Medical Directors have more liability exposure than one might think and need to be covered by medical professional liability insurance. Medical Directors wear many hats—credentialing, supervising, overseeing compliance, establishing patient protocols, directing patient care, conducting chart review and other administrative functions. They work in a variety of settings: nursing homes, hospitals, medical spas, weight loss clinics, surgery centers, etc. Often, they receive a stipend. The position is prestigious. His responsibilities, however, are usually excluded on a standard medical malpractice insurance policy. Their potential claims can come from disgruntled patients, employees, and even employers.
Since most Medical Directors do not have direct patient contact, the exposure is more from errors and omissions rather than medical care negligence. Because of this difference, it is imperative that you be covered by a medical professional liability policy designed especially for Medical Directors. Ordinarily, companies will cover the patient services but exclude the directorship services.
All policies vary, but an example of the Medical Directorship exclusion is as follows:
“Liability arising from your activities as a medical director, proprietor, superintendent, executive officer, director, partner, trustee, agent, shareholder, manager, or employee of any enterprise not named under this Policy.”
It is best to check with a qualified medical malpractice insurance agent regarding your specific situation. He or she will be able to direct you, so that there are neither gaps nor overlaps in your professional liability coverage.
