Value of Higher Limits
Fear of the Uncapped
Under the Louisiana Medical Malpractice Act, damages are capped at $500,000 plus continuing medical expenses for providers who purchase the statutorily-required $100,000/$300,000 primary layer and pay the Patient’s Compensation Fund (PCF) surcharge.
FACT: Not all claims qualify for a damages cap under this Act.
Even though the frequency of uncapped claims is low, their cost can be substantial. Healthcare providers should thoroughly assess their practices and consider the purchase of excess insurance for protection against uncapped claims.
Although a variety of claims may not be covered by the Louisiana Medical Malpractice Act, some common circumstances include:
Uncapped Third-Party Liability Disputes
Example: The healthcare provider treats a patient for a rash which is infectious. A third-party plaintiff contracts the infectious disease from the patient and sues the healthcare provider.
Example: The healthcare provider treats a patient who is involved in an auto accident, and the victims of the accident sue the healthcare provider alleging improper treatment of the driver.
Uncapped Out-of-State Claims
Example: The healthcare provider practices medicine remotely via telecommunication technologies, and the patient files suit in their own state - not in Louisiana.
Example: The healthcare provider treats a non-Louisiana patient. The patient sues in the state in which the patient resides, and the court in that state finds jurisdiction over the healthcare provider.
Healthcare providers can protect themselves from liability for uncapped claims by purchasing limits of liability above $100,000/$300,000. The cost for higher limits of coverage is at historically low levels and is minimal considering the potential exposure of an uncapped claim.
Value of Higher Limits
The premium LAMMICO charges for limits above $100,000/$300,000 is deeply discounted because of the relatively small number of claims that may fall outside the protection of the cap. Now more than ever, healthcare providers should consider incurring the minimal expense for protection in the event of an uncapped claim premium.
Choosing higher limits with LAMMICO is a cost-effective, way to avoid personal financial exposure.
Your LAMMICO Marketing Representative can work with you to address your specific inquiries with greater insight. Call 800.452.2120 or contact your LAMMICO appointed agent today.