While there is no easy answer to the question “how much insurance is enough insurance”, we recommend periodically reviewing your hospital’s current coverage, risk and risk tolerance to help you reach your answer. The following information is intended to assist you in analyzing your insurance needs and a number of the key factors worth considering as you determine to what degree your hospital is capable of bearing the risk and/or recovering from an unfavorable judgment, should there be one.
- Level of risk affiliated with procedures offered and frequency and severity of claims.
- Does your facility perform procedures which have a higher likelihood of resulting in a high damage award should there be a claim?
- Are emergency care services provided at your facility?
Personal financial responsibilities
- Is there cushion in your hospital’s operating budget to cover claims related expenses without impacting the day to day operations for any period of time?
- For all appropriate parties, are there E&O policies in effect should the parties be individually named?
- Population density.
- Provide care for high exposure groups such as pro-athletes, etc.?
Ability to handle stress
- Extensive media coverage on jury awards?
- Active trial lawyers association or Plaintiffs' Bar?
- What is your “sleep factor”? – Do you worry excessively; has your hospital experienced a claim/trial previously?
- Impact to reputation of the healthcare facility?
- Board of Directors, investors, and family support.
Services available through insurance provider
- What does the current legislative landscape look like?
- Are there any pending changes in the law which would impact the tort environment?
- Is your facility qualified for protection under the Kansas Tort Claims Act?
Cost of the coverage
- Loss Prevention education and resources;
- Litigation support programs;
- Claims philosophy and services; and
- Advocacy efforts on the behalf of healthcare professionals.
- Affordability of additional insurance premiums.
- Impact of malpractice settlements on future premiums.