A Powerful Defense
If you face a malpractice allegation, that's when you learn if you selected the right malpractice insurance plan and carrier. The more you know and understand the defense offered, the better.
One of the most important features of a malpractice insurance policy is whether it gives you the authority to settle a malpractice claim. The best situation is if consent to settle can only be authorized by you, the policyholder.
Pay very close attention to how consent to settle is handled in any plan you're considering. Many policies include clauses that limit the dentist's authority to settle or not.
Defense costs are legal expenses incurred by the insurance company to defend suits brought against you. Defense costs outside of the limits of liability mean that as dollars are spent in your defense, your limits of liability remain fully intact at the limits chosen by you. Defense costs inside the limits of liability mean that as money is spent defending your case, your limits of liability are reduced acccordingly, leaving less money for negotiation of a settlement, or worse, less money to pay a judgment if one is awarded against you.