Vicarious Liability

Vicarious liability (VL) insurance is essential for any healthcare practice that employs or contracts with medical professionals who are not named on your medical malpractice insurance policy. If your practice relies on providers maintaining separate med mal coverage, you should strongly consider vicarious liability insurance. This coverage ensures that your policy responds if you (or your entity) are named on behalf of a provider who maintains solo coverage.

Vicarious liability in healthcare occurs when a provider or practice is held legally responsible for the actions or omissions of another person, such as an employee or an independent contractor, even if the provider or practice was not directly involved in the incident. This can include other physicians, nurses, technicians, and medical staff who work under you (or your entity) and carry their own medical malpractice coverage. It can also apply to providers sharing your office space with no relation to your practice at all. 

Without vicarious liability medical malpractice coverage, your practice could be at significant financial risk. If an incident occurs and a claim is filed against an employee or contractor with their own medical malpractice coverage, you (or your entity) could be held liable for damages even if you were not directly involved. Your carrier will likely decline any claims involving the other provider unless you have vicarious liability coverage specifically added to your policy.

Forgoing vicarious liability insurance could result in substantial out-of-pocket expenses, legal fees, and potential settlements or judgments, which could be financially devastating for your practice. With healthcare practices relying more and more on independent contractors and temporary staff, vicarious liability in nursing and other settings creates an increased risk of being implicated in a lawsuit due to another’s actions.

Good news! This gap is easy to fix. You can add VL coverage to your existing medical malpractice insurance policy often for a small percentage of your overall premium. Your medical malpractice insurance carrier will usually require some background information on the outside provider, but this is typically a quick add for small practices. 

Med mal insurance can be as clear as mud and as fun as filing your taxes. But that’s why we’re here!

Let us take care of the VL messiness and ensure your practice is safely protected.