Michigan Malpractice Insurance
Table of Contents
- How to buy malpractice insurance in Michigan.
- How to save money on your malpractice insurance.
- How much does medical malpractice insurance cost in Michigan?
- Medical malpractice requirements in Michigan.
- Best medical malpractice insurance companies in Michigan.
- Why partner with Cunningham Group in Michigan?
- Historic medical malpractice insurance rates in Michigan – since 2000.
- History of malpractice insurance in Michigan.
- Resources for Physicians.
Michigan Malpractice Insurance
The Michigan malpractice insurance landscape is very stable with many carrier options for physicians. No single carrier dominates the Michigan market, so there is lots of competition to help keep premiums competitive.
Our 2021 Physician Buyers Guide for purchasing malpractice insurance in Michigan gives you the information necessary to obtain the strongest, most financially secure policy at the best price. When shopping for coverage, you need a full view of the Michigan marketplace to find the company that best fits your situation. Choose a broker that can offer multiple quotes from all the major malpractice insurance companies in Michigan.
How to buy malpractice insurance in Michigan.
The best way to buy malpractice coverage is to work with a reputable malpractice insurance broker in Michigan who can generate multiple quotes. Your broker will walk you through the lengthy insurance application and underwriting process. Click to get medical malpractice insurance quotes from every major Michigan malpractice insurance company.
Typically, the malpractice insurance purchasing process goes like this:
- Submit your information for your free medical malpractice insurance quote from every major insurance company in Michigan.
- One of our veteran malpractice insurance agents who specializes in the Michigan market will contact you to learn more about your specific needs.
- We shop your coverage to every major insurance company in Michigan.
- We present you with a number of insurance quotes and give you the information necessary to make an educated and informed decision. Don’t worry. We’re here every step of the way, helping you get the best price with the best company.
- At renewal time, we restart the process of shopping your coverage among every major carrier to keep your policy properly priced.
How to save money on your malpractice insurance.
- The easiest way to save money on your medical malpractice insurance policy is by working with a broker who has the access to generate quotes from every major insurance company, offering an accurate view of the marketplace. As one of the top brokers in Michigan, we can guide you through the application and underwriting process so you’re confident you secured the best price with the right insurer for your situation.
- The most common limits in Michigan are $200,000/$600,000. Limits of liability play a major role in determining the overall cost of your policy. Some companies will offer lower limits to save you money. We don’t recommend this. We want your risks fully indemnified so you never have to pay an award out of pocket. Let us save you money by shopping your coverage rather than skimp on protection.
- Check out our 7 secrets your medical malpractice insurance agent won’t tell you page to get insider information on buying coverage in Michigan.
How much does medical malpractice insurance cost in Michigan.
Rates in Michigan vary greatly dependent ipon where you practice. For example, a general surgeon in Detroit (Wayne County) could see an annual malpractice premium of $55,000. That same general surgeon could move their medical practice to Kalamazoo (Kalamazoo County) and see their malpractice premium drop more than half to $19,500. This is one of the many reasons it’s important to work with an insurance agency that specializes in medical malpractice insurance. Below are mature, base rates with no credits or discounts. We typically get our clients a 30-50% reduction from these rates:
- Internal Medicine Average Rate $6,727
- General Surgeon Average Rate $27,876
- OB/gyn – Average Rate $30,578
The cost of your malpractice coverage can vary greatly due to a number of factors, including your claims history, the type of patient interactions you have, the insurance company you are placed with and more. Cunningham Group created this premium estimation tool by drawing from its database of thousands of physician clients. Below are five malpractice estimation premium buckets to gauge how expensive your coverage should be. The buckets are numbered 1 to 5 — with #1 being the least expensive and #5 the most costly.
Medical malpractice requirements in Michigan.
Limits of Liability: The most common limits of liability in Michigan are $200,000 per claim with an annual aggregate cap of $600,000.
Most hospitals require a physician carry malpractice insurance prior to granting admitting privileges. Some of the hospital systems requiring this include, but are not limited to: Henry Ford Hospital in Detroit, Sparrow Hospital in Lansing and the University of Michigan Hospitals in Ann Arbor.
Best Medical malpractice insurance companies in Michigan.
- Medical Protective
- The Doctors Company
- Michigan Professional Insurance Exchange
Why partner with Cunningham Group?
Partnering with Cunningham Group will give you a full view of the Michigan marketplace. We can get you quotes from all the major insurance companies and help you choose the policy that best fits your needs and budget. Our veteran insurance agents average 10+ years of industry experience. Let us help you secure medical malpractice insurance quotes from every major insurance company in Michigan.
Historic Medical Malpractice Insurance Rates in Michigan for Physicians.
Brief History and other important facts of medical malpractice insurance in Michigan.
Michigan enjoys a stable medical malpractice landscape with many options for physicians. No single carrier dominates the Michigan market, so there is lots of competition, which has helped keep premiums from getting too high. Additionally, many successful tort reforms have been implemented, further stabilizing the Michigan marketplace. Traditionally, Michigan physicians have carried limits of $200,000/$600,000, but many are now switching over to higher limits of $1 million/$3 million.
Tort Reform in Michigan
Michigan’s stable medical liability climate can be put down to several tort reforms that the Wolverine State has passed since the mid-1980s. Prior to these reforms, Michiganders were experiencing a serious access-to-healthcare dilemma. Medical malpractice claims in the state had spiraled upward from ten per 100 doctors in 1979 to 25 per 100 by 1985—an increase of 150 percent in just six years. From 1970 to 1984, the large Detroit metro-area counties of Wayne, Oakland and Macomb had seen their malpractice filings jump 1,100 percent. Medical professional liability insurance premiums had also doubled between 1980 and 1984; growing even faster in the higher-risk specialties. In response, Michigan physicians were shying away from high-risk procedures. In 1985, 42 percent of Michigan family physicians reported they had either ceased delivering babies or reduced the number they delivered; an even higher percentage of doctors reported that they had cut back on surgery and treating patients likely to require intensive care.
In response to cries from the healthcare community, the Michigan legislature passed Public Act 178, a bipartisan piece of legislation that introduced several major changes to the state’s tort law. The 1986 reforms included venue reform, requiring lawsuits to be filed in the county where the alleged injury occurred; joint-and-several liability reform; a higher standard for expert testimony; and, perhaps most important, a cap of $225,000 on noneconomic damages. Michigan has periodically strengthened these reforms. In 1993, Public Act 78 was passed, which increased the non-economic damages cap to $280,000, but also got rid of many exceptions to the cap, which had been left in the 1986 reforms. Public Act 78 also increased standards for expert testimony, required all medical malpractice plaintiffs to file an affidavit of merit and permitted binding arbitration for medical malpractice cases that involved damages not in excess of $75,000. Michigan’s noneconomic damage cap has increased periodically to keep pace with inflation. It currently stands at $438,800 for most injuries and at $783,500 for certain permanent disabilities, such as permanent cognitive disability or paralysis.