How Does Medical Malpractice Insurance Work in Florida?
Many people do not know that although Florida law requires doctors to have medical malpractice insurance, there are multiple loopholes that allow medical providers to get out of having an actual insurance policy. As a result, one of the biggest injustices is when a patient dies or is severely injured due to the actions or inactions of a healthcare provider, yet there is no insurance to compensate them for their injuries. This often leaves patients without the ability to recover damages for their injuries.
When deciding to procure medical malpractice insurance, doctors and nurses balance legal requirements, their own interests, and their budgets. However, there is one key factor left out of this equation: The rights of a patient who is harmed by a healthcare provider’s negligence. Medical malpractice insurance laws do not put an injured patient’s needs first, so you should retain a Florida medical malpractice lawyer who will.
Overview of Florida Medical Malpractice Insurance Requirements
There is no true “Yes” or “No” answer regarding insurance because the details are somewhat convoluted. Florida’s statute on financial responsibility for medical professionals, outlined in Florida Statutes § 458.320, does require that:
- Physicians satisfy any judgment against them up to $100,000 in malpractice insurance.
- Doctors who see patients through hospital privileges have a minimum policy of $250,000.
However, the law does provide a loophole that allows a physician to skirt the insurance requirement by putting up their own secured assets to cover claims. A doctor may use an escrow account, an irrevocable letter of credit, or other assets allowed by the statute to satisfy the financial responsibility requirement.
These alternatives to malpractice insurance must still have the minimum coverage amounts required for policyholders. For other doctors who meet specific criteria described in the statute, they are not required to maintain any insurance at all.
What Medical Providers Need Insurance or Other Coverage?
Medical providers who want to maintain an active license must follow these rules about obtaining medical malpractice policy or equivalent coverage, and these parties include:
- Physicians, including general practitioners and specialists like surgeons, OB-GYNs, and cardiologists
- Advanced practice registered nurses (APRNs) and nurse practitioners
- Chiropractors
- Osteopathic doctors
- Dentists
Are There Exceptions to Florida Malpractice Regulations?
There are some notable exceptions to the insurance or financial responsibility requirements. These include:
- Licensed practitioners of state or federal agencies: These entities have different laws and regulations.
- Practitioners with expired licenses who no longer practice in the state of Florida: Should they reactivate their licenses, these parties may have additional regulations to follow.
- Practitioners with limited licenses and practices: Florida Statutes § 458.317 outlines limited licenses and eligibility for this type of practitioner. Our lawyers can review the status of the practitioner who caused your harm to see if they fall under this category.
- Those who only practice medicine as part of their educational duties at accredited schools or teaching hospitals: An attorney can see if this exception covers the negligent provider.
- Those with an active medical license but do not practice in Florida: Should this individual start practicing in the state, they may have to meet the insurance or financial standards.
There are a few more exceptions to these requirements, and a lawyer can let you know if they apply to the provider. Even if the doctor, nurse practitioner, or other medical professional is not required to have this insurance coverage, we can still potentially pursue damages on your behalf.
Legal Obstacles for Patients Injured By Medical Malpractice
When a physician carries traditional medical malpractice insurance to protect against claims, the insurance company will provide defense counsel for the doctor to represent them throughout the process. Before filing a lawsuit, the injured party must serve a formal notice to the doctor. The legal process is not easy, and there are additional requirements for filing a lawsuit, but many challenges are expected.
The legal landscape can be much more complicated when doctors use the fallback provision. You can still pursue the physician in court to seek monetary damages, and your award would be paid through the secured assets. However, you should note the following:
- Your damages may exceed the $100,000/$250,000 requirement. This means you would be pursuing the doctor’s personal assets. Many physicians anticipate this move, so they title assets in the name of a spouse or trust – or use some other strategy that enables them to protect their assets.
- You may have grounds to pursue a hospital that employs or has an independent contractor relationship with the doctor. A facility could be held liable for allowing the physician to practice without insurance.
What Kinds of Medical Malpractice Insurance Do Doctors Obtain?
There are two main types of medical malpractice coverage physicians can seek:
- Claims-Made: If a doctor faces a malpractice claim with a claims-made policy, they are covered if the insurer at the time of the incident is the insurer at the time of the claim’s court filing of the malpractice claim. Doctors can add an insurance tail policy to help cover them if they have a claim but switch malpractice insurers.
- Occurrence-Made: Occurrence-made claims cover doctors even if the doctor is no longer with the insurer at the time the case is filed. As long as the incident occurred while this policy covered the doctor, they can get coverage from this provider.
A malpractice lawyer can explain how these coverages could affect your case and your ability to recover compensation for medical negligence.
Contact a Florida Medical Malpractice Attorney for More Information
Medical malpractice insurance laws can be as complicated as the cases themselves. Here at Freidin Brown, P.A., we have over 45 years of experience handling these intricate and confusing claims and winning big for our clients. We’re dedicated to holding all negligent parties accountable and getting our clients the compensation they need and deserve.
To learn more about your rights and strategies for recovering the compensation you deserve, please contact the Florida medical malpractice lawyers at Freidin Brown, P.A. to schedule a free consultation at our offices.
