Sometimes shopping for medical malpractice insurance rates can be confusing. If you are looking to purchase professional liability insurance you will quickly discover there are multiple options available with various costs and coverage levels. The hard thing to figure out is how insurance companies figure out their professional liability insurance rates for different policies. It is important to find out what determines the pricing of a policy so you can get the best coverage for the best price. The main factors taken into consideration are listed below:
- Risk – This is probably no surprise; the amount of risks involved in the particular medical specialty you work in can highly influence the pricing of a premium. The higher the responsibility and risk, the higher the premium price.
- Experience – The number of years you have worked in the profession and what your employment status is; full time doctors have a higher risk than part time doctors. Part time doctors have a lower chance of claims since they spend less time on the job, and they can be eligible to get up to a 50% discount.
- Group Policies – Group discounts may apply when more than one doctor is covered under the same policy. This is often true even for a small group with two or three physicians and a few nurses.
- Prior Claims – Past claims may increase premium rates for some physicians. Sometimes insurance carriers are flexible with this because they realize not all claims are valid; however, usually if there are multiple claims against a physician there rates are going to be substantially higher than their those of colleagues with no claims history.
- The State Where You Work – State governments play a role in setting medical malpractice rates for their state, so pricing per state can greatly vary. The premiums a doctor pays can depend on specific tort reform laws within a particular state, or even on whether a particular state has a reputation for being litigious or not. And even within a state, rates often vary by county. Urban areas usually have higher medical professional liability rates than rural counties. The classic example is in New York, where physicians in NYC pay some of the highest rates in the country, while in rural upstate New York rates are much, much lower.
As you can see, there are many factors that go into determining medical malpractice insurance rates, and what we’ve listed are just a few of those factors. When deciding on a policy and before choosing the cheapest one available, it’s in your best interest to consult with a qualified broker to ensure you are getting the best quality policy that will cover your needs and protect your practice. At eQuoteMD we are able to access multiple carriers, compare multiple quotes and guarantee you superior customer service from our experienced brokers. We are here to supply you with affordable pricing and the best quality plan for your needs. Get a quote today and we’ll show you how we can save you money and provide you with free services and extended coverages for free.