Malpractice Insurance FAQs

Malpractice Insurance FAQs

• Why is True Consent to Settle such an important feature of NCMIC’s Malpractice Insurance Plan?

  Some policies have clauses that limit a doctor’s decision to settle or not. NCMIC has a true consent to settle feature, which means in the event of a malpractice allegation, NCMIC will not settle a claim without your authorization. Instead, we will support you every step of the way. If you decide you want to pursue the case, you’ll have your day in court. Consent to Settle is not allowed by Maryland.

• Does NCMIC require that my patients sign an arbitration agreement?

  No. NCMIC does not believe arbitration agreements are in the best interest of our policyholders and their patients. Arbitration means you give up the option to go to court, you’re more likely to be found at least partially at fault, and asking your patients to sign one may strain your relationship with them.

• How does a claims-made policy work?

  A claims-made policy provides coverage for claims of alleged incidents that both occur and are reported on or after the retroactive date and before the policy terminates. (The retroactive date is the first day claims-made coverage begins.) Claims-made coverage is triggered when:

  1. The alleged incident occurs on or after the policy’s retroactive date and before the policy terminates, and;
  2. A written claim is reported during the current policy period or during the basic reporting extension period 30 days following termination of your policy.

  Depending on the retroactive date, a claims-made policy may increase in cost over the first five years until it reaches the mature rate.

• What is tail coverage?

  Under NCMIC’s Policy, you have the option to purchase an Extended Reporting Endorsement or "Tail Coverage." This coverage allows claims to be reported for an unlimited time, as long as the alleged incident occurred on or after the retroactive date but before termination of the policy.

  Buying tail coverage is a one-time purchase, does not expire and cannot be cancelled by you or NCMIC. In most cases, tail coverage through NCMIC must be purchased within 60 days after your claims-made policy terminates and may not be available if your policy was cancelled due to non-payment of premium. NCMIC provides tail coverage at no additional charge after 10 years of continuous coverage.

• What is professional entity coverage and why do I need it?

  Some doctors may think by creating a professional entity, their practice is protected in the case of a malpractice allegation. This isn't necessarily true. If you have formed an LLC, PC, S Corp, C Corp, or other type of legal entity, chances are, if you are named in a malpractice lawsuit, your entity will also be named. You can protect your entity by adding it to your NCMIC Malpractice Insurance Plan as a named insured. Both separate and shared limits for entity coverage (also known as corporation coverage) are available:

  Shared Coverage
  You and your entity will share in the limits of liability in your policy. For example, the total benefits available for any claim naming both you and your entity would be the limit amount listed on your declarations page (such as $1,000,000 per incident/$3,000,000 total in a policy year). This coverage is available for no additional charge.

  Separate Coverage
  Your entity is protected by a separate set of limits than you are. For example, if you have $1,000,000/$3,000,000 coverage with separate limits for your entity, your own benefit amount for indemnity coverage would be $1,000,000 for each incident and $3,000,000 total in any policy year. Your professional entity would also have $1,000,000 indemnity coverage for each incident and $3,000,000 total in a policy year. This coverage is available for an additional premium.

  Note: Entity coverage does not provide personal protection for other licensed providers in the office so they must maintain their own coverage with limits equal to or greater than yours.*

  *State exceptions do apply for DCs in KS, IN and CT. Please contact NCMIC 1-800-247-8043 for additional information.

• If I already have my entity covered under a general liability policy, do I still need to add it to my malpractice insurance policy?

  Yes. A general liability policy does not cover malpractice lawsuits. In order for your entity to be covered if it is named in a malpractice lawsuit, it needs to be listed on your malpractice insurance policy.

• What if I move to a new state?

  Contact NCMIC right away so we can help determine any changes that may need to be made to your policy, as well as if your rates will be affected.

• What limits of liability should I choose?

  This is an important decision to protect your patients, practice and assets. NCMIC offers a variety of policy limit options. Before you decide, consider the following:

  • How much money may be needed by a patient who was inadvertently injured as a result of treatment, as well as enough coverage to protect your other patients, your practice and your financial future.
  • Lower policy limits can affect the outcome of a case. Lawsuits are often a process of negotiation and compromise, and if your policy limits are inadequate to negotiate a settlement, it can become a barrier to reaching a successful outcome. Low policy limits can also expose your personal assets during a malpractice suit.
  • The requirements of any third-party payer networks in which you participate, state statutes and your employer.
  • Talk with your accountant, lawyer or other business advisor to help you determine how much coverage you need. Then, review your coverage each year to make sure your protection is still adequate as your practice changes and to keep up with inflation.

• How can I obtain a verification of coverage, claims history report, or loss run report?

  Fax NCMIC a signed and dated request. Be sure to specify the type of document you need and provide the address, fax number, or email address where you would like the document sent. Our fax number is 800-996-2642.

Chiropractic Malpractice Insurance FAQs

• What is the difference between claims-made and occurrence coverage?

  NCMIC offers both an occurrence and claims-made policy. There is no difference in the kind of injury or damage covered; the difference is how and when coverage is triggered.

  Occurrence – Provides coverage for claims of alleged incidents that occur while your policy is active. The claim can be reported at any time in the future, even if the policy has cancelled. Coverage is available at the limits of liability, terms and conditions in effect at the time of the alleged incident.

  Claims-Made – Provides coverage for claims of alleged incidents that both occur and are reported on or after the retroactive date and before the policy terminates. (The retroactive date is the first day claims-made coverage begins.)

