How Does Professional Liability Insurance Protect an Urgent Care?

In the fast-paced world of healthcare, especially in urgent care centers, providing medical services comes with a high level of responsibility. Urgent care centers serve patients with a variety of conditions, from minor injuries to more serious health concerns that need immediate attention. With the pressure to deliver quality care quickly, there is also an increased risk of mistakes. That's where professional liability insurance comes into play. But how does it protect an urgent care center?

Let’s walk through a story of an urgent care center and its importance in mitigating risks and maintaining financial stability.

A Day in the Life of an Urgent Care Center

Imagine Dr. Kim, who runs a busy urgent care center in a suburban area of Baton Rouge. The center is constantly buzzing with patients needing treatment for everything from a sore throat to minor injuries like sprained ankles. One particular day, a patient came in with chest pain. The staff quickly followed protocols, performing an electrocardiogram (EKG) and administering the necessary medical care. However, the patient’s condition worsened after leaving the center, and they had to be admitted to the emergency room later that night.

A few weeks later, Dr. Kim received a legal notice—the patient had filed a claim alleging that the center failed to provide proper care, leading to further complications. Even though the staff had done everything they could, the reality is that unexpected outcomes happen in healthcare.

This is where professional liability insurance steps in to protect Dr. Kim and her urgent care center.

What Is Professional Liability Insurance?

Professional liability insurance, also known as malpractice insurance in the healthcare field, protects medical professionals and urgent care centers from claims of negligence or errors in the services provided. It covers legal fees, settlements, and judgments that may arise from lawsuits, which can be extremely expensive without insurance.

For Dr. Kim’s urgent care center, having professional liability insurance meant that her legal defense and potential settlements would be covered, giving her peace of mind and allowing her to continue operating the center without the financial burden of a costly lawsuit.

Protection Against Common Legal Risks

Urgent care centers are unique because they offer a middle ground between primary care physicians and emergency room visits. With this scope of services, the risks are varied, ranging from simple miscommunications to more complex medical issues.

For example, the following scenarios can lead to legal claims:

• Misdiagnosis: A patient with symptoms of a urinary tract infection is misdiagnosed with a minor illness, leading to further complications.
• Medication Errors: A staff member prescribes the wrong medication, causing an allergic reaction.
• Treatment Delays: A patient with minor injuries is not treated promptly, leading to a worsening condition.

Professional liability insurance would help cover the legal costs associated with these types of claims. It’s important to understand that even when healthcare providers are doing their best, errors or perceived mistakes can still occur. Having this insurance coverage means that the financial fallout from these claims won’t devastate the business.

Why Is It Crucial for Urgent Care Centers?

Urgent care centers handle a wide variety of medical conditions. In addition to sore throats and ear infections, these centers may deal with chest pain, broken bones, and more serious injuries that require immediate medical attention. With such a broad range of services, the risk of a lawsuit is higher compared to other healthcare facilities.

Professional liability insurance provides essential protection against:

• Legal Defense Costs: Even if a claim is unfounded, the cost of legal defense can be enormous. Professional liability insurance covers attorney fees, expert witness costs, and other legal expenses.
• Settlements and Judgments: In cases where the court rules in favor of the patient, the insurance covers any settlements or judgments, protecting the financial well-being of the urgent care center.
• Reputation Management: Public relations services are often included to help repair the center’s reputation after a lawsuit, which is crucial for maintaining patient trust.

Coverage Tailored to Healthcare Providers

Professional liability insurance isn’t one-size-fits-all. Insurance companies offer specialized policies for healthcare providers, ensuring that the unique risks faced by urgent care centers are covered. From claims related to incorrect diagnoses to allegations of improper medical treatment, these tailored policies address the specific challenges faced by urgent care centers.

For example, Dr. Kim’s urgent care center is covered under a professional liability policy that includes:

• Medical Malpractice Coverage: Protects against claims related to negligence or improper care.
• Errors and Omissions (E&O) Coverage: Covers claims related to administrative mistakes, like miscommunication of lab results or incorrect documentation.
• Defense Costs: Provides coverage for legal defense costs, regardless of whether the claim is valid or not.

Avoiding Financial Devastation

Without professional liability insurance, an urgent care center could face serious financial risks. Legal battles are expensive, and settlements can reach hundreds of thousands or even millions of dollars. For smaller urgent care centers, a single lawsuit could be enough to force them to close their doors permanently. With the right professional liability coverage in place, urgent care centers can avoid financial devastation and continue to serve their communities.

Dr. Kim’s urgent care center faced an uncertain legal situation, but thanks to her professional liability insurance, the legal costs were covered, and she was able to resolve the issue without financial ruin. This example illustrates how crucial it is for urgent care centers to have the right protection in place.

Peace of Mind for Urgent Care Providers

Running an urgent care center comes with enough daily challenges—adding the fear of a potential lawsuit into the mix can make it difficult to focus on providing quality care. With professional liability insurance, urgent care centers like Dr. Kim’s can operate confidently, knowing that they’re protected from the financial consequences of legal claims.

If you’re curious about other types of insurance that can protect your urgent care center, check out some of our recent blog posts:

• What Insurance Does an Urgent Care Center Need?
• What Are General Liability Risks for an Urgent Care Center?
• Why Does an Urgent Care Center Need Cyber Liability Insurance?
• What Insurance Is Required for Urgent Care Centers?

Professional liability insurance is an essential component of running an urgent care center. By covering legal costs and settlements, this insurance provides financial security and peace of mind, allowing urgent care centers to focus on what they do best—providing high-quality medical care to their communities.

About Kastner Insurance Group

Founded in 2017, Kastner Insurance Group is a full-service, independent insurance broker based in Lafayette, LA. Our insurance agents specialize in offering a variety of insurance products tailored to individual and commercial needs, making sure clients receive personalized and comprehensive coverage options from a variety of insurance companies/insurance carriers.

With over 43 years of combined experience, the team at Kastner Insurance Group is dedicated to providing expert advice and exceptional service. They proudly serve professional offices and businesses across Lafayette city/parish, Youngsville, Broussard, Baton Rouge, New Orleans, Alexandria, Acadiana, and statewide in Louisiana.

Call us today or visit our website for a customized quote.  

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