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There are lots of state based loop-holes for using a Bond in lieu of insurance coverage. In SC, you are not required to have car insurance if you purchase a Fidelity/Security Bond or whatever you call it. RIAs do not have to carry E&O in some states if they purchase a Bond to cover any claim. No surprise it exists for other professions as well.
It actually makes a lot of sense for Doctors imo. Lawyers take malpractice suits because they know the insurance company will usually settle and have deep pockets. But if malpractice insurance is not in the picture, then it will be much harder to get paid and it will likely be a much lower payday if at all. The BS lawsuits in the OB fields has become insane, and Id bet more and more doctors do this. jmo
As I first mentioned, even if they wanted to get malpractice insurance, the premiums in some areas make it unaffordable. The premiums have come down in recent years, but still, even if its $80K premium, that's a lot and makes them consider "going bare".
Regarding being less of a target for lawsuits if they don't have malpractice insurance... yes, that's true. However, it doesn't make them immune.
For example, for an Ob/Gyn, if the baby dies or comes out with a shoulder injury, those are almost always going to be cases an attorney would move forward on, regardless if the doctor has malpractice insurance or not.
In one case, the baby died in the womb. Parents sued the hospital and got $500K. Don't know about the doctor.
There is still a huge risk and why I posted this thread in the first place.
Future earnings is also something that could be encumbered. I don't know how that money can be protected.
For a doctor without malpractice insurance, almost every penny they have should be in a creditor protected account, be it a legal, financial, or insurance account.
That's why I mentioned annuities and life insurance. In Florida, they're 100% protected. They're just more tools a doctor has for creditor protection.