ABSTRACT
The primary function of the insurance business as a whole is risk management. Like all insurance companies, malpractice liability carriers collect premiums from policyholders, invest the money, and then once the policyholder has a claim, those funds are used to defend the claim and to pay any judgment amount up to the policy limit. Malpractice insurance is absolutely essential for doctors who desire to protect their assets, their practices, their professional standing, and their valuable time. Malpractice insurance provides real protection on many levels. It is an indispensable comfort and an invaluable wellspring of resources that can be mustered on the doctor’s behalf when necessary. The malpractice insurance company has only two obligations. The first is to defend their client, the doctor. The second is to pay any judgment rendered up to the policy limits. The doctor will be defended, but a judgment will be paid only to the extent of the coverage amount.
