Applying for medical malpractice insurance can be more involved than you may have realized.
“It’s not like car insurance or homeowner’s insurance where you can fill out a short form and get an instant quote,” says Jade Gautreau, manager of business development at TMLT. “This is complex coverage, so we need a lot of information in order to give an accurate premium amount.”
To help you navigate the complexities of this coverage, this article will discuss some key factors that make up a medical malpractice insurance quote, or “indication” as it’s referred to in the medical malpractice industry.
Medical malpractice insurance (also known as medical liability insurance) covers health care professionals for errors associated with treating patients. These policies pay defense and settlement costs for claims alleging medical error or neglect, even if the claims are without merit.
When applying for this coverage, insurance carriers need to know the following.
Because different geographical regions have different legal climates and claim frequencies, insurance companies consider your practice location when determining your premium.
Specialty and scope of practice
Premiums also vary depending on your specialty and scope of practice. High-risk specialties — such as neurosurgery or obstetrics — may have higher premiums due to their increased likelihood of claims.
Practice structure and names of health care professionals
The ownership structure of a medical practice can also affect the indicated premium amount, as certain practice types may require separate malpractice coverage for the entity. The company will also need the names of all health care professionals in the practice.
Type of coverage
The type of coverage you request can also affect the insurance premium. Types of coverage include claims-made, occurrence, and per patient. See also What’s the difference between claims-made and occurrence?
Limits of coverage
Limits spell out the maximum amount your policy will pay. Medical malpractice limits can range from $100,000 per claim/$300,000 per policy period to $1 million per claim/$3 million per policy period, and your premium will vary based on the limits you request.
Insurance companies also consider your claims history and medical board actions when determining your premium amount. Because physicians with a history of claims or lawsuits may face increased insurance premiums or declinations, it is crucial to maintain clear and accurate records of any claims, incidents, or board actions. to provide to the insurance company.
Learn more about malpractice coverage by visiting our Buying Insurance website .