It depends on the state. Only a few states require physicians to carry malpractice insurance by law, and California isn’t one of them. In practice, most hospitals, surgery centers, health systems, and insurance networks require it before they grant privileges or sign a contract. Check your state’s rules and your facility’s requirements.
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If your application contains purposefully misleading, absent, or inaccurate information, you could be charged with fraud. Your insurance carrier could potentially void your policy, or you could face civil or criminal charges or penalties.
Any person who knowingly and with intent to defraud any insurance company or other person, files an application for insurance or statement of claim containing any materially false information or conceals, for the purpose of misleading, information concerning any fact material thereto, commits a fraudulent act, which is a crime.
