Seven ways you could be wasting money on your malpractice insurance Print
Written by Matt Gracey   
Wednesday, 23 March 2011 08:04

Did you know that most doctors waste money on malpractice insurance, which is one of the largest expenses each year in a medical practice?

Here are just seven of the most common ways doctors continually spend too much:

1.     Not asking for all of the available credits

Most insurance companies offer multiple credits, ranging from discounts for claims-free history and practicing part time to discounts for society membership, and many others.  Never assume your credits are correct and always ask how your bottom-line premium was calculated and if there are any more credits to apply to lessen your rate.      

2.     Purchasing duplicate coverages

Some coverages that another agent may try to say are necessary as part of another type of policy can be included in a malpractice insurance policy, so make sure there is policy coordination to avoid duplicate expensive coverage. 

3.     Not considering a deductible

Taking a deductible basically hedges your insurance bet.  Your agent should perform a ten-year historical deductible analysis each year to give you a decision-making tool for this. 

4.     Not choosing your liability limits wisely

Some doctors prefer lower limits but think that they are restricted from lowering their limits by a hospital, managed-care company, research study group, or the like.  Often, simply negotiating a bit will eliminate these concerns and allow a practice to lower to a much-less-expensive limit.

5.     Not considering purchasing as part of a larger group

Purchasing coverage as a small practice is almost never as economical as doing so as part of a purchasing-group program, so find a broker versed in finding you such savings.

6.     Not fully understanding your most important coverage features

Many extremely costly mistakes can be made while purchasing a complex malpractice insurance policy.  A relatively easy amount of education will go a very long way in protecting your practice from defending an uninsured lawsuit or simply making costly mistakes comparing policy features like "tails", "triggers", and retroactive coverage. 

7.     Not working with the right agent or broker

 Find an independent agent specializing in malpractice insurance placement for your type of practice setting (solo, group, hospital, nursing home, etc.) and one who has an educational approach versus a sales orientation.  Your agent should be strong enough within the malpractice insurance marketplace to fully and competently negotiate the best rates for you with the top insurers in your state. 

 

ABOUT THE AUTHOR: 

Matt Gracey is a medical malpractice insurance specialist with Danna-Gracey, a boutique insurance agency specializing in medical malpractice and workers compensation for Florida's medical community. To contact him call (561) 276-3553 or (800) 966-2120, or e-mail matt@dannagracey.com.

Last Updated on Wednesday, 30 March 2011 08:45