Why Doctors Should Choose the Best Medical Malpractice Insurance

Choosing the best medical malpractice insurance company is key to protecting your medical practice. An A-rated insurer indicates strong financial stability, ensuring your insurer can cover large claims. This reliability is essential when facing potential liabilities, giving physicians peace of mind that their coverage provider is financially sound and capable of handling claims when needed.

This guide includes everything you need to know about finding the best medical malpractice insurance, from why A-rated insurance matters to avoiding common mistakes when picking a provider.

What Is Medical Malpractice Insurance?

Medical malpractice insurance is a type of coverage designed to protect healthcare providers from financial loss in the event of a lawsuit. If a patient sues for negligence, misdiagnosis, or an error during treatment, this insurance helps cover legal defense costs, settlements, and any judgments that result from the claim. It’s specifically tailored to the risks healthcare professionals face daily.

There are two main types of medical malpractice insurance: claims-made and occurrence-based. 

A claims-made policy covers claims made during its active period, while an occurrence-based policy covers incidents during the policy period, regardless of when the claim is filed. Both types provide financial protection, but the key difference lies in when the claim is made and how coverage extends after the policy ends.

Why Choosing the Best Malpractice Insurance Company Matters 

Opting for a top-rated malpractice insurance company is necessary for physicians seeking reliable coverage. An A-rated insurer signifies financial strength and stability, ensuring it can handle large claims and provide dependable protection in case of litigation. 

These companies are evaluated for their ability to meet obligations, giving physicians peace of mind that their insurer can process claims efficiently and cover potential liabilities, no matter how complex. Choosing an A-rated insurance provider helps safeguard your practice and ensures long-term security.

The Risks of Choosing a Low-Rated Insurance Company

Choosing a non-“A”-rated malpractice insurer can expose physicians to significant risks. Low-rated insurers may delay claims processing, making it more difficult for doctors to resolve disputes in a timely manner. Additionally, these companies may lack the financial stability to cover substantial legal fees or settlements, risking physicians’ financial security. 

Without the backing of a strong, reliable insurance provider, physicians may face long-term consequences, including higher out-of-pocket expenses and the potential for coverage gaps. Low-rated malpractice insurance policies can also lead to frustration and increased liability exposure, which can damage your practice’s reputation and operations.

How the Best Malpractice Insurance Provides Better Coverage 

When it comes to malpractice coverage, “A”-rated companies offer significant advantages. These insurers provide faster claims resolution, a crucial factor for physicians who want to avoid prolonged legal battles. They also offer better legal defense for doctors, which can make a big difference in the outcome of a malpractice case. 

By choosing the best medical malpractice insurance, physicians gain the peace of mind knowing their insurance company ratings reflect a commitment to protecting doctors financially during a claim. These companies are also better equipped to handle large malpractice lawsuits, ensuring that the doctor’s financial losses are minimized and their professional reputation is upheld.

VIDEO: Why is an “A”-rated company important when buying medical malpractice insurance?

Join us on the latest episode of Healthcare Matters as we sit down with Richard J. Rymond, a trial attorney at Reminger Co., LPA, who specializes in medical, dental, and other forms of professional, commercial, and general liability. In this episode, we ask him to explain what physicians should do if they are facing a liability claim and they receive a records request from the patient or a third party. Rymond details the appropriate response and pitfalls facing physicians, such as wanting to alter or clarify records, dealing with records requests from patients who have not paid for services, and whether or not it’s appropriate to consult with other physicians about a records request.

Transcript

“AM Best is the independent rating agency that in fact rates all insurance companies. An a-rated carrier is one of the top, and actually the top rating that can be given to an insurance company. These highly rated companies are basically the companies that have the financial strength and resources to pay all their obligations, their policy and contractual obligations. So from that standpoint, essentially it’s the ability to pay claims and to keep their policies in force.”

Richard J. Rymond has been with Reminger Co., LPA since joining the firm as a law clerk in 1980. He is the Dental Liability Group Practice Co-Chair, and has tried more than 100 jury trials, focusing on medical and dental liability, commercial liability, professional liability and general liability. He is a regular speaker on risk management programs for physicians, dentists and allied health professionals and serves as an assistant professor at the Case School of Dental Medicine.

Richard J. Rymond has been with Reminger Co., LPA since joining the firm as a law clerk in 1980. He is the Dental Liability Group Practice Co-Chair and has tried more than 100 jury trials, focusing on medical and dental, commercial, professional, and general liability. He is a regular speaker on risk management programs for physicians, dentists, and allied health professionals and serves as an assistant professor at the Case School of Dental Medicine.

