By Matt Gracey of Danna-Gracey This quote relates well to the present state of the medical-malpractice-insurance market.  We are in a very “soft” market, meaning the premiums are low because the frequency of claims against doctors is at a historically low level in most areas.  This in turn has created more competition, looser underwriting practices,

By Tom Murphy of Danna-Gracey In the insurance industry, like life, things tend to be cyclical. After more than seven years of declining rates and premiums, the National Council on Compensation Insurance (NCCI) recently recommended a rate increase of 8.9% in Florida, to take effect on January 1, 2012.   The workers’ compensation line in

Not asking for all of the available credits Most insurance companies offer multiple credits, ranging from discounts for claims-free history and practicing part time to discounts for society membership, and many others.  Never assume your credits are correct and always ask how your bottom-line premium was calculated and if there are any more credits to

Purchasing duplicate coverages Some coverages that another agent may try to say are necessary as part of another type of policy can be included in a malpractice  insurance policy, so make sure there is policy coordination to avoid duplicate expensive coverage. Check back next week for the #1 reason…

Not considering a deductible Taking a deductible basically hedges your insurance bet.  Your agent should perform a 10-year historical deductible analysis each year to give you a decision-making tool for this.    

Not choosing your liablility limits wisely Some doctors prefer lower limits but think that they are restricted from lowering their limits by a hospital, managed-care company, research study group, or the like.  Often, simply negotiating a bit will eliminate these concerns and allow a practice to lower to a much-less-expensive limit.

Not considering purchasing as part of a larger group Purchasing coverage as a small practice is almost never as economical as doing so as part of a purchasing-group program, so find a broker versed in finding you such savings. Follow up for reason #4 next week…  

Not fully understanding your most important coverage features Many extremely costly mistakes can be made while purchasing a complex malpractice insurance policy.  A relatively easy amount of education will go a very long way in protecting your practice from defending an uninsured lawsuit or simply from making costly mistakes comparing policy features like “tails”, “triggers”,

Many medical practice administrators are unaware that most payroll companies and PEOs will allow them to carve out the workers’ compensation coverage in order to join a dividend program. The workers’ compensation coverage is not a priority for payroll companies and PEOs. They are usually willing to work with you in order to maintain the

Not working with the right agent or broker Find an independent agent specializing in malpractice insurance placement for your type of practice setting (solo, group, hospital, nursing home, etc.) and one who has an educational approach versus a sales orientation.  Your agent should be strong enough within the malpractice insurance marketplace to fully and competently