Most FAQs Regarding Doctor Liability Coverage, Part 3
This is the third installment in our series answering the most frequently asked questions regarding doctor liability coverage. In this post we will answer the following questions:
1. How do I pay for my doctor liability coverage? Is it in a lump sum? Can I make installments? Are there third-party finance options?
It depends. All companies have different options and different payment plans. It is best to approach your doctor liability agent upfront if you need or want a specific way to pay for your insurance. As a general rule, most mid- to large-size admitted insurance companies and all of the major national carriers offer a lump sum and quarterly payment options. And, it has been our experience that the large insurance companies will try to work with the physician to arrange for a comfortable premium payment plan, if their traditional payment options don’t work for the physician.
As for non-admitted carriers (surplus lines companies), they typically require their payments up front. But, if you need the payment broken up, it is best to find a third-party finance company with a low finance rate. You should know that third-party finance companies vary. The finance charge should be low –below 10 percent. And, if it’s above that, you should beware of hidden fees and nefarious charges and continue to shop around.
Depending on the situation, payment for your doctor liability coverage is as easy as mailing a check, setting up an automatic debit plan, wiring the funds or paying by credit card. Most insurance companies do charge a fee for late payments, so be warned.
2. How do you (the agent) get paid? Agents are paid commission by the insurance companies. All insurance companies pay roughly the same commission rate. Because of this, it assures the physician that the agent is working as an advocate for him or her. The best agencies tend to be appointed by the most major carriers and specialize in doctor liability coverage. There is only a handful of med mal insurance companies that operate on a national level. And, getting appointed by the major national insurance companies is no small feat. And, there’s an even smaller percentage of agencies that are appointed with all of the major national carriers.
Continue to follow our series on most frequently asked questions regarding doctor liability coverage.