What may happen if a physician's professional liability insurance lapses?

If a physician's professional liability insurance lapses, the most significant consequence is that the physician may face penalties or claims. This is because professional liability insurance is designed to protect healthcare providers against claims of negligence or malpractice. Without this coverage, the physician is exposed to the risk of financial and legal repercussions if a claim is made against them by a patient.

In addition to facing potential lawsuits, the absence of insurance may lead to challenges in maintaining a medical practice, as many healthcare facilities, employers, and state licensing boards require practitioners to carry active malpractice insurance. This reliance on insurance serves a dual purpose: it protects both the physician's financial interests and patient welfare.

While options like criminal charges or fines relate to different aspects of legal regulation and penalties for various infractions, they do not directly arise from the mere lapse of liability insurance. Prescribing medications is typically linked to the physician's licensure and does not automatically depend on the status of their liability insurance. Therefore, the most widely applicable and immediate consequence of a physician's insurance lapse is the exposure to penalties or claims resulting from potential malpractice situations.