How a Physician’s Loss History Can Affect Malpractice Insurance Rates

A physician’s loss history plays a significant role in determining malpractice insurance rates. This history includes past claims or incidents, whether they resulted in settlements, judgments, or were dismissed. Loss history affects how insurers assess a physician’s risk level and can either increase or decrease premiums based on the frequency and severity of past claims. Physicians with a clean loss history are often eligible for premium discounts, which can lead to substantial savings over time.

Key Takeaways:

• Loss History Impacts Rates: Insurers use a physician’s loss history to evaluate risk and set malpractice insurance premiums.
• Clean History Benefits: Physicians with a claim-free record are often eligible for credits and discounts, reducing their overall insurance costs.
• Specialty Matters: Physicians in higher-risk specialties may see a greater impact on premiums based on their loss history.
• Improving Premiums: Proactive risk management and claim-free years can help mitigate the impact of past claims on premiums.
• Shopping Options: Not all insurers weigh loss history the same way, so it’s worth exploring different options if your premiums are high.

Our medical malpractice insurance brokers are here to help explain what a physician’s loss history is and how it could affect the cost of their medical malpractice insurance.

Transcript

“This goes back to some of the discounts that a physician can earn for being

claim free. 

If they have had no losses in their career obviously they’re going to have at least the ability to try and secure

additional credits.

So the more years that they’ve been loss free, the more the more discounts they could be eligible for.”

Common Questions About Loss History

• What is considered part of my loss history?
  A physician’s loss history includes all claims filed against them, regardless of outcome. This typically covers paid settlements, judgments, dismissed claims, and open cases. Insurers review these details to assess overall risk.
• How do past claims affect my current premiums?
  Insurers view past claims as indicators of potential future risk, especially if claims were severe or frequent. A history with multiple or high-severity claims may lead to higher premiums, while a clean history could qualify for discounts.
• If I have a few claims, will my premiums still be affected?
  Yes, even a small number of claims can impact premiums, depending on the nature and outcome of each claim. Insurers consider the specifics, such as the claim’s severity and resolution, but generally, fewer claims mean less impact.
• Are some specialties more impacted by loss history than others?
  Absolutely. High-risk specialties like obstetrics, surgery, and emergency medicine tend to face greater premium increases from claims. This is due to the higher potential severity and frequency of claims in these fields.

The Team at Cunningham Group is Here to Help

Understanding your loss history and how it impacts your malpractice insurance can be complex. At Cunningham Group, we’re dedicated to helping physicians find the best coverage for their unique situations. We’ve put together an in-depth Medical Malpractice Insurance Ultimate Guide to answer many of your other malpractice insurance questions. Or, contact us today to discuss your options and learn how to secure the most favorable rates for your practice.

*This article has been updated with new information