New York Malpractice Insurance
Table of Contents
- How to buy malpractice insurance in New York.
- How to save money on your malpractice insurance.
- How much does medical malpractice insurance cost in New York?
- Medical malpractice requirements in New York.
- Best medical malpractice insurance companies in New York.
- Why partner with Cunningham Group in New York?
- Historic medical malpractice insurance rates in New York – since 2000.
- History of malpractice insurance in New York.
- Resources for Physicians.
New York Malpractice Insurance
The New York malpractice insurance market is unique, expensive and can present challenges for many physicians. New York has not had success in passing meaningful tort reforms, and the state has only three admitted carriers – EmPRO (PRI), MLMIC Insurance Co. and The Doctors Company. There are non-admitted options for physicians, but this is a difficult marketplace.
Our Physician Buyers Guide for purchasing malpractice insurance in New York 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 New York 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 New York.
How to buy malpractice insurance in New York.
The best way to buy malpractice coverage is to work with a reputable malpractice insurance broker in New York 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 New York 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 New York.
- One of our veteran malpractice insurance agents who specializes in the New York market will contact you to learn more about your specific needs.
- We shop your coverage to every major insurance company in New York.
- 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 New York, 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 New York are $1.3 million/$3.9 million. 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 New York.
How much does medical malpractice insurance cost in New York.
Rates in New York vary greatly dependent on where you practice. For example, a general surgeon in NYC (New York County) could see an annual malpractice premium of $57,500. That same general surgeon could move their medical practice to Seneca Falls (Seneca County) and see their malpractice premium drop to $22,000. 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 $5,220
- General Surgeon Average Rate $22,541
- OB/gyn – Average Rate $28,212
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 New York.
Limits of Liability: The most common limits of liability in New York are $1.3 million per claim with an annual aggregate cap of $3.9 million.
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, Montefiore Hospital in the Bronx, Mount Sinai Morningside in NYC, New York Presbyterian/Weill Cornell Medical Center in NYC and Upstate University Hospital in Syracuse.
Best Medical malpractice insurance companies in New York.
- Medical Liability Mutual Insurance Company (MLMIC)
- Physician’s Reciprocal Insurance (PRI)
- Hospitals Insurance Co.
- MedPro RRG
- The Doctors Company
Why partner with Cunningham Group?
Partnering with Cunningham Group will give you a full view of the New York 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 company was founded in New York, and this is where our headquarters is located. We know New York better than any broker in the state. Our veteran insurance agents average 15+ years of industry experience. Let us help you secure medical malpractice insurance quotes from every major insurance company in New York.
Historic Medical Malpractice Insurance Rates in New York for Physicians.
Brief History and other important facts of medical malpractice insurance in New York.
In recent years, standard medical professional liability insurance companies—better known outside of New York—have founded risk retention groups (RRGs) with the intent of entering the state. An RRG is an alternative risk transfer mechanism permitted under the Federal Risk Retention Act of 1986 that provides insurance coverage for individuals participating in a similar business. Those companies are only subject to the insurance rules and regulations of the state in which they are domiciled, but can register and engage in the business of insurance in all states.
Traditionally, the downside of being covered by an RRG is that its insureds must make a large capital contribution to establish reserves and have no access to a state’s guaranty fund should the RRG be unable to meet its obligations. The new RRG options available in the state have been funded and reinsured by their parent company, eliminating some of the risks associated with RRGs.
While the entrance of RRGs into the market has been New York’s dominant medical liability story during recent years, 2018 saw two significant moves by admitted medical professional liability insurers. Longtime New York insurer of medical liability MLMIC Insurance Co. completed its conversion from a property-and-casualty mutual insurance company to a property-and-casualty stock insurance company, finalizing its $2.5 billion acquisition by National Indemnity Co., a subsidiary of Berkshire Hathaway Inc. As a subsidiary of Berkshire Hathaway, MLMIC will have enhanced capacity and financial strength to continue serving New York State physicians, hospitals and dentists. And after entering the New York admitted market in 2017, medical professional liability insurer The Doctors Company announced an agreement to purchase Hospitals Insurance Co. (HIC) and its third-party administer FOJP Service Corp. from Mount Sinai Health System, Montefiore Health System and Maimonides Medical Center for $650 million, further expanding its footprint in New York.
Another unique facet of the New York market is the prevalence of occurrence policies, which are quite common. Occurrence policies differ from claims-made because they cover a physician for any incident that happens during the policy period, regardless of when the claim is filed. Occurrence policies will continue to provide this coverage even after a policy has been cancelled. Physicians who have an occurrence policy will not need to purchase tail insurance if they leave their carrier. However, occurrence policies are more expensive than the more common claims-made policies. Claims-made policies only cover incidents that occur during the policy period if the claim was also made while the policy is still in force. Otherwise, the physician would need prior acts coverage for protection against such claims.
Tort Reform in New York
Though medical malpractice tort reforms have been attempted in the past, they have met with little success. In addition to costly medical malpractice insurance rates, the state has the most expensive Medicaid program in the country, serving one in four New Yorkers and costing more than twice the national per capita average. In 2011, Gov. Andrew Cuomo commissioned a Medicaid Redesign Task Force with the directive of recommending ideas for decreasing the cost of healthcare in New York.
The Task Force made 79 recommendations, including a $250,000 cap on noneconomic damages and the creation of an indemnity fund for neurologically damaged infants. While the noneconomic damage cap failed to receive approval from the state assembly, the fact that a governor from the Democratic Party endorsed and lobbied for a cap shows that an increasing number of lawmakers understand New York’s need for change in its medical liability climate. According to Gov. Cuomo, the cap would improve predictability for medical malpractice insurance companies, allowing them to reduce rates and offer financial relief to physicians who treat Medicaid patients
New York has also benefited from PPACA grants earmarked for creating medical malpractice pilot programs intended to reduce the number of medical errors as well as test special “health courts” employing specialized judges to mediate medical malpractice settlements before the go to trial. The program is still in its early stages, but early results have been promising.
Medical liability reforms moved in an unfortunate direction in 2018 when New York Gov. Andrew Cuomo signed into law “Lavern’s Law,” which changed the tolling of the state’s two-and-a-half-year statute of limitations for an alleged missed diagnosis of cancer from the date of the alleged missed diagnosis to when the patient discovers the missed diagnosis. Many in the medical liability interest expect this new law to increase the number of claims for missed diagnosis of cancer.