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Getting the latest healthcare news for you
Getting the latest healthcare news for you
A South Carolina ob/gyn is suing his malpractice insurer, MagMutual, for refusing to settle a birth injury lawsuit — even after he personally asked them to. The case ended in a $4.68 million verdict, leaving him on the hook for $2.68 million beyond his $2 million policy limit. The case highlights a growing tension between physicians and their insurers as "nuclear verdicts" become more common.
A South Carolina ob/gyn, Dr. Gregory Miller, is suing his malpractice insurer MagMutual in federal court, alleging the company refused to settle a birth injury lawsuit despite multiple opportunities — and even after he explicitly requested they do so. The original case stemmed from a 2007 delivery in which a newborn suffered nerve damage leading to Erb palsy. After years of delays and a 2022 trial, a jury awarded the plaintiff $2.5 million, which ballooned to nearly $4.7 million with over a decade of interest. Miller's policy only covered $2 million, leaving him personally liable for $2.68 million.
Legal experts say the case exposes a fundamental conflict of interest between insurers and the physicians they cover. What's financially prudent for an insurer — rolling the dice at trial — may be catastrophic for the doctor. Experts recommend physicians facing potential excess verdicts hire independent counsel to advocate on their behalf and, if necessary, lay the groundwork for a bad-faith lawsuit against the insurer.
By the Numbers:
Why it matters: As malpractice verdicts climb, physicians need to understand the limits of their coverage and the potential conflicts with their insurers — because when things go wrong, the financial fallout can be devastating and deeply personal.
