Most physicians know they carry malpractice coverage.
Fewer know exactly what else is built into their policy.
Licensing boards, peer review panels, federal auditors, OSHA — the administrative and regulatory landscape for physicians has grown significantly more complex. And while most physicians carry malpractice insurance, far fewer know whether their policy is built to handle threats beyond the courtroom.
If you’re insured through Medical Mutual, there’s a good chance you have more protection than you realize. Two features, in particular, are worth understanding: MedGuard and Verdict Inflation Protection (VIP).
What Is MedGuard?
MedGuard is a defense coverage embedded in Medical Mutual’s professional liability policy. It was originally a separate endorsement with an added cost; it has since been built into the policy at no additional charge.
It provides up to $50,000 in annual aggregate coverage for legal defense costs associated with administrative and regulatory proceedings that fall outside a traditional malpractice claim. That includes:
• State licensure and disciplinary board actions
• RAC audit defense (Medicare and Medicaid billing investigations)
• OSHA investigations
• Peer review proceedings at hospitals, HMOs, and professional societies
• Office for Civil Rights complaints alleging discrimination or unequal access
• ADA claims related to physical accessibility or refusal to treat
• Wrongful contract termination by a health insurer (when you advocated for appropriate patient care)
• Biomedical waste disposal claims
• Emergency treatment expenses for accidental injury in your office
MedGuard also includes e-dataRESPONSE, a cyber coverage component that helps cover the legal, notification, and remediation costs associated with a data breach. Additionally, Witness Assistance coverage provides up to $10,000 for legal help when responding to a subpoena or similar request.
Most physicians know they have MedGuard. Far fewer understand the full scope of what it covers. If you haven’t reviewed it recently, it’s worth a closer look.
What Is Verdict Inflation Protection?
Verdict Inflation Protection, known as VIP, addresses a specific and increasingly relevant risk for Maryland physicians.
Most physicians carry a $1,000,000 policy limit. In Maryland, non-economic damages (pain and suffering, loss of consortium) are subject to a state cap — a cap that increases over time. As that cap rises, it consumes a larger portion of the standard $1 million limit, leaving less room to satisfy any economic damages that may be awarded in the same case.
The practical effect: even on cases with modest economic damages, a physician might feel less inclined to defend vigorously because a verdict could approach or exceed the policy limit.
VIP is Medical Mutual’s answer to that dynamic.
In cases where economic damages do not exceed $250,000, VIP expands the policy to cover the non-economic portion of a judgment beyond the $1 million limit — up to an additional $300,000. It is provided at no extra charge, it does not reduce your annual aggregate limit, and it is not excess coverage. It is a built-in feature of your primary medical professional liability coverage.
The goal is straightforward: physicians should be able to defend the quality of their care without financial exposure becoming a factor in that decision.
Why This Matters
Neither MedGuard nor VIP requires you to do anything to activate them. But understanding what they do — and whether your current coverage structure is working as intended — is worth a conversation.
Coverage from other carriers may include similar administrative defense components under different names and with different limits. Not all policies offer the same protections, and the specifics matter.
If you have questions about how your MedGuard or VIP coverage applies, or if you’re not sure whether you have these features, contact Unity. We’re here to help you understand what you have — before you need it.