What to Do when Non-renewed for Medical Malpractice Insurance
(continued)
In the previous section, we covered Step 3 and Step 4, which examined finding other coverage, and examining that coverage to be sure it’s right for you. In this final installment, we’re looking at how best to pay for the new coverage, and looking at the long-term gameplan for your practice:
Step 5: PAYING FOR YOUR COVERAGE. If you are unable to secure replacement coverage from a traditional carrier (such as The Doctors Company or Medical Protective), you may need to consider the higher cost (usually 30-60% more) of obtaining coverage from a reputable, non-traditional carrier (such as Evanston, Admiral, General Star or Lloyds of London). That’s where paying for the policy comes into play. The ability to pay in installments is important to many practices. Unlike traditional medical professional liability insurers (which offer convenient payment plans,) non-traditional insurers usually require the annual premium up front. You’ll want to explore your financing options from your bank as well as the insurance premium financing options offered through your broker. Generally, insurance premium financing requires a 30% down payment, but they offer a fairly competitive interest rate.
Step 6: CONSIDER YOUR LONG TERM PLAN. Once the fire is put out, take a little bit of time to look at the bigger picture. The longer term goal is maintain insurance that suits your overall needs, in terms of expense as well as protections provided. Here a few issues to consider:
- Will you need retirement tail in 5-10 years? Consider that Non-traditional companies usually do not offer free retirement tail (protection for cases which may be filed against you after you retire).
- Can you make changes to your practice to improve your insurability? For example, if you were non-renewed due to a claim involving a certain procedure, ask yourself if the practice revenue for that procedure is worth the additional cost you are now paying for insurance.
- Can you take steps to illustrate your desire to improve patient safety? Patient safety training and improved documentation procedures can go a long way to showing insurance companies you are serious about eliminating or reducing risk in your practice.
Receiving a non-renewal notice can be frightening and time-consuming. A qualified independent insurance broker is your best resource and friend in such a harried circumstance. Take a few deep breaths, then give Presidio Insurance Solutions a call. We know how best to handle situations such as these, and we’re glad to be able to help!
- Medical Malpractice Insurance Non-Renewal Series
- 1. Part One
- 2. Part Two
- 3. Part Three
- 4. –>> Part Four – Viewing