Why loss mitigation coverage is important in a medical indemnity insurance plan

Among the many considerations for choosing the right medical indemnity insurance plan, a critical, but often overlooked, one is ‘Loss mitigation’ coverage. It is not entirely surprising, because most insurers in Malaysia don’t offer it and focus on ‘Litigation coverage’ only*.

?To appreciate the business imperative of having loss mitigation coverage, it is important to understand the fundamental differences between the two, that are particularly centred on the scope (“what”) of coverage and applicability (“when”).

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1.??? Litigation Only Coverage: Litigation-only policies typically kick in when a malpractice claim reaches the legal battlefield. They provide financial assistance for legal defense, settlements, and damages awarded to the claimant.

?While coverage of litigation expenses is invaluable, reliance on such an insurance plan can prove to be both strategically inappropriate and financially inadequate, considering the typical ‘lifecycle’ of indemnity cases.

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2.?? ?Loss Mitigation Coverage: Policies that offer this component provide financial protection to doctors against various expenses incurred in preventing or mitigating losses from disputes and claims from their patients. It can help prevent or reduce the severity of claims.

?This encourages and enables the medical fraternity to adopt proactive steps to identify, address, and prevent risks before they escalate, such as risk management programs, educational initiatives, and collaborative efforts to reduce conflicts with patients, thereby nipping potentially existential problems in the bud.

?The table below summarizes the typical features of loss mitigation coverage (do check with your insurance provider as features may vary with different companies):

*Doctor Shield is among the few providers in Malaysia, if not the only one, to offer loss mitigation coverage to doctors.

We invite doctors in Malaysia to look beyond mere indemnity protection and make a proactive investment for the long-term success of their practice.? Check out our FAQs section or contact us now to address any questions on buying medical malpractice insurance. Or simply, get a quote and buy the insurance online.