Medical Malpractice Excess Layer

Medical Malpractice Excess Layers can be vitally important in structuring the appropriate medical liability requirements for your clients. In certain circumstances the limits of indemnity that are offered by a primary insurer may not meet the requirements of certain contractual or regulatory criteria.

In other scenario’s, you may feel that your client could benefit from a higher limit of indemnity e.g. for a distressed doctor that has only been provided with the minimum primary limit required by the Canadian Medical Protective Association (CMPA).

Excess Layer policies can contain numerous layers that form an accumulative limit of indemnity made up of multiple insurers that are responsible for a set limit, sitting on top of various other layers.

What are the basic’s you need to request from the insured:

  1. The primary layer policy and wordings.
  2. The contract or regulatory requirements for an increased limit.
  3. Excess layer proposal form.

What you need to discuss with your client:

  1. The terms and conditions on the excess layer (wordings may not follow primary policy).
  2. Structuring of excess policy – is there any drop down.
  3. How the excess layers respond to a claim.
  4. Retroactive dates – if a new excess layer is formed mid-term or for a policy that has retroactive exposure.

As a specialist Lloyd’s Broker, Servca have an unrivaled access to the Healthcare market offering a ‘whole of market’ review. Our market relationships allow us to structure excess layer policies that are often declined due to underwriter appetite.

If you need any help with placing excess layers (complex or standard), why not have a chat with our specialist healthcare team who are ready to provide you with advice and value.

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