What to Know About Consent to Settle
Consent to settle is a feature in many malpractice insurance policies that gives you, the insured, the right to approve or deny any settlement offer made in a malpractice lawsuit. This clause is designed to protect your interests and give you control over your professional reputation.
Why is Consent to Settle Important?
Without a consent to settle clause, your insurer could accept a settlement offer without your approval, even if accepting the settlement could harm your professional standing. With this clause in place, you have a say in the resolution of the claim, providing an added layer of protection for your practice.
- Maintaining Professional Reputation: If a malpractice claim is settled without your consent, it could be perceived as an admission of guilt, potentially damaging your professional reputation. With the consent to settle clause, you can control whether a claim is settled or contested.
- Avoiding Unwanted Precedents: Settling a malpractice claim can sometimes set a precedent, inviting more claims in the future. The consent to settle clause allows you to decide if a case should go to court to avoid setting such precedents.
- Controlling Financial Outcomes: While settlements often involve less money than a successful lawsuit, they still can be substantial. Having a say in the settlement decision gives you some control over potential financial impacts.
- Preserving Future Insurability: Some insurers may view settlements as a risk factor when determining insurability and premiums. Having the ability to consent to a settlement can help preserve your insurability in the future.
- Protecting Your License: In some cases, a settlement could result in a report to the National Practitioner Data Bank or state medical boards, impacting your license. With the consent to settle clause, you have a say in decisions that could affect your licensure.
Things to Consider About Consent to Settle
While the consent to settle clause offers significant benefits, there are a few things to bear in mind:
- Policy Details: The specific terms and conditions of the consent to settle clause can vary from one policy to another. It’s crucial to read and understand the details of your policy.
- Insurer’s Advice: While you have the final say, it’s essential to consider the advice of your insurer. They have extensive experience in handling such claims and can provide valuable insights.
- Financial Implications: If you refuse to settle a claim and the case goes to trial resulting in a larger judgment, you may be responsible for the difference between the settlement offer and the final judgment.
Navigating these considerations can be challenging, especially when you’re focused on your medical practice. This is where the value of a knowledgeable insurance agent comes into play.
The Benefits of Working With an Experienced Malpractice Insurance Agent
Understanding the consent to settle clause is crucial in maintaining control over your professional reputation and financial stability. However, navigating malpractice insurance policies can be complex. Working with a knowledgeable insurance agent, like those at Cunningham Group, can help you make more informed decisions when looking for the right coverage for your needs.
Our agents can guide you through the intricacies of your policy, including the consent to settle clause, ensuring you have comprehensive protection against potential malpractice claims. Don’t leave your professional reputation and financial security to chance. Contact us today and request your free medical malpractice insurance quote.
