The consent to settle clause is particularly significant because all malpractice settlements and judgments are recorded with the National Practitioner Data Bank, the reporting agency for hospitals, HMOs and other managed care organizations. Read the policy and seek advice about conditions that pertain to settlement of a claim.

Most doctor-owned carriers require the policyholder's consent before they settle any claim. Some restrict the amount of coverage available when a doctor refuses to consent to a settlement, and some require arbitration of disputes or have other clauses that limit consent prerogatives.