Do You Need a Second Malpractice Insurance Policy?
Healthcare professionals today are increasingly diversifying their careers. Whether it's picking up telehealth shifts, offering aesthetic services on weekends, consulting for medical device companies, or volunteering at free clinics, side work has become the norm. But with these opportunities comes a critical question: does your employer-provided malpractice insurance cover these activities?
The answer isn't always straightforward, and the consequences of being wrong can be financially devastating. Many healthcare providers assume their primary employer's policy will protect them wherever they practice medicine. Unfortunately, this assumption often leads to risky coverage gaps that won’t become apparent until a claim is filed.
Secondary malpractice insurance, also known as supplemental coverage, exists specifically to fill these gaps. Understanding when you need it, how to identify coverage limitations, and what to look for in a supplemental policy can protect both your financial future and your ability to continue practicing medicine.
Do I Need a Second Med Mal Policy?
Several common scenarios almost always require separate coverage. If you're moonlighting at another healthcare facility, the host organization may provide coverage, but this isn't guaranteed. Many facilities require contractors and part-time providers to carry their own insurance.
Telehealth work represents a particularly complex area. While some employer policies extend coverage to approved telehealth activities, working independently for telehealth companies or providing consultations through third-party platforms typically falls outside your primary coverage. Geographic limitations also matter: if you're providing telehealth services in states where your employer doesn't operate, you likely aren’t covered.
Aesthetic medicine and elective procedures present another high-risk area. Activities like Botox injections, dermal fillers, or cosmetic procedures often require coverage to be specifically extended. These procedures carry different risk profiles than traditional medical care and may be explicitly excluded from standard policies.
Consulting work, whether for pharmaceutical companies, medical device manufacturers, or legal cases, typically requires separate coverage. Providing expert witness testimony or acting as a medical director, in particular, carry unique liability risks that standard medical malpractice policies don't address.
When Do I Need Supplemental Med Mal Coverage?
Beyond specific activities, certain employment situations create coverage gaps that supplemental policies can address. If you're between jobs, your employer-provided coverage typically ends with your employment, even though claims can be filed years after an incident occurs. Maintaining continuous individual coverage ensures you're protected during transition periods.
If you work part-time for multiple organizations, each employer's policy may assume the other provides primary coverage, potentially leaving you without adequate protection. This is particularly common among locum tenens physicians, traveling nurses, and providers who split time between different healthcare systems.
Some providers need secondary malpractice insurance to increase their liability limits, also known as excess coverage in this case. While employer-provided policies typically offer adequate coverage for most situations, high-risk specialties or providers with significant personal assets may need additional protection that kicks in when primary limits are exhausted.
Additional coverages may be included in a med mal policy, depending on the carrier. For example, licensing board actions represent another area where supplemental coverage proves valuable. While some employer policies include licensing board defense, others don't. Since licensing board complaints can arise from incidents unrelated to your primary employment, having independent coverage is crucial.
What to Look for in a Supplemental Malpractice Insurance Policy
Choosing the right supplemental medical malpractice insurance means matching your policy to your real-world practice. Here’s what healthcare providers should consider:
Geographic Coverage: If you work across multiple states—especially in telehealth—make sure your policy includes multistate or nationwide coverage. Not all policies extend across state lines.
Scope of Services: Your policy should explicitly cover telehealth, aesthetic procedures (like Botox or dermal fillers), and any consulting work you do. Many base policies exclude elective or cosmetic services.
Coverage Limits: Consider your personal asset exposure and risk profile. Providers in high-risk specialties may need excess malpractice coverage to protect beyond the limits of an employer-provided plan.
Claims Handling & Legal Defense: Look for insurers with strong reputations for defending claims and a financial strength rating of A or better from AM Best. Ideally, choose a policy with "defense outside the limits" coverage—so your legal costs don’t reduce your total protection.
Whether you're a physician, nurse practitioner, or healthcare consultant, choosing the right secondary malpractice insurance ensures you're fully protected across all aspects of your work.
When in doubt, consult with an insurance broker who specializes in healthcare professional liability to ensure you're getting appropriate protection for your specific situation. We’ll start by conducting a thorough review of your current employer-provided coverage and document all your professional activities. Get in touch today.