New Jersey Medical Malpractice Insurance

Any medical professional can make a mistake, but the wrong mistake can be devastating to your career. In 2020 alone, 368 medical malpractice cases were filed in the State of New Jersey. That's why New Jersey health care professionals need to be protected with medical malpractice insurance.

In New Jersey, medical malpractice lawsuits must be filed within two years from the date of the injury, but you'll want protection long before that time comes. Fortunately, a New Jersey independent insurance agent can help get you set up with medical malpractice coverage before you need it. 

What Is New Jersey Medical Malpractice Insurance?

Medical malpractice insurance helps pay for any legal costs associated with a medical malpractice lawsuit. These lawsuits are typically filed when a patient believes that there's been act of negligence or substandard level of care from their health care provider. 

Negligence can result in complications, injury or even death. A patient can sue the doctor that performed the procedure, as well as other healthcare professionals involved, and even the hospital or facility where the procedure took place.

Top 5 medical malpractice patient events in New Jersey

What Does Medical Malpractice Insurance Cover in New Jersey?

Should you be sued for negligence or similar, your medical malpractice insurance will cover fees associated with the lawsuit. This includes: 

• Settlement costs
• Court fees
• Legal defense
• Damages if you're found guilty

According to John Hopkins, medical errors are the third leading cause of medical deaths. The most common errors and medical malpractice claims are related to:

• Childbirth injuries
• Failure to treat an injury or illness
• Misdiagnosis or delayed diagnosis
• Prescription drug errors
• Surgical or procedural errors

If a current or past patient claims you caused them physical, emotional, or financial harm, your New Jersey independent insurance agent can help you use your medical malpractice coverage to pay for the lawsuit.

What Doesn't Malpractice Insurance Cover in New Jersey?

According to insurance expert Paul Martin, medical malpractice insurance will not cover any claims related to sexual misconduct, criminal acts, or the alteration of medical records.

Your coverage will also depend on the type of medical malpractice insurance you purchase. The two main types are claims-made policies and occurrence policies. They provide different benefits and coverage.

• Claims-made policy: Only provides coverage if the policy was in effect when the event took place as well as when the lawsuit was filed. 
• Occurrence policy: Covers any claim for an event that took place during the period of coverage, even if the lawsuit is brought outside the period of coverage.

Is Medical Malpractice Insurance Required in New Jersey?

New Jersey is one of seven states that requires all practicing medical professionals to carry a minimum amount of medical malpractice coverage.  Some healthcare facilities even require visiting doctors to carry a policy.

However, professionals in higher-risk specialties are encouraged to maintain a higher amount than the minimum.

The state also requires that renewal coverage include the premium retroactive date. If it does not, then tail coverage is required, or doctors must provide a letter of credit for at least $5,000.

How Much Is Medical Malpractice Insurance in New Jersey?

Unfortunately, New Jersey has a bad history with medical malpractice claims. As a result, it has become one of the more costly states in which to purchase coverage in. In addition, insurance companies will look at the risk of the healthcare professional to determine premium prices.

Top 5 most expensive specialties for malpractice coverage in New Jersey

What Is Tail Coverage Medical Malpractice Insurance?

When you purchase medical malpractice insurance, you'll choose between an occurrence policy and a claims-made policy. 

On a claims-made policy, there is a retroactive date. This is the start date of the policy. The malpractice event must take place after the retroactive date, and the claim has to be made in the current year, for insurance to cover the claim. However, a patient can choose to sue for malpractice outside this time frame.

"This means once you retire you lose your insurance and you can still be sued," said Martin. "What tail coverage does is provide coverage for this extended reporting period. It might be for two, five, or ten years, but it makes it so someone cannot come back and sue you for something you did a long time ago."

How to Choose Medical Malpractice Insurance in New Jersey

The easiest way to obtain medical malpractice insurance is through a New Jersey independent insurance agent. Not only are they experts in the insurance industry, but they also know the top writers of medical malpractice insurance in the state. 

New Jersey residents will have a variety of carriers to choose from, but the major insurers for medical malpractice insurance in the state are: 

• MedPro
• Coverys
• MD Adavantage
• ProAssurance

These insurers are known for their ability to defend malpractice claims and offer affordable but high-quality coverage. 

Why Work with a New Jersey Independent Insurance Agent?

Since New Jersey requires medical malpractice insurance, there's no question that medical professionals need to get it. However, finding an affordable policy that fits your needs can be difficult. 

New Jersey independent insurance agents will shop multiple carriers and provide you with a handful of quotes and policies to choose from. They'll discuss claims-made vs. occurrence policies and get you set up with the right policy for you long before you need it.