It’s certainly no secret that medical malpractice premiums have been on the rise for some time now, and for some doctors they have really shot up. In fact you may have already heard some of the horror stories of certain specialty practitioners who are paying upwards of $250,000 in premiums annually.
So then just what is it that the insurance companies are looking at to determine your costs, and are there things that you can do, or not do to effect them? Also what about brokers, or agents? Another common question, is will using an insurance broker, or agent result in higher, or lower premiums in your instance?
Also what’s the difference between occurrence and claims made medical malpractice insurance policies and then what about people like message therapists, and alternative medical practitioners? Do they too need to have medical liability coverage, and if so what are the cost factors that they need to consider?
No doubt about it, but that it is a complicated subject, and approaching it blindly or in a learn as you go fashion can cost you dearly. So while this report is by no means not the final word on the topic, none the less perhaps it can help you to sort out some of these basic above listed questions. So first about brokers, and agents.
Do Brokers and Agents Effect Premium Costs?
The simple answer to whether or not by using a broker or an agent the premiums on any giving policy are increased, or decreased is “no”. The cost of your policy stays the same whether, or not you go through a third party entity. So then why use one in the first place? That answer is simple. They give you quick access to more options, and are also able to lend their expertise on the topic.
So then what about message therapists, and any of the other the various so called alternative medicine or therapy practitioners? As a matter of fact medical malpractice insurance coverage is required for message therapy, but the good news is that it’s very cheap. About $200 per year for $1000,000 in coverage.
Do Alternative Medicine Practitioners Need Coverage?
As for the assortment of other genres of alternative therapies, liability coverage is not a requirement. However; for anyone involved in them, getting coverage is definitely the smart move, and it is available. In fact these types of specialty coverage plans are incredibly cheap.
Insurance carriers that offer alternative medicine liability policies even have base level $10,000 coverage plans that cost next to nothing, so it’s incredibly cheap insurance for protection against opportunists, and nut cases. Remember; all it takes is for someone to file a claim, and a practitioner is at the bare minimum stuck with legal costs.
As for what might be referred to as traditional medical practitioner or specialist and general medicine doctors coverage costs, not surprisingly much of depends on what branch of medicine they are in, yet quite surprisingly what state they’re practicing it in. Now of course there are other variables such as previous malpractice claims, but states, and medical specialties are the big considerations.
Who Pays the Most for Medical Malpractice Insurance and Why?
Now tops on the list for high medical malpractice insurance premiums is OB/GYNs and premium costs for this specialty can run anywhere from $40,000 to $250,000 per year, depending on any number of variables. Basically these numbers are so high though because child birthing tends to be a risky affair, and claims awards can be astronomical. Simple as that.
Now there are just so many different specialties and each one carries its own average risk factors that insurance carriers look to when determining fees. As a general rule however, the less intrusive they are, like general medicine, the lower the cost.
Coverage Costs State by State
Why so much difference in medical malpractice insurance costs in the different states though and by the way, the differences can be huge between a state like Minnesota which happens to be one of the lowest and, say a state like Florida that tops out as one of the most expensive states to obtain coverage in?
The reality, is that even in the various states, rates can and do very region to region, just like automotive collision insurance, and the reasons why they do really quite basic. People in some areas are just more inclined to sue in the hopes of a quick easy jackpot.
Coverage Cost Fluctuations by Region and City
For instance California sits somewhere in the middle in terms of overall medical malpractice insurance coverage costs. Just the same though,
venture into a city like Oakland, or certain sectors of Los Angeles and you’ll find them filled with entire extended families that have been living off the welfare system for generations.
Then head north to areas like Lake Tahoe, Carmel, or the Gold Country of Placer, and El Dorado Counties, and you run into people who will tell you that they “just aren’t the suing type”. Folks who view their doctor as a friend. People who work and own businesses and understand that in the real working world mistakes do happen.
You Don’t Need to be a Rocket Scientist to Figure it Out
That versus the inhabitants of crap-holes like Oakland, and the bottom trolling attorneys that you can see on the TV adds there. To them
even the slightest medical mistake is viewed as a potential ticket to a shiny new Cadillac. It’s the same thing in the low income areas of Florida and Louisiana.
Also do keep in mind that juries are made up of the local inhabitants of a given area and one needs to only refer back to the OJ Simpson murder trial to see the difference that alone can make. He was found not guilty by a jury made up of welfare cases in Los Angeles, yet found to be civilly liable by a second jury in the predominantly upper middle class city of Simi Valley.
Occurrence and Claims Made Policies
Finally there are a few crucial differences between occurrence, and claims made medical malpractice insurance policies. However; the main two are that under an occurrence policy which will tend to be more expensive, the carrier you were covered by when an alleged incident transpired, is the carrier that defends that claim.
A claims made policy will tend to carry cheaper premiums up front, but they tend to increase over time until your policy matures. The second notable difference of this type of policy, is that it covers you for claims made against you, even if the incident occurred prior to you being covered by the policy.