With your Malpractice insurance from Lockton Affinity, you will select a limit of coverage. There are multiple options and nuances with limits, and it can help to have a basic understanding to select the best limit option for your situation.
An insurance limit, or limit of liability, is the maximum amount the insurance company will pay under a given policy. If a claim is filed against you, the maximum amount the insurance company will pay is the limit you selected.
Despite the limit you select, they are always set up in the same way.
$1,000,000 Occurrence / $3,000,000 Aggregate
$2,000,000 Occurrence / $4,000,000 Aggregate
The first number is the maximum dollar amount for damages and expenses to be paid for a single occurrence or incident. The second number is the maximum total dollar amount that your policy will pay out in a policy term (typically an annual policy).
Insurers offer malpractice insurance coverage with differing levels of protection to meet the needs and risk exposure of different professionals. One coverage variable is shared or separate limits.
Shared Limits for Malpractice Insurance
Many industry groups and associations may offer group malpractice policies with a shared aggregate limit, which makes sense in certain cases.
Some professionals share a limit as an individual with a corporate entity, or a liability limit may be shared among ODs in a small practice.
This limit option can offer individuals a lower price on their premiums. However, this also means all insureds and entities under this policy structure will share that maximum annual limit of liability. With a shared aggregate limit, there is a chance the policy limits could be consumed by claims from other group members by the time you need it.
Separate Limits for Malpractice Insurance
Groups can also choose separate limits. Separate limits allow each OD and entity to have an additional limit of liability, which is the same amount as yours but separate.
This option increases the premium amount but helps ensure you have access to your full policy limits should you need them in the event of a claim.
Limit Options for Malpractice Insurance from Lockton Affinity
As the administrator of the AOA Insurance Alliance, Lockton Affinity’s Malpractice insurance was developed with hands-on involvement by ODs, so we offer key benefits that can be difficult to find elsewhere.
For example, we offer both shared limits and separate limits so you can choose limits to meet your practice’s needs.
We make it easy to choose your limits, too. Simply select shared or separate limit during your application process.
Have questions about which option is best for your situation? Talk to one of our knowledgeable customer service representatives at (888) 343-1998. With more than a decade of experience serving doctors of optometry, our customer service representatives have the knowledge to guide your insurance experience.
