Apr 11, 2025
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“He was furious!”
Helena Allen, a claims examiner at Berxi, recalls the initial conversation she had with a medical malpractice insurance customer.
Our customer, an experienced physical therapist (PT), had just received a demand letter from the attorney of one of his regular patients. This formal letter, which may precede a lawsuit filing, requested that he pay the patient for damages and suffering caused by using unsanitary equipment found at the PT’s practice. And our customer was angry about what he believed was a baseless accusation of the unsanitary procedures of his staff.
Read on to learn how our PT handled the situation and how having an experienced malpractice insurance provider helped save him money and defend his reputation.
The demand letter stated that the patient had developed a burning rash after treatment from the PT. As a result, the patient was demanding the PT pay $25,000 for the emotional and physical pain that resulted.
The patient who, along with his girlfriend, was a regular visitor of the practice, had allegedly noticed the uncleanliness of the office during other PT sessions, but never said anything to the PT.
Helena recalls the PT being baffled: “Why did the patient and his girlfriend keep coming back to the practice if they thought it was dirty?” he wanted to know. The PT also told Helena that the patient had hygiene issues of his own, frequently coming in for sessions sweaty and unwashed.
What does a healthcare provider do when they receive a demand letter or are accused of malpractice? If they have a malpractice insurance provider, the answer is easy: they file a claim. That’s precisely what our client, who has physical therapy malpractice insurance, did when he called Berxi’s claims support.
Once a claim is filed with Berxi, it’s assigned to a claims examiner who reaches out to the client within 24 business hours for an initial review. In this case, however, the PT couldn’t wait. When he filed his claim and learned Helena would be assigned to him, he called her immediately. He wasn’t sure what to do or whether this was something his policy covered, but Helena was quick to offer guidance. “I confirmed that he was covered and explained how his malpractice policy could help protect him,” Helena shares.
Normally the initial intake conversation with a client can take about 15 minutes. Helena recalls her conversation with the PT went much longer. “Our client was upset about his professionalism being called into question. I just listened and empathized with him because this is his livelihood.”
After getting the client’s side of the story, Helena then contacted the attorney for the patient to get more information on what happened. She learned that after breaking out in a facial rash, the patient made a virtual appointment with a doctor. She requested documentation about the doctor’s visit and was surprised by what it uncovered.
During the virtual visit, the doctor told the patient that the rash was likely the result of a bug bite. The patient, however, was not happy with that diagnosis and eventually scheduled an in-person visit. During that visit, the doctor made a diagnosis of dermatitis.
Helena made the decision not to hire an attorney. However, before she responded to the demand letter, she had to consult with the client about how he wanted to proceed. Did he want to settle to dismiss the matter as sometimes happens with malpractice incidents?
Our client was steadfast in his decision. “He was angry to be wrongly accused and didn’t want to pay a dime.” As a result, Helena crafted a response to the patient’s attorney informing him that they wouldn’t pay the $25,000 demand. The attorney then came back with a counteroffer of $8,000. Once again, with permission from our client, Helena refused to settle.
Upon learning that Berxi would not pay the counteroffer, the attorney for the patient threatened to follow up with a lawsuit. Helena knew there was no evidence to support the accusation and eventually was able to close the claim. The client was relieved and grateful. “I told him to call me if he receives any notice of a lawsuit in the future,” she adds. At that point, she would help hire a qualified malpractice attorney, a cost covered under the client’s Berxi policy.
How often do PTs get sued? We don’t have great data on this. But according to a 2007 National Institute of Health (NIH) report on malpractice cases against physical therapists, the data showed that about 2.5 suits were filed against every 10,000 PTs per year, with a median judgment or settlement payment amount of $10,000 to $15,000.
A 2011–2015 study later found that physical therapist malpractice payouts reached $42 million.
The figures don’t include false accusations that also need legal assistance. Considering this data is old and the country has only become more litigious, we can imagine the number of malpractice lawsuits, claims, and formal accusatory letters has greatly increased today.
As this PT’s story shows, medical malpractice allegations can come up at any time — even when the claim is baseless. This is why choosing an insurance company with top-rated customer service and the best financial backing in the industry is incredibly important. You want to trust that when you have a claim, you will be in good hands, emotionally and financially.
An added bonus: Buying direct from Berxi can save you an average of 20% on your physical therapist insurance plan. Because Berxi is part of Berkshire Hathaway Specialty Insurance Company (BHSIC), a malpractice insurance policy from Berxi comes with the knowledge that you’re supported by a company that has the highest possible financial strength rating of A++ from AM Best and AA+ from Standard & Poor’s.
With Berxi, you’ll get:
To get this protection and peace of mind for your practice and livelihood, start your quote here.
Image courtesy of iStock.com/AaronAmat
Image courtesy of iStock.com/fizkes
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Gina Gallagher is an award-winning copywriter, published author, and motivational speaker with more than two decades experience of providing freelance writing services to leading companies.
Amy Beardsley Mar 25, 2025
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