Tips To Lower Your Expenses On Medical Malpractice Insurance
Health professionals spend a fortune on medical malpractice insurance to protect themselves against lawsuits. If there’s a chance you could enjoy lower insurance rates while still getting covered against malpractice claims, wouldn’t you grab it? So, how do you settle on the best insurance prices while still getting the best coverage?
The following are quick tips on how to lower insurance rates for your medical services:
- Shop around for the most reputable insurers.
- Pick the right coverage level.
- Consider a higher deductible.
- Implement risk management strategies.
- Maintain a clean claims history.
- Join a group insurance program.
- Grab discounts and incentives.
This post is a more detailed guide on how you can get better insurance rates for your medical malpractice insurance. Let’s dive in!
1. Shop Around for the Best Insurance Providers
The first step to lower your malpractice liability insurance costs involves researching and comparing different insurers. Consider the following factors:
- Reputation: Search online and also ask friends and colleagues for reviews and ratings of insurers to get an idea of their satisfaction levels.
- Coverage options: Evaluate different coverage plans provided by various companies to see which one meets your needs.
- Costs: Take note of the fees charged for different policies, including any hidden charges or deductibles.
Online tools can also be handy when comparing insurance providers and their plans. Consider consulting an experienced broker who can help you navigate the different options and find the best coverage for your budget.
2. Choose the Right Coverage Level
It’s essential to pick a coverage level that adequately protects you against potential medical malpractice losses without overpaying for unnecessary coverage. Choosing the right level of coverage depends primarily on your individual needs and risk tolerance.
Evaluate Your Practice’s Risk
The first step in choosing the right coverage level is to assess your practice’s risk. Consider factors such as the type of medical services you provide, the number of patients you see, and any previous malpractice claims or lawsuits against you. These can all impact your potential for future losses.
It will be beneficial to go for higher coverage limits if you work in a high-risk specialty, such as neurosurgery or obstetrics. You want to be adequately protected in case of a lawsuit.
Alternatively, if you work in a low-risk field, such as family medicine or dermatology, it makes sense to pick a lower coverage level without compromising your protection.
For example, would you pay for your own insurance as a nurse if your clinic agrees to put you under its liability insurance? Find out if a nurse practitioner can work under clinic liability insurance.
Understand the Different Coverage Options
Medical malpractice insurance typically offers two types of coverage: claims-made and occurrence. Before choosing your coverage level, it’s essential to understand the differences between these options.
- Claims-Made Coverage: This type of coverage only covers claims filed during the policy period. If a claim is made after the policy expires, it will not be covered. However, you can purchase extended reporting periods (ERPs) to cover any potential future claims.
- Occurrence Coverage: This type of coverage covers any claims arising from when the policy was active. It doesn’t matter when the claim is filed, unlike claims-made policies. So, you don’t need to buy ERPs for occurrence policies.
Work with flexible insurers who’ll work with you to tailor your coverage to suit your specialty, region, and practice size.
3. Consider a Higher Deductible
We keep getting this question; “How do I lower my insurance premiums?”
One of the obvious answers we always give is, “Consider a higher deductible.”
A medical malpractice insurance deductible refers to the amount you agree to cop out your own money before your insurer pays for a claim.
Case Scenario
For instance, if your policy has a $10,000 deductible and a lawsuit is filed against you, you’ll be required to pay that amount first before your insurance kicks in.
Usually, choosing a higher deductible will result in lower premiums because the insurer’s risk exposure reduces. However, it may not always be the best option for everyone.
If you have enough savings and can afford to pay for potential claims out of pocket without hurting your finances significantly, then opting for a higher deductible may be beneficial. It can save you money on premiums in the long run, especially if you don’t have frequent claims.
However, it’s not a wise choice if a high deductible could potentially bankrupt you or make it challenging to cover legal fees and settlements in case of a claim.
