Physicians in New York pay more for medical malpractice insurance than anyone else. That’s why it’s important to find the best coverage at the lowest rate possible for your practice. The state of New York is one of the best places to practice medicine in the country, and along with the state’s high level of population, that means there are more doctors in New York than any other state. You might think that with so many doctors there would be a lot of insurance options, but that is not the case.
For many years there were only 2 choices of medical malpractice insurance carriers. These 2 companies still have most of the market share in the state. In the last few years alternative options have been offered in the form of Risk Retention Groups (RRG). RRGs can offer lower rates than admitted carriers and flexibility in underwriting guidelines. The introduction of RRGs in New York has made practicing medicine more affordable for many physicians, but the premiums are still higher than most of the rates across the country.
Why are medical malpractice insurance rates so high in New York?
First, there are more malpractice payouts in New York than any other state. This is known as “claim frequency.” Not only that, but New York has the highest payouts in the U.S., so the “severity” of the claims is higher than anywhere else. Also, New York does not have any significant tort reform regarding malpractice claims.At one time, at least 30 states had placed a limitation on the dollar amount for pain and suffering in medical malpractice lawsuits.There is no cap or limitation for dollar amounts paid for pain and suffering in New York. Add to that the high level of population, especially in the New York City area, and it is naturally a place where there are more medical malpractice claims than any other state.
How to Find the Best Malpractice Insurance in New York:
Choose your liability limit first: Most hospitals in New York require $1,300,000 per occurrence and $3,900,000 aggregate. This means that you would have $1.3 million per claim up to $3.9 million in each policy period, which is almost always 1 year. If you are not working in or affiliated with a hospital, it is likely that you would choose $1M/$3M limits, which would lower your cost slightly. The higher limit vs. lower limit decision is somewhat controversial. On the one hand, a higher liability limit means more coverage in the case of a claim, but it can also mean you are the target of more claims because there is more money to be had if a claim is paid.
Choose the type of policy next: Most insurance companies in New York offer Claims-Made and Occurrence coverage. With a claims-made policy, there is coverage for prior acts going back to the retroactive date, and coverage going forward as long as the premium is paid and the policy is active. If there is a need to cancel a claims-made policy, an Extended Reporting Endorsement, or Tail Coverage, would need to be purchased. The cost of the tail is typically 2 – 3 times the premium at the time of cancellation.
Because of the high cost of tail coverage, many New York physicians choose an Occurrence policy. The annual premium is higher than a claims-made policy, but there is no need for tail coverage if the policy is cancelled. Some physicians feel this is a safer option because there is no unexpected cost at the end of the policy.
Before purchasing a policy, check out the different types of medical malpractice insurance companies in New York. There are 2 options: Admitted Carriers, which are regulated by the state, file their rates with the New York Department of Insurance, participate in the state Guarantee Fund, and are approved by the hospitals. Non-Admitted Carriers are alternative companies such as RRGs. They usually have lower rates, flexibility in underwriting, and can provide creative solutions for higher risks. Which type of company you choose for medical malpractice insurance in New York depends on your practice, specialty, location, and claims history. Working with the experts at eQuoteMD is the best way to figure out what’s best for your situation.
It’s also important to know about the Medical Malpractice Reform Act of 1986. This act established the Medical Malpractice Insurance Pool (MMIP), which was to lower malpractice insurance rates by offering excess coverage in addition to individual policy liability limits. Physicians with a few claims or higher risk specialties can also get coverage through MMIP. The consultants at eQuoteMD can help you navigate the details of this program to ensure that you have the right coverage.
Once you have done your research and picked a liability limit, chosen the type of coverage you need, decided on the type of insurance company you want to go with, and learned about the MMIP program, it is time to request a quote.
Steps to take when purchasing medical malpractice insurance in New York:
- Liability Limit
- Type of Coverage
- Claims-Made
- Occurrence
- Type of Insurance Carrier
- Addmitted
- Non-Admitted
- MMIP Coverage
- Obtain Quotes
How to Find the Best Medical Malpractice Insurance Quotes in New York:
Getting quotes on your own can be confusing and challenging. It is best to work with a broker because they will have multiple options. Working with an agent of one company only gives you one option, and it may not be the best option. eQuoteMD provides qualified, established, and experienced brokers specializing in medical malpractice insurance in New York. eQuoteMD has more options than any other independent broker in the state. To get a quote, go online and request a quote from eQuoteMD. An expert will contact you and get the information needed to provide an official quote and offer of insurance from well established, financially solid insurance companies. eQuoteMD has solutions for any specialty in any state.
