Not only do umbrella policies vary in structure, but they can be arranged with many different endorsements to meet the specific needs of the medical professional. 

Examples:

A few illustrations for the practicing physician would be:

· The addition of personal injury coverage (to include libel, slander and defamation of character).

· Incidental medical business pursuits (to include coverage to personal automobiles where the healthcare or business activity was incidental and not the primary purpose of the use of the car).

· The broadening of personal automobile coverage (to the insured regardless of whose vehicle they were driving and the coverage afforded that vehicle).

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Assessment

And so, what has been your experience with this insurance policy type which is typically very inexpensive?

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OUR OTHER PRINT BOOKS AND RELATED INFORMATION SOURCES:

• PRACTICES: www.BusinessofMedicalPractice.com
• HOSPITALS: http://www.crcpress.com/product/isbn/9781466558731
• CLINICS: http://www.crcpress.com/product/isbn/9781439879900
• ADVISORS: www.CertifiedMedicalPlanner.org
• FINANCE: Financial Planning for Physicians and Advisors
• INSURANCE: Risk Management and Insurance Strategies for Physicians and Advisors
• Dictionary of Health Economics and Finance
• Dictionary of Health Information Technology and Security
• Dictionary of Health Insurance and Managed Care

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