Six Mistakes That Could Drive Up The Costs Of Your Malpractice Insurance

One of the most important things you need to do as a medical care provider is choose a medical malpractice insurance policy. Medical malpractice insurance premiums can be a significant expense. Many medical professionals make malpractice insurance mistakes that drive up their insurance costs.

The following are six mistakes you can avoid to keep your malpractice insurance costs under control. 

Not using a broker to explore various options

It's best to work with a broker who can help you explore various options before you select a particular malpractice insurance policy. Brokers can provide information on policies and premiums from numerous providers. They can also provide advice and answer questions you have on coverage and costs. 

Being unaware of discounts or credits you're eligible for

Insurance providers offering malpractice coverage typically offer certain discounts and credits to physicians. Discounts are available for things like being a member of certain professional associations or taking CME courses to attain credits. It's also sometimes possible to become eligible for discounts if physicians can present documented risk-management training accomplishments. 

Auto-renewing a policy after your term is over

It's pretty typical for physicians to simply auto-renew their existing policy when the term is up for the sake of simplicity. However, it's best to review your policy and look into other options when your term is ending rather than simply automatically renewing. This way, you can determine if there is a more cost-effective option available before committing to another year of coverage with the same policy. 

Purchasing a policy with no deductible

Deductibles are a typical feature of most types of insurance policies like home and auto insurance coverage. They're generally less common with medical malpractice policies. However, opting for a policy with a deductible could be a good way to save on malpractice insurance premiums. When you pay a deductible, you're covering some of the costs yourself rather than having your insurance cover all expenses when you deal with malpractice issues. Insurance providers therefore typically charge less in premiums on policies where the policyholder has agreed to pay a deductible. 

Failing to give tail insurance costs adequate consideration

Tail insurance is coverage for claims that are made after your policy is over. Tail insurance is an important feature of malpractice insurance because a malpractice lawsuit won't typically happen until some time after the events that cause it. Make sure you evaluate tail insurance costs along with basic premium costs when you're considering various malpractice insurance policy options. 

Making payments quarterly

As with other types of insurance, malpractice insurance is typically less expensive if you pay your entire policy premium upfront rather than making monthly or quarterly payments. You should therefore avoid making quarterly payments if you have the funds available to pay for your policy upfront. 

Contact a company that offers medical malpractice insurance for more information.