New York Requirements for Medical Malpractice Insurance

Like most states, doctors are not required by law to carry medical malpractice insurance. However, most hospitals require a physician to carry malpractice insurance before 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
• Upstate University Hospital in Syracuse

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.

Occurrence of Malpractice Policies 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 canceled. 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 of coverage for protection against such claims.

New York Medical Malpractice Insurance Costs

Rates in New York vary greatly depending 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.

Cunningham Group typically gets our New York clients a 30-50% reduction from these base rates.

Factors that Affect New York Malpractice Insurance Premiums:

Practice Location

Amount of coverage needed

• More coverage means a higher premium 

Type of policy preferred

• Every policy is different, every medical practitioner has different needs 

Medical specialty

• Higher-risk specialties that require unique expertise will naturally have higher premiums

Working hours

• Longer working hours ( more strained individuals) will have higher premiums

Previous malpractice claims history

• If you have a history of claims, insurance companies will see you as a higher risk and require a higher premium to cover you

Federal Risk Retention Act of 1986 & RRGs

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

New York Medical Insurer Acquisitions

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 it’s 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.

PPACA Grants

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 they go to trial. The program is still in its early stages, but early results have been promising.

Buying New York Medical Malpractice Insurance

The best way to buy medical malpractice coverage in New York is to work with a reputable licensed malpractice insurance broker who can generate multiple quotes for your unique needs. Your New York broker will also walk you through the lengthy insurance application and underwriting process. This allows you to pick the best coverage at the best price. View medical malpractice insurance quotes from every major New York malpractice insurance company.

How Do Malpractice Insurance Agents Save You Money? 

New York medical malpractice insurance brokers shop for the best available policies to determine which ones are best suited for your unique needs at the lowest cost. In the medical malpractice insurance industry, agent commissions are already built into your premium. You pay the same amount for coverage whether you use an agent or purchase directly from the insurance company. Let us be your advocate. Request your free New York medical malpractice insurance quote now.

See Why New York Doctors Choose To Work With Cunningham Group

New York physicians choose Cunningham Group because we are one of the few medical malpractice insurance agencies that take the time to understand your specific employment situation and your approach to patient care. With access to every major medical malpractice insurance company in New York, our team is uniquely qualified to get you the best coverage at the most affordable price. Most New York agents only have access to one or two medical malpractice insurance companies. Our almost-universal access lets us shop your coverage among nearly every available company, which means  New York malpractice insurers compete for your business.

Resources for New York Physicians

Medical Society of the State of New York
Medical Malpractice Insurance Guide
New York State Department of Financial Services
Office of the Professions – New York State Education
New York State Osteopathic Medical Society
All MD New York Healthcare Defense Attorney Listing