Types of Medical Malpractice Insurance Companies

Medical malpractice insurance protects physicians and other healthcare providers against the costs associated with defending a claim of medical negligence that led to injury or death. It typically covers all the costs within the monetary limits of the insurance policy.

To ensure you receive the best coverage, it’s essential to pick the right medical malpractice insurance company. Some of the more reputable companies will offer tailor-made policies that match your needs and requirements. They will also offer competitive rates and multiple coverage options, and have high financial-strength ratings.

Exploring Different Types of Medical Malpractice Insurance Companies

A. Physician-owned insurers

Physician-owned insurance, which can also be known as Professional Liability Insurance Company (POMPL), is owned and operated by healthcare professionals, typically physicians. This is an alternative to traditional insurance carriers meant to give physicians more control over their malpractice insurance coverage. 

  • Mutual insurance company
    • A Mutual Insurance Company is owned by its policyholders. These types of insurance companies provide insurance at — or very close to — the actual cost of the coverage. 
  • Reciprocal insurance company
    • A Reciprocal Insurance Companies is an organization of insurance companies that exchange insurance contracts and spread the risks associated with those contracts. 

B. Commercial carriers

Commercial Carriers are traditional, standard insurance companies that offer malpractice insurance coverage to various professions, including physicians, surgeons and other healthcare professionals. These companies are typically more common and widely known insurance providers in the marketplace.

C. Risk-retention groups

A Risk-Retention Groups, also known as an RRG, is a liability insurance company owned by its members. One of the main characteristics of an RRG is that as an insurance company they retain any risk of a lawsuit. 

D. Risk purchasing groups

A Risk Purchasing Group, also known as an RPG, are insurance customers who group together to purchase their liability insurance coverage from an insurance company. This type of group/company allows for multiple healthcare providers or physicians to purchase liability insurance coverage together. Not all states permit the formation of a risk purchasing group. 

E. Joint Underwriting Association (JUA)

A Joint Underwriting Association, also known as a JUA, is a non-profit risk-pooling association established by a state legislature in response to availability crises with respect to certain kinds of insurance coverage. Many states have established JUA’s in response to a lack of affordably priced malpractice insurance coverage for physicians. 

F. Trusts

A Trust for Medical Malpractice Insurance is an insurance arrangement where participating healthcare providers join together to collectively manage their liability risks. Typically a group of healthcare providers will come together to create a trust, which they establish as a separate legal entity.  

Medical Malpractice Insurance Considerations by State

When evaluating medical malpractice insurance companies by state, physicians should take into account several important factors to make certain they get the right coverage for their needs. 

  1. State-Specific Regulations: Each state has its own unique laws and regulations regarding medical malpractice insurance. It’s crucial for doctors to be aware of the specific requirements and minimum coverage limits mandated by their state. Understanding state regulations ensures compliance and provides clarity on coverage needs.
  2. Current Tort Reform Laws: Some states have enacted tort reform laws that can significantly impact medical malpractice claims and damages. Physicians should consider how these laws may affect the insurance landscape in their state and influence their coverage choices.
  3. Market Availability: The availability of medical malpractice insurance carriers and the range of coverage options they offer can vary from state to state. Doctors should evaluate the insurance market in their state to ensure access to insurers that specialize in their area of practice.
  4. Premium Rates: Premium rates for medical malpractice insurance can vary widely from state to state. Factors such as the state’s medical liability environment, frequency of malpractice claims and insurer competition can influence premium costs.
  5. Medical Liability Environment: Doctors should be mindful of the overall medical liability climate in their state. Some states may experience a higher frequency of malpractice claims and larger verdicts, leading to increased insurance premiums.
  6. Insurance Provider Networks: Considering the insurance provider networks available in their state is vital. Working with an insurer that has established relationships with healthcare facilities and hospitals can be advantageous for doctors.
  7. Local Insurance Expertise: Opting for an insurance provider with experience in the state’s unique medical malpractice insurance landscape is beneficial. Local expertise allows for better understanding of doctors’ specific challenges and needs.

At Cunningham Group, we understand the significance of these state-specific considerations. Our extensive experience ensures we can find the best coverage for the unique requirements of physicians across the nation.

The Cunningham Group Difference

Cunningham Group helps you get the best coverage at the best price. Our team of veteran malpractice insurance agents have spent their careers helping doctors navigate the medical liability market. With access to every major medical malpractice insurance company in every state, our team is uniquely qualified to make certain you are getting the best coverage at the most affordable premium, tailored to your individual needs. Our almost-universal access lets us shop your coverage among every available company.  

Why Choose Cunningham Group?

Cunningham Group has been helping doctors secure their malpractice insurance coverage since 1947. The type of insurance you may need can depend on state regulations, physician specialty, type of practice and more. We can help find the best malpractice insurance tailored to fit your needs. As a physician-focused agency, Cunningham Group’s strength is in-depth knowledge of the needs of medical practices. We continually monitor trends and emerging technologies in health care delivery, medical practice productivity, public and private reimbursement, clinical risk management, insurance markets and insurance underwriting. As a result of this dedication, Cunningham Group has a 97% client retention rate amid a challenging marketplace. With our expertise, doctors can make informed decisions and secure the best protection for their practice.

Find The Right Malpractice Insurance Company For Your Needs

Your needs are unique and can depend on a variety of factors from where you live to what specialty you practice. The legal landscape surrounding medical malpractice is ever evolving, making finding the right medical malpractice insurance complex. Allow Cunningham Group to help you find the best medical malpractice insurance company at the most affordable rate. Find the best available malpractice insurance quotes for you today and see how Cunningham Group can work with you.

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