It may seem like purchasing medical professional liability insurance should be as simple as looking at the options available to you and picking the cheapest one. And you can do that, but it’s not likely to get you the best policy for your needs, nor will it necessarily even save you the most money.
The reason that brokers are such a valuable asset for doctors looking to cover risk is that the malpractice field is big and the various options and alternatives can be quite complex. Further, a medical malpractice insurance broker has the benefit of an ongoing relationship with many insurers allowing them to negotiate not only tailored policies, but reduced premiums as well on behalf of their client.
Here’s an example of a case where simply looking at who offers the cheapest policy would not tell the full story. The Doctors Company (TDC), one of the nation’s largest malpractice insurers, offers their customers the opportunity to participate in The Tribute Plan, a program whereby they pay a percentage of the physicians’ premiums to customers on retirement. This policy has proved very popular and is partly responsible for TDC’s continued growth and success. This isn’t a pitch for TDC though. TDC is not the point. The point is that that’s just one example of the kind of thing that ideally should be factored in when considering where to purchase malpractice insurance.
Likewise, there are questions about the type of company one is signing up with. Is it a traditional corporation or some type of cooperative or customer owned risk pool? Are you liable for assessments (further charges in addition to initial premiums to cover increased risk)? And it’s not that any one type of company is better than all others. It will depend on who’s in the field in your area, what kind of legal restrictions and regulations your state has, and the specifics of your situation: age, years to retirement, size of policy, etc. All of these will factor into determining what kind of insurer you want to purchase a policy from, and only then can we begin talking about which insurer in particular and which specific policy you need.
When it comes to picking a specific insurer there are all kinds of things that should factor into your decision. What is the history of the insurer? Have they been in the market long? Stable? What kind of customer satisfaction rates do they have? Do you need someone who will pick up tail or prior acts for you? Are there other specific perks that are important to you personally?
And in addition to all of that, what if you want to handle all your risk management together? Can you save money by bundling a Business Office Policy with your malpractice insurance? A reliable broker can almost certainly see to it that you do. For one thing a good medical malpractice broker is going to get you a good value on your malpractice insurance in the first place. Your broker will be familiar with all of the policies and options, will know exactly what you’re needs are and will be able to negotiate with an insurer to get you the best deal. But in addition, the opportunity to help you find multiple policies is an incentive to your broker to find you the best deals possible.
The best part is that all of this doesn’t cost you anything. Brokers are paid by insurers because they provide them with their business. That’s why insurers are willing to work with brokers and negotiate. They know that brokers bring them their clients, and that if they can’t be competitive a broker will just go find you a policy through another insurer. Essentially, a broker is someone who does the research, shopping, and negotiating for you, but is paid by the insurers for bringing them their customers. It’s a win/win situation for you, the customer.
That is, it’s a win/win situation if you find a good medical malpractice insurance broker. If you are in the market for a new policy, or just want to consider whether what you have is really the best policy for you contact one of our professionals here at eQuoteMD and we’ll be happy to help you find a broker that can serve your needs. You can e-mail us, or call us toll free at 1 (855) 857-8746. Hope to hear from you soon!
