by Kelly Reed


All Medical Professional Liability policies areNOTcreated equal.  The value you receive is often related to the dollars you spend.  While we understand in today’s healthcare climate is challenging at best, price should not be the only factor when considering what policy is right for you.  A Cheap Medical Malpractice policy may be what you are looking for, but upon further review is not always what a practice needs. Following are four things you should know about your medical malpractice carrier:

Claims Management – Nothing is more important that the reputation of a practice. Questions to ask to better understand who is defending you:

  • How many jury trails has your carrier had Nationally?  In Michigan?  In your County?
  • What % of money does the carrier spend on defense costs (attorney fee’s, court costs, expert witnesses, etc…) compared to payments to a plaintiff?
  • What % of claims is closed without an indemnity payment (payment to a plaintiff)?  This is important as payments to plaintiffs means a physician will be reported to the National Practioners Data Bank.

Risk Management Resources- Healthcare Quality and Risk initiatives have been a driving factor in reducing the number of malpractice claims by reducing risk and improving care. What resources does your carrier provide:

  • What educational opportunities are available to my practice? Are CME credits available? Examples include: Live & online seminars, physician committees, white papers, newsletters, podcasts, blogs, etc….
  • Will my carrier come onsite to my practice to review records, policies, procedures and offer recommendations to get my practice to a best practice level?
  • Will my practice have a dedicated risk management consultant that I can contact by phone, email, or video chat?
  • Are resources available to both physicians and my officer personnel?

Financial Stability – Due to the long tail and volatility of the Medical Malpractice marketplace, financial stability is a must have as policy holder.

  • What is your carrier’s AM Best rating?
  • What is your carrier’s Premium to Surplus ratio?
  • How experienced is your carrier in your city, county, state?
  • Am I confident my carrier will be here to protect me not only during my carerr, but after I exit the practice of medicine?

Policy – Whether it is a captive, risk retention group, commercial insurance carrier, each policy will have unique attributes.

  • What types of coverage do you offer (Claims Made, Modified Claims Made, or Occurrence?
  • Are defense costs within or outside my limits of liability
  • Does my policy provide Cyber Liability or Private | Network Secruity covage?
  • Does my policy provide coverage to have legal counsel present in state licensing investigations or Medicare/Medicaid audits?

All policies, carriers and agencies are not created equal.  Cheap Medical Malpractice policies are not always the answer. Meet and hire an advisor who understands your 3, 5, 10 year strategic plan.  Identify the risks (insurable & non-insurable), prioritize the risks by the dollars they cost your practice, and hire an insurance carrier who will get your practice down your strategic path.  To learn more about the Medical Malpractice Solutions that VAST can provide, contact Kelly Reed | 906.315.7227 | kellyr@vastsolution.com.

The enrollment period for 2023 individual and family health plans ended on January 15. Please contact us to determine if you qualify for a special enrollment period.

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