Are You Covered for New Procedures & Medications?
Medical malpractice insurance policies are structured around the known risks of the procedures a healthcare provider routinely performs. Many providers assume that their existing med mal coverage will automatically extend to new offerings, but that’s not always the case. When adding new treatments to your practice, you’re introducing a new level of exposure. Doing so without proper coverage can open you up to significant risk. Keeping your med mal insurance coverage up to date is critical to mitigate that risk and safeguard your practice. That’s why it’s crucial to notify us whenever you anticipate adding new services or treatments.
What qualifies as a new procedure?
A new procedure within your practice can include:
Innovative medical devices and technologies (e.g., laser surgeries and treatments, robotic-assisted procedures, telemedicine)
New medications (e.g., ketamine, recently approved pharmaceuticals like Ozempic and Wegovy [semaglutide], non-FDA approved medications)
Emerging treatment methodologies (e.g., gene therapy, regenerative medicine)
Essentially, a new treatment is anything that you haven’t previously performed, is considered cutting-edge in the medical field, or presents unique risks that weren’t part of your original application for coverage. While innovative therapies are becoming more mainstream in the practice of medicine, it doesn’t mean that med mal coverage for new procedures is also a given with slow adapting insurance companies.
Med mal insurance for new technology, treatments, or procedures
The healthcare industry is constantly changing, and staying current with the latest advancements is essential for delivering top-notch care. However, expanding your offerings requires that your malpractice coverage also evolves. Insurers need to evaluate how these offerings will be implemented in your practice and the potential risks they bring.
To ensure you’re adequately covered when considering new services, there are certain steps healthcare providers should take:
1. Notify your insurance broker early
It’s essential to notify us before you begin offering any new services. Informing us early allows you to ensure that the new procedures fall within the scope of your current policy. If not, we’ll work with you to find the appropriate solution to avoid gaps in coverage that could leave you vulnerable to liability. We can help communicate with your carrier, provide insights on what’s needed for coverage, and explore alternative options if your current carrier declines coverage.
2. Prepare for common carrier questions
When evaluating whether to extend med mal coverage for new procedures, your insurance carrier’s underwriting team will typically ask several key questions:
When will the new services be offered?
Who will be performing the procedures?
What is the provider's level of training and expertise in the new treatment?
Are informed consent procedures and documents in place to explain the risks to patients?
Providing clear answers to these questions will streamline the process of confirming coverage. Carriers also often require copies of training certificates and informed consent forms to make coverage decisions. Making sure informed consent documents are up to date and tailored to the new procedure and having this documentation ready in advance can speed up the process of updating your coverage, ensuring you're protected from the first day you offer the new treatment.
3. Budget for additional premium
With new treatments comes additional risk, and that often means an increase in your insurance premium. Depending on the nature of the procedure and the carrier’s appetite for that risk, the cost of extending coverage could vary. It’s a good idea to discuss this upfront with us, so we can request ballpark estimates from the carrier. This way, you can plan for the financial impact and factor any necessary premium increases into your budget.
4. Consider the E&S market if necessary
In some cases, a carrier may determine a particular treatment or procedure is outside its risk tolerance. This doesn’t mean you’re out of options. We can explore the excess & surplus (E&S) lines insurance market to find specialized carriers willing to provide med mal coverage for new procedures that are high-risk or cutting-edge. This could mean transitioning your existing coverage to an E&S policy that includes both current and new offerings in one comprehensive solution or obtaining a standalone policy specifically for the new service. While a separate policy certainly means additional premium for the new procedure, it offers a way to ensure you’re protected.
Does malpractice insurance cover new treatments? Don’t assume it does.
Malpractice insurance is designed to protect healthcare providers from liability claims resulting from errors or negligence in patient care, but this protection might not automatically extend to new treatments or procedures that fall outside the scope of your current practice profile. With the rise of new and trendy medications and technologies, it’s more important than ever to keep your med mal coverage aligned with the services you offer.
If you’re thinking about adopting new procedures, don’t wait until it’s too late. To avoid unexpected denials of coverage, ask us to confirm coverage before offering new services. Staying proactive ensures that both you and your patients are protected, and you’ll have peace of mind knowing that you’re covered for whatever the future brings.
Even if you’re not currently considering new procedures, it’s always wise to review your med mal coverage regularly to ensure it keeps pace with industry trends and evolving technologies. By working closely with us, you can navigate the evolving healthcare landscape with confidence, ensuring that your practice remains relevant, profitable, and protected.