Does your malpractice insurance provider measure up?

Excerpted from page 50 of the Summer 2024 edition of AOA Focus. 

Malpractice insurance is a critical component of practicing optometry, but it can be difficult to decipher the fine print of a policy and determine the quality of an insurance provider’s coverage. 

AOA Focus talked with Kevin Johnson, program executive at AOAExcel®-endorsed business partner Lockton Affinity, to get some straightforward answers on what doctors of optometry should look for in their policy and how to make sure their malpractice insurance provider is providing the coverage they need. 

How does malpractice insurance protect doctors of optometry? 

Also known as professional liability insurance, malpractice insurance can help protect you and your practice from the stress of handling a claim alone. It covers litigation fees and losses, and it’s legally required for you to practice in most states. Malpractice insurance also can provide lost income protection and other benefits. 

Why do malpractice insurance rates vary so much from provider to provider? 

Not all malpractice insurance coverage provides the same level of protection and benefits, and, therefore, not all malpractice insurance coverage costs the same. It is important to look not only at price but also to consider factors such as scope of coverage, limit options and additional benefits. Coverage rates may also vary on a case-by-case basis because of individual risk and prior claims. 

What key factors should doctors consider when selecting an insurance provider? 

Make sure to read trusted reviews from industry sources and ask colleagues if they have any recommendations. Pay particular attention to an insurance provider’s industry expertise—a provider with experience working with doctors of optometry will know about your specific needs and will be able to provide better assistance. 

It is also important to look at a potential provider’s carrier partners. Insurance carriers issue the actual insurance policy, charge the premium and pay for losses in the event of a covered claim. The carrier bears the financial risk of issuing a policy, so it is important to make sure they are dependable and have a solid financial rating. 

What actions should a doctor take to prepare for a switch in malpractice insurance providers? 

Make sure to compare strength of coverage and price, including additional benefits and factors. Do your due diligence and research potential providers and carriers. If switching providers is the right choice, it is often easiest to do so at the time the current policy is set to renew. 

Remember to check whether any previous policy is a “claims made” or “occurrence” policy; if it is the former, tail coverage or an extended reporting period may be necessary for full protection. Finally, make sure to receive confirmation that the previous policy has been terminated. 

How might insurance needs change throughout a doctor’s career? 

Although malpractice insurance is typically required throughout your practice career, a doctor’s specific needs may change as their career develops and their scope of practice expands. In particular, opening a practice could expose an optometrist to a variety of additional risks. Practice owners should look into acquiring a comprehensive Business Owner’s Policy, a combined coverage package that helps with the costs and interruptions associated with fires, thefts, lawsuits and claims. Employee practice liability insurance, cyber protection and group malpractice policies also are important solutions for practice owners. 

What sets Lockton apart as a malpractice insurance provider? 

Lockton Affinity is one of the nation’s leading insurance administrators and is the only insurance company endorsed by the AOA. Lockton provides best-in-class coverage that was developed with hands-on involvement by doctors of optometry to ensure we offer the right policies and benefits. The coverage Lockton offers is portable—meaning it goes with you throughout your career—and will automatically expand with your state’s scope of practice. In addition, Lockton has extensive experience in the optometry industry and knows the coverage, limits and benefits doctors need. 

AOA member benefits 

AOA members can receive a complimentary policy review from Lockton Affinity to check for exclusions and ensure your current policy provides adequate coverage. If you think the time is right to switch your malpractice provider, you can also receive an instant quote on coverage.