4. Implement Risk Management Strategies
Insurance companies are always looking to make a profit, and they can only profit when you pay premiums and never get into any medical malpractice lawsuits. So, they’re likely to charge you high rates if they deem your practice to be high risk.
To reduce your premiums, you should implement risk management strategies to lower the chances of a lawsuit being filed against you. These can include:
- Regularly reviewing and updating protocols and procedures.
- Investing in staff training and education.
- Maintaining open communication with patients.
- Practicing good record-keeping and documentation is also crucial. In case of a claim or lawsuit, detailed records can help prove your innocence or make it easier for your insurance company to negotiate on your behalf.
Maintaining strong relationships with your colleagues and referring patients when necessary is essential. This way, if a patient files a claim against the referring physician, there’s evidence that you acted in the patient’s best interest.
Lastly, keeping up with any changes and advancements in your field can also help minimize risks and potential lawsuits. Continuing education and attending conferences or workshops can also benefit you in the long run.
5. Maintain a Clean Claims History
Again, insurance companies are there to protect you from potential claims and lawsuits, but they’re also a business that needs to make a profit. One way insurance companies calculate your premiums is by looking at your claims history.
A clean claims history means you haven’t had any medical malpractice lawsuits or settlements filed against you. It also shows that you have diligently practiced medicine without major mistakes or negligence.
In the section above, we discussed implementing risk management strategies to lower the chances of a lawsuit being filed against you. These strategies can also help maintain a clean claims history.
Another way to ensure a clean claims history is to regularly review and update your insurance coverage. As your practice grows, your insurance needs may change, and it’s vital to have adequate coverage in case of potential claims or lawsuits.
It’s also essential to promptly report any incidents or potential claims to your insurance provider.
6. Join a Group Insurance Program
Joining a group insurance program can also help lower the cost of malpractice insurance. Group programs often have negotiated rates with insurance companies, meaning you can get a more affordable premium.
Additionally, joining a group can provide access to resources and support from other healthcare professionals who understand your field’s unique risks and challenges.
This network can offer valuable advice and guidance on risk management strategies that have worked for them.
The group may also provide access to educational opportunities and training programs, helping you stay current on best practices and reduce your potential for malpractice claims.
Furthermore, being part of a group insurance program can provide added protection in case of a large claim. Many programs offer coverage beyond the limits of individual policies, giving you an extra security layer.
Before joining a group insurance program, carefully research and compare it with others. Consider the reputation, coverage options, and any additional fees associated with membership.
7. Grab Discounts and Incentives
Insurance adjusters and brokers offer incentives to policyholders that proactively reduce their risk of malpractice claims. Some may provide a discount for completing risk management courses or implementing safety protocols in your practice.
Ask your insurer about any available discounts and incentives; they can significantly lower premium costs.
Additionally, some states have special programs that can help you save on malpractice insurance costs. For example, Texas offers a state-funded program called the Texas Medical Liability Trust (TMLT) for physicians. This program offers more affordable coverage options and risk management resources.
8. Regularly Review and Update Your Policy
As your practice evolves and grows, it’s essential to review and update your malpractice insurance policy regularly. Changes in services offered, staff, or location may impact your coverage needs.
Furthermore, it’s essential to stay informed about changes in the legal landscape that may affect malpractice claims. For example, new laws or court cases related to medical malpractice could impact the coverage or premiums of your policy.
Stay aware of any updates from your insurance provider, and be proactive in reviewing and updating your policy as needed. It will ensure you have adequate coverage for potential risks at all times.
We’re Your Best Cover!
Choosing the right malpractice insurance provider is a crucial decision for healthcare professionals. You need a reliable, trustworthy company that understands your unique needs and provides comprehensive coverage at an affordable price.
At Professional Insurance Plans, we specialize in providing malpractice insurance for healthcare providers across Kentucky and beyond. Our team has an edge with over 75 years of experience in the industry. We can help you navigate through the complexities of malpractice insurance.
We’re best placed to answer any questions you may have, such as, “Is malpractice liability insurance tax deductible?“