The Guide for Malpractice Insurance for Weight Loss Specialty Practices
The demand for weight loss procedures is growing, with Americans increasingly seeking solutions for long-term weight management, from bariatric surgeries to newer treatments like semaglutide injections such as Ozempic. The increased demand brings heightened risk: Complications can arise, results may vary, and patients’ expectations can often be misaligned with outcomes. That is why malpractice insurance for practices who specialize in weight loss is critical.
Keep reading to learn why you need malpractice insurance, what coverage options are available, how to handle a malpractice claim, and more.
Read our previous blog, Malpractice Insurance 101: Reputation Protection.
Why Practices who Specialize in Weight Loss Need Malpractice Insurance
Weight loss procedures, particularly surgical and pharmaceutical interventions, involve inherent risks that can lead to patient injuries, complications, or dissatisfaction with results. As weight loss services continue to evolve, it’s vital to have coverage that protects your practice against claims related to treatment errors, unforeseen complications, and other risks. Comprehensive malpractice insurance can help cover legal fees, settlement costs, and other expenses that may arise in such cases, shielding you from potentially devastating financial impacts.
Types of Malpractice Insurance for Practices that specialize in weight loss.
When choosing malpractice insurance for a weight loss clinic, you need to know that the only type of malpractice insurance coverage available for practices that specialize in weight loss is claims made. This is because none of our dozens of admitted company partners offer malpractice insurance coverage for practices that specialize in weight loss. However, dozens of our non-admitted company partners do specialize and offer this type of coverage.
Since claims made is the only coverage option available, please note the differences below between the two most common coverage types:
Claims-Made Coverage for Weightloss Specialty Practices
Claims-made coverage applies only if the incident and claim filing occur while the policy is active. These policies are often more affordable but require an additional investment in tail coverage for post-policy protection, which is crucial for weight loss procedures that may have delayed complications.
Occurrence-Based Coverage for Weightloss Speciality Practices
Occurrence-based policies cover incidents that happen during the active period, regardless of when the claim is filed, even if it’s after the policy expires. They offer long-term peace of mind by covering all eligible events during the policy period, but they’re usually the pricier option.
Occurrence coverage is currently not available for practices that specialize in weight loss; only claims-made policies are available.
Key Considerations for Practices Who Specialize in Weight Loss
Several factors must be considered if you offer weight loss procedures and are looking to buy malpractice insurance.
Here are a few of the most important things to look out for:
Policy Exclusions and Limitations
Some insurers may limit coverage based on patient Body Mass Index (BMI) or restrict coverage to FDA-approved treatments only. Be mindful of any exclusions around the specific weight loss drugs or procedures your practice offers, such as the popular semaglutide-based treatments like Wegovy and Ozempic.
Medication and Product Liability
For clinics offering pharmaceutical treatments, particularly those using new drugs or off-label medications, ensuring product liability coverage is key. Some policies might exclude non-FDA-approved uses or may require brand-name medications only, affecting what treatments you can provide under coverage.
Telemedicine and Multi-State Exposure
As weight loss services increasingly move online, many clinics are offering telemedicine. This multi-state exposure requires insurance that complies with each state’s malpractice requirements. Be aware that not all insurers cover telemedicine across multiple states, so tailor your policy to fit this mode of operation if needed.
Choosing the Right Insurance Provider for Your Weightloss Specialty Practice
It is so important to choose an insurance provider with weight loss industry expertise, since these insurers will be better aware of the dangers specific to you. Cunningham Group specializes in providing doctors and weight loss centers with innovative and personalized insurance and risk management solutions.
