How Does Medical Malpractice Insurance Work in Florida?

Many people do not know that although Florida law requires doctors to have medical malpractice insurance, there are multiple loopholes that allow medical providers to get out of having an actual insurance policy.  As a result, one of the biggest injustices is when a patient dies or is severely injured due to the actions or inactions of a health care provider, yet there is no insurance to compensate them for their injuries.  This often leaves patients without the ability to recover damages for their injuries.

When deciding to procure med mal insurance, doctors and nurses balance legal requirements, their own interests, and their budgets. But there is one key factor left out of this equation: The rights of a patient who is harmed by a health care provider’s negligence. Med mal insurance laws do not put an injured patient’s needs first, so you will need a Miami medical malpractice lawyer that will. You might also benefit from some background information on how med mal insurance works in Florida.

Overview of Florida Med Mal Insurance Requirements: There is no true “Yes” or “No” answer regarding insurance, because the details are somewhat convoluted. Florida’s statute on financial responsibility for medical professionals does require that physicians satisfy any judgment against them up to $100,000 in malpractice insurance; the minimum is $250,000 for doctors who see patients through hospital privileges.

However, the law does provide a loophole which allows a physician to skirt the insurance requirement by putting up their own secured assets to cover claims. To satisfy the financial responsibility requirement, a doctor may use an escrow account, an irrevocable letter of credit, or other assets allowed by the statute.  For other doctors who meet certain criteria enumerated in the statute, they are not required to maintain any insurance at all. 

Legal Obstacles for Injured Patients: When a physician carries traditional med mal insurance to protect against claims, the insurance company will provide defense counsel for the doctor to represent them throughout the process.  Before filing a lawsuit, a formal notice with specific requirements must be served on the doctor.  The legal process is not easy, and there are additional requirements for filing a lawsuit, but many challenges are expected.

The legal landscape can be much more complicated when doctors use the fallback provision. You can still pursue the physician in court to seek monetary damages, and your award would be paid through the secured assets. However, you should note the following:

• It is possible that your damages will exceed the $100,000/$250,000 requirement, which means you would try to enforce your judgment against the doctor’s personal assets. Many physicians anticipate this move, so they title assets in the name of a spouse or trust – or some other strategy that enables them to protect property.
• You may have grounds to pursue a hospital that employs or has an independent contractor relationship with the doctor. A facility could be held liable for allowing the physician to practice without insurance.

Contact a Florida Medical Malpractice Attorney for More Information 

From this description, you can see that the laws applicable to med mal insurance can be as complicated as the cases themselves. To learn more about your rights and strategies for recovering the compensation you deserve, please contact the Miami medical malpractice lawyers at Freidin Brown, P.A. to schedule a free consultation at our offices.