Medical Professional Liability (MPL), Medical Malpractice Insurance (Med Mal), and Healthcare Professional Liability, are often used interchangeably.  Sprinkle in the insurance jargon and we have a difficult formula to understand and is not always presented in a clear way.  With the ever-changing complexities in healthcare, the last thing you want is confusion when contemplating decisions on how to best defend and protect yourself.   When it comes to choosing the right company, product, design, or program, we fully understand the sensitivity and delivering on the trust of protecting you.

Who and What does MPL cover?   Medical professional liability insurance is a type of professional liability insurance which protects physicians and other licensed health care professionals (e.g., dentist, nurse) from liability associated with wrongful practices resulting in bodily injury, medical expenses, property damage, mental anguish, as well as the cost of defending lawsuits related to such claims.  MPL can be purchased for individual personal liability, group liability, corporate or entity liability, and for employees who render services under direct supervision.

NewDay Risk Medical Professional Liability Solutions

As part of our strategic process, we keep in mind the importance of leveraging buying power and developing an efficient process for you and or your busy staff.  You have direct access to our team of industry specialists who custom design solutions for your most complex needs.

You will find our advantages include an outstanding team with the pedigrees and years of experience, a wealth of available resources including access to innovative ideas and products, technological capabilities, a demonstrated expertise, and best of all – OPTIONS

We have solutions for physicians’, hospitals, medical clinics, healthcare systems, surgery centers, nursing homes, assisted living facilities, dental offices, and specialty clinics within the healthcare industry.

Medical Professional Liability in Plain-Speak

We get asked almost every day, so let’s start with the Types of MPL Policies that are available to most healthcare professionals.

There are two basic forms or policies for Medical Professional Liability (MPL); A claims-made policy and an occurrence policy form.  The critical difference between the two forms has to do with the reporting or notification of claims, when the incident/s took place, and if there is coverage.  As a general rule, the occurrence coverage form offers superior protection.

Occurrence Provides coverage for a claim that occurred during the policy period regardless of when the claim is reported to the insurance company.  There is no Need to purchase an extended reporting policy (TAIL) once the policy ends.

Claims Made provides coverage for a claim that occurred after inception (Retro Date) of policy and is reported to the insurance company while the policy or any replacement is still in force. 

I’m ready to eliminate overcharges!

Looking to Change or Switch Insurance Companies? – Not a problem

Looking for better service, education, training, unique products, or a substantial savings?   Switching or changing insuring companies is not complicated, and it certainly shouldn’t be fearsome, as some may want you to believe.   You are not a prisoner or locked into one company for life.

To change or switch insurance companies with an existing claims made policy, you can do and accomplish the following:

  • Maintain your original effective date (retro date) to avoid and eliminate any possible lapse in coverage.
  • The new insurance company can pick up the history of the prior company, going back to the original date (also referred to as Nose Coverage) = no gap in coverage.
  • Buy an extended reporting endorsement (tail coverage) from the existing company and establish a new retro date with the new carrier

Making a change with an existing Occurrence Coverage Policy

The occurrence policy provides coverage of an insured for incidents that occur while the policy is in effect, regardless of when:

  • The incident is reported to the insurer
  • A Claim is filed

There is no need to obtain additional policy extensions when moving to a new insurance company with an existing occurrence policy = Easy to do.

Craig W.
I have had the pleasure of working with New Day Risk the past 3 years with our malpractice insurance. The past year, their team put our policy out to bid and helped direct a comprehensive analysis with various carriers. We ended up with significant financial savings and some nice enhancements to our policy as well.

Craig W.

Clinics and Medical Affairs

Making a change with an existing Occurrence Coverage Policy

The occurrence policy provides coverage of an insured for incidents that occur while the policy is in effect, regardless of when:

  • The incident is reported to the insurer
  • A Claim is filed

There is no need to obtain additional policy extensions when moving to a new insurance company with an existing occurrence policy = Easy to do.

Available Discounts

Not all insuring companies are created equal.  There are several premium discounts, reductions, and programs available, and contrast by company.  Here are a few discounts that you should be aware of:

Risk Management Discount – Could be offered by the insurance company for those who participate in risk management education.

New Doctor Discount – A discount in premium for doctors who are new to practice – the discount is generally applied for the first 3 years.

Volume or Premium Discount – Offered to groups or entities based on the size of the total premium or total volume.

Part-Time Hours – Yes, part-time hours are eligible and can receive a discounted premiums vs those working full-time.

Claim Free Discount – Do you have a clean loss history or experience?  Then you should be rewarded!  The longer you are in practice without a claim, the greater the discount.

Other discounts or reduction of premiums that are available; Deductibles, EMR system being used, Group discounts, and Dividends.

Med Mal – Premiums and Discounts

What factors go into establishing my premiums and what discounts are available to me?

Premiums start with the Information gathered on the application.  Are you diligent in updating and keeping the information accurate and current?   How often is your agent meeting with you to update the information on the application/s?

The type of policy (occurrence v claims-made) is the initial basis of determining a premium.  Claims-Made policies generally have a graduated scale with premium increases each year coverage is in force until it reaches the mature rate – generally in five years of continued coverage.   In addition, when the claims-made policy is cancelled, a reporting endorsement (tail coverage) is usually purchased to cover any future claims after the policy ends.

Occurrence policies do not have the year over year gradual increases, mature rate, and do not require an extended reporting endorsement or tail coverage.   Not all companies offer occurrence form policies for medical professional liability and the pricing varies by company.

The specialty of practice has the greatest influence on the premiums charged by insuring companies.  Claim data and payment history (by classification or specialty) are contemplated when determining the rates and premiums charged.

Is it possible that two physicians in the same classification or specialty have different premium amounts?  Absolutely.  The type of procedures performed, claim history, geographic location, the limits of insurance purchased, employment status, or performing higher-risk procedures will all have an impact on the premium.

I’m ready to eliminate overcharges!

Insuring Limits – How much insurance should I purchase?

A question that we hear a lot – “what should our limits be?” The appropriate policy limits will depend on several factors varying by the insuring company, the state, and determined by specific practice or specialty.  Qualified agents, brokers, and insuring companies can all assist in recommending suitable limits for you.  A consideration of appropriate limits may include:

Limits historically purchased with loss or claim history

Geographic location – the regulatory and legal climate in which you practice

Exposures created by organization’s business strategies

Policy limits can either include or exclude defense costs (preferred)

Deductibles and SIRs (self-insured retentions)

MPL – Related Coverage

What is Locum Tenens coverage?  When a healthcare employer faces temporary staffing shortages due to vacancies, illness, or other causes, they will hire locum tenens physicians and other part-time clinicians to fill vacancies.  Locum Tenens coverage provides the temporary coverage to the policy holder for those positions being filled.

What is Slot Coverage?

Slot coverage is based on a full-time equivalency (FTE).  The premium for the “slot” is based on how many hours, collectively, part-time physicians will be working in a given period of time.

 

For example, if you had four part-time physicians each working 10 hours a week (40 total hours), there could be one FTE slot.  Premium for that slot is comparable to One full-time physician.  There are pricing advantages and flexibility compared to having several part time policies.

 

Our MPL Insurance and Risk Management services are tailored specifically for your needs. We are able to lower costs by focusing and mitigating the individual risk and by partnering with the industry leaders in Medical Professional Liability Insurance.  We are experienced in negotiating the best possible terms and providing transparency of all options.

 

Contact Us for more information on medical liability insurance pricing and options.