  Claims-made coverage is triggered when:

  1. The alleged incident occurs on or after the policy's retroactive date and before the policy terminates, and
  2. A written claim is reported during the current policy period or during the basic reporting extension period 30-60 days following termination of your policy.

• Can I switch from claims-made to occurrence or vice-versa?

  Yes. There are several things to keep in mind, depending on the situation:

  Switching from a claims-made policy to an occurrence policy
  In this case, you may not have coverage for claims reported after the termination date of your claims-made policy. To be protected, you'd need to purchase an extended reporting period endorsement (tail coverage).

  Switching from an occurrence policy to a claims-made policy
  To avoid gaps, it is important to make sure the retroactive date of your claims-made policy is no later than the termination date of your occurrence policy. Then, when you end your claims-made policy, you'll need to obtain tail coverage to protect yourself against claims which may be reported after your coverage ends.

  Switching to a claims-made policy with NCMIC from another claims-made policy with another insurance company
  You may want to request NCMIC coverage dating back to your original claims-made policy retroactive date. That way, you'll have protection for claims that may eventually be filed as a result of incidents that happened prior to moving to NCMIC. Contact us before you terminate your other coverage so we can help you avoid any gaps in coverage.

• What is MD/DO Exposure under Professional Entity Coverage?

  This provides coverage if the entity is named in a lawsuit due to the actions of an MD or DO. Both shared and separate limit options are available for an additional charge. You may want to consider this type of coverage if you have another type of provider in your practice.

  Note: Entity coverage does not provide personal protection for other licensed providers in the office

• How long does it take to get coverage?

  Once your Request for Coverage is received by NCMIC, it typically takes only 5-7 business days to process your request as long as we have all the information we need. If we need additional information, we will contact you.

  Upon approval of your application, your policy effective date can be as early as the day your completed application is received by NCMIC. If you choose to fax or email your application, the earliest effective date will be the day after it is received.

• If I am practicing in more than one state, do I need multiple policies?

  No. Our policy provides coverage for services that you provide in any state in which you hold an active chiropractic license. For rating purposes, the state and address where you do the majority of your practicing should be the one listed on your policy.

• Do I need to list all the locations where I practice on my Chiropractic Malpractice policy?

  No. NCMIC only requires the address where you do the majority of your practicing to be listed on your policy.

• If I am the team chiropractor for a sports organization, can I travel with them and treat in other states?

  Before you travel with the team to another state in which you are not licensed, please call 800-247-8043  so we can help you determine the reach of your coverage.

• Does NCMIC offer Chiropractic Malpractice insurance premium discounts?

  Yes. NCMIC offers discounts to DCs who are newly licensed, maintain a claims-free status, attend NCMIC risk management seminars, and more. Visit our premium discounts page for more information, or call our Client Service Representatives at 800-769-2000, ext. 3555 to see which discounts you are eligible for.

• I pay the malpractice insurance premium for my associate. If he or she leaves my practice, will I get a refund?

  To be eligible to receive the refund in this situation, you must be listed as the delegation holder of certain policy rights. As the delegation holder, you would receive any dividend checks, be able to cancel the policy and get a refund, or remove your name and get a refund when the employment agreement terminates. To be listed as the delegation holder, complete and return this form. Both you and your associate will need to sign the form.

• What is a certificate holder and why would a company request to be one on my policy?

  Certificate holders automatically receive certain information regarding your policy, but they are not actually covered under the policy, nor can they transact any changes to the policy. For example, it's common for managed care organizations to request being listed as a certificate holder on a DCs policy. This allows them to receive a copy of the Certificate of Insurance at the time of policy renewal, cancellation, reinstatement or a limit change. Occasionally, an employer may request to be a certificate holder to verify coverage as well. There is no charge to add a certificate holder.

• Can more than one DC be covered by my malpractice policy?

  It depends on your policy. Typically, each Doctor of Chiropractic must have his or her own individual coverage. If you're working with another DC on a locum tenens basis or bringing an extern into your practice, NCMIC offers coverage options to handle these specific situations. However, our group malpractice policy will cover practices that are chiropractic-owned and have more than five DCs.

• Are my Chiropractic Assistants and Massage Therapists covered by my malpractice policy?

  As long as they are employees and under the supervision of a licensed chiropractor, NCMIC's Malpractice Insurance Plan provides coverage for Chiropractic Assistants (whether registered, certified, licensed or unlicensed), Massage Therapists (licensed or unlicensed), RNs and LPNs, as well as any unlicensed ancillary personnel.

  These employees would share in the limit of liability listed on your declarations page. In Connecticut and Kansas, an additional application is required and only separate limits are available for an additional charge.

Naturopath Malpractice Insurance FAQs

• When will my coverage become effective?

  If your application is mailed, coverage can be effective the day it is received, as long as the entire application is complete. If you fax or email your application, the earliest effective date will be the day after it is received.

• Do I need to list all the locations where I practice on my Naturopath Malpractice policy?

  Yes. NCMIC must approve each location where you are practicing. When applying for coverage, please provide a list of all practice locations and submit it with your application. If you are already insured with NCMIC, you may add additional locations by filling out a request for address change form for each location and indicating on the form that it is an additional location. You can find the form here.

• Does NCMIC offer Naturopath Malpractice insurance premium discounts?

  Yes. NCMIC offers discounts to NDs who are newly licensed, maintain a claims-free status, and those who practice part-time. Visit our premium discounts page for more information, or call our Client Service Representatives at 800-769-2000, ext. 3555 to see which discounts you are eligible for. Claims-free discounts may differ in California.