4 Best Medical Malpractice Insurance Trends to Look For

The healthcare world continues to evolve, and so does malpractice insurance. There are a few key trends that are shaping the industry and what you can expect from your coverage:

1. Telemedicine Liability

Telemedicine has grown significantly, especially since the pandemic, and it’s here to stay. However, the convenience of treating patients remotely also brings unique risks. For example, you may encounter licensing issues if you provide care across state lines, which could complicate your coverage. 

Technology errors, such as misdiagnoses due to software glitches, can also result in claims. Lastly, the rise in digital healthcare increases the risk of patient data breaches, making cyber protection crucial in your policy.

2. Cyber Liability Coverage

As more patient records go digital, cybersecurity has become a major concern. The best medical malpractice insurance policies now include cyber liability protection, covering issues like data theft, breaches of HIPAA compliance, and helping you respond to a cyberattack. 

If your practice experiences a data breach or a hacker gains access to sensitive patient information, having this coverage is essential to avoid devastating financial consequences.

3. AI in Medicine

Artificial intelligence is playing an increasingly larger role in healthcare, from diagnostic tools to treatment plans. But with AI involvement comes questions about responsibility. If an AI system makes the wrong call, who is liable—the doctor or the technology? 

Insurance companies are working on addressing these questions, and guidelines for AI-related medical malpractice are still being developed. As AI continues to evolve, it’s important to understand how your policy will handle AI-related claims and how to document AI-supported decisions properly.

4. Creative Risk-Sharing Solutions

For some doctors, the rising cost of malpractice insurance premiums is a real concern. If you’re feeling the pinch, there are creative risk-sharing solutions to consider. Some physicians are turning to captive insurance, which means setting up your own insurance company, or risk retention groups, where you team up with other providers to pool resources and share risk. 

Another option is self-insurance, where you take on part of the risk yourself. These alternatives can help reduce premiums and provide a more flexible, tailored insurance solution.

How to Choose the Best Medical Malpractice Insurance for You

Choosing the right malpractice insurance doesn’t have to feel like a daunting task. Follow these simple steps to ensure you get the coverage you need:

Know What You Need

Before comparing policies, consider what’s essential for your practice. Consider your specialty—some fields, like surgery or obstetrics, have higher risks than others. Also, consider your practice size, whether you work in multiple states, and your overall risk level. If you’ve had claims in the past, you’ll want to make sure your coverage is adequate to handle any future risks.

Research Your Options

Start by looking at the financial ratings of different insurers. Stick to those with an A rating or better from AM Best, as these companies are financially stable and can meet their obligations. Compare policy types, including claims-made versus occurrence policies, and make sure you understand what’s included in the coverage, such as cyber protection or tail coverage, if necessary.

Compare Policies

Once you’ve narrowed down your options, dig into the specifics of each policy. Ask questions like: What are the coverage limits? What’s excluded from the policy? Are defense costs covered outside the policy limits? Make sure the policy provides the right protection without unnecessary gaps.

Talk to a Malpractice Insurance Broker

An experienced broker can be invaluable in searching for the best medical malpractice insurance. Brokers, like those at Cunningham Group, can explain your options in detail, help you compare quotes, and ensure you get the best coverage tailored to your needs and budget.

Why You Should Review Your Policy Every Year

Even if you’ve had the same malpractice insurance for years, reviewing your policy annually is important. Here’s why:

• Your practice may have changed: You might have added new services, hired more staff, or even moved to a new location. These changes can impact your insurance needs.
• Laws and regulations evolve: Healthcare laws are constantly being updated, and insurance policies must reflect these changes.
• You might qualify for discounts: You could become eligible for new liability coverage discounts based on your claims history, specialty, or other factors.
• Technology brings new risks: With advancements in telemedicine, AI, and cybersecurity, new risks emerge that might not be covered under your existing policy. A yearly review helps you stay ahead of these risks.

Choose Cunningham Group to Protect Your Practice 

Protect your practice by choosing A-rated malpractice insurance with the right coverage for your needs. At Cunningham Group Insurance, we specialize in helping physicians compare the best medical malpractice insurance policies to find the best fit for your practice. Whether you’re looking for comprehensive coverage or need guidance on the claims process, we’re here to assist.Reach out today for expert guidance or to get a malpractice insurance quote. Let us help you navigate the complexities of medical malpractice insurance and secure the protection you need. Consult with a malpractice insurance broker who understands your unique needs and ensures you get the best policy terms.