Medical Director Insurance

Medical Director Insurance

Many physicians assume medical director positions in their primary practice or long-term care facilities. This exposure (administrative liability), however, is typically excluded from a medical professional liability policy. Because the medical director establishes practice protocols and is involved in credentialing, the establishment of protocols and the hiring/firing of employees are exposures that are not traditionally covered under a medical malpractice insurance policy. Additionally, the medical director may be exposed to claims from potentially disgruntled patients and employees.

Why is Medical Director coverage needed?

  • Protection of Assets: The primary role of insurance coverage (both medical malpractice insurance and administrative liability coverage) is to protect physicians against financial harm associated with unexpected liability arising out of their work. Deciding to go without insurance coverage can place you and your practice or facility in a position of having to use your assets to fund settlements, judgments, and defense costs. Relying on the facility to adequately insure your activities as medical director may not achieve the type or amount of coverage you may require to adequately protect your assets.
  • Uninterrupted Coverage: A physician-owned medical director insurance policy is portable. In the event you change or add facilities, the coverage remains intact. Gaps in coverage could occur if you do not own the policy and are not offered the opportunity to purchase tail or extended reporting coverage from a facility when you leave the position. This allows portability and flexibility and can provide coverage for all facilities where you operate as a medical director. 

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To prevent uncovered exposures, medical directors should clearly disclose their position to their medical professional liability insurance carrier so options for coverage can be provided. For more information on options available for your medical director exposure through Elatas Risk Partners, contact your local agent today.