Medical Malpractice Insurance: What Patients and Lawyers Should Know

Understanding Medical Malpractice Insurance

Behind every hospital and physician is an insurance policy designed to protect them from lawsuits.

Medical malpractice insurance covers doctors, nurses, and healthcare facilities when a patient files a malpractice claim.

But for injured patients, this same insurance company often becomes the biggest obstacle to justice.

Insurers are in business to minimize payouts, not to make victims whole.

That’s why it’s critical to have an experienced medical malpractice lawyer who knows how these policies work, who they protect, and how to negotiate fair compensation.

What Does Medical Malpractice Insurance Cover?

For healthcare professionals, malpractice insurance typically pays for:

• Defense costs — attorneys and experts hired to fight the claim
• Settlement or verdict payments — compensation owed to injured patients
• Court fees and administrative expenses

Most Georgia hospitals and physicians are required to maintain this coverage, but policy limits can vary widely—from $250,000 to several million dollars.

When a provider’s policy limit is low, insurers may pressure victims to settle quickly.

At Finch McCranie LLP, we analyze every policy involved so you know exactly what funds are available to cover your losses.

Who Pays in a Medical Malpractice Lawsuit?

When a medical malpractice lawsuit is filed, the insurance company steps in to defend the doctor or hospital.

It pays for the defense attorneys, expert witnesses, and—if liability is proven—the settlement or verdict amount up to the policy limit.

However, insurers often try to:

• Deny that malpractice occurred
• Shift blame to another provider
• Offer low settlements to avoid trial

Our medical malpractice attorneys have spent decades negotiating directly with insurance carriers. We understand their tactics and know how to overcome them.

The Two Main Types of Medical Malpractice Insurance 1. Claims-Made Policy

Covers incidents only if the policy was active when the incident occurred and when the claim is filed.

If a doctor switches insurers and you file later, that insurer may deny coverage—creating complex legal issues your attorney must navigate.

2. Occurrence Policy

Covers any incident that happened while the policy was active, even if the lawsuit is filed years later.

Understanding which type of policy applies helps determine who is financially responsible for your injury.

How Medical Malpractice Insurance Affects Victims

From a patient’s perspective, these insurance companies play a key role in how—and how much—compensation you receive.

Delays in Payouts

Insurers often drag out investigations to discourage victims from pursuing claims.

Low Settlement Offers

They may calculate damages using formulas that undervalue pain, suffering, and long-term care needs.

Denials of Liability

Sometimes they claim the injury was a “known risk,” not negligence.

That’s why it’s critical to have a Georgia medical malpractice lawyer who can challenge these denials, present solid evidence, and negotiate from strength.

Does Malpractice Insurance Protect Patients Too?

Not directly.

Malpractice insurance protects the provider, not the patient.

However, it ensures there are funds available when a victim wins a medical malpractice case.

Your attorney’s job is to access those funds by proving fault and forcing the insurer to honor the policy.

The Role of Your Lawyer in Dealing with Insurance Companies

Here’s how Finch McCranie LLP handles the insurance side of every malpractice claim:

1. Policy Investigation – We identify every insurance policy covering the provider or facility.
2. Coverage Analysis – We review limits, exclusions, and expiration clauses.
3. Negotiation – We communicate directly with insurers to seek fair compensation.
4. Litigation – If an insurer refuses to pay, we pursue trial or bad-faith action.
5. Client Advocacy – Throughout the process, you’re informed and supported every step of the way.

Our experience ensures insurers can’t exploit technicalities to deny what you deserve.

Common Insurance Defenses Against Malpractice Claims

Insurance companies rely on predictable defenses, including:

• “Standard of care met” – Claiming treatment met professional norms.
• “No causation” – Arguing the patient’s outcome was unavoidable.
• “Consent signed” – Using consent forms to excuse negligence.
• “Pre-existing condition” – Blaming the patient’s health rather than provider error.

Our lawyers counter these arguments with expert testimony, detailed records, and a clear narrative proving that negligence—not chance—caused your harm.

Medical Malpractice Insurance in Georgia: Legal Requirements

While Georgia doesn’t have a universal mandatory minimum, hospitals and major practices typically require staff physicians to carry coverage.

Some private clinics, however, may operate under-insured or even uninsured.

That’s why it’s vital to investigate early.

Our firm frequently uncovers multiple policies—including those held by hospitals, staffing agencies, or independent contractors—that increase your potential recovery.

What Happens If the Doctor Doesn’t Have Enough Insurance?

If the policy doesn’t cover your full damages, there are still options:

• Suing multiple responsible parties (hospital, staff, contractor)
• Targeting corporate policies for negligent hiring or supervision
• Pursuing excess or umbrella insurance coverage

Our Atlanta medical malpractice attorneys know where to look for every available source of compensation.

Frequently Asked Questions Q1. Can I deal directly with the insurance company myself?

You can, but it’s not advised. Insurers may record your statements or use your words against you. Let your attorney handle all communications.

Q2. Does malpractice insurance always pay when negligence is proven?

Usually yes, but insurers can still contest payments or appeal verdicts. Legal pressure from your attorney ensures compliance.

Q3. How do I find out what coverage my doctor has?

Your lawyer can obtain this information during the discovery phase of your lawsuit.

Q4. Can a hospital’s insurance deny coverage for an employed doctor?

They may try, but employment contracts and agency laws often keep hospitals financially liable.

Q5. Does medical malpractice insurance cover emotional damages?

If a court awards pain-and-suffering compensation, the insurer must pay within policy limits.

Why Choose Finch McCranie LLP

For over five decades, Finch McCranie LLP has helped Georgia families stand up to powerful insurance companies after devastating medical errors.

• We’ve recovered millions in verdicts and settlements.
• We know how insurers evaluate—and undervalue—claims.
• We fight until clients receive every dollar they deserve.

When medical negligence changes your life, you need a law firm that understands both the medical malpractice system and the insurance machinery behind it.

Take the Next Step Toward Justice

If you suspect a hospital, doctor, or nurse harmed you through negligence, don’t let their insurer decide what your suffering is worth.

Call Finch McCranie LLP today for a free consultation with a medical malpractice lawyer in Atlanta.

We’ll review your case, explain how insurance impacts your claim, and fight tirelessly to protect your rights.

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