Picking a Liability Ins Company: What Should I Look For?

Smiling Male Physician Holding Chart Because of the expense of liability ins, and the crucial role it plays in case you are ever to have a claim, it is important to know about your liability ins company before you select your policy.

A.M. Best. When choosing a liability ins company, most experts and physicians will refer to A.M. Best, the independent rating agency. A.M. Best ranks the ins companies based on their financial stability, their claims process, and their longevity. In fact, a liability ins company has not made it to the “big time” until they are being followed by A.M. Best. It should be noted that A.M. Best does not follow every company and they are very selective. A.M. Best rates companies from “A+” to “C+” and the agents at MyMedicalMalpracticeInsurance.com recommend that you place your business with a company that is at the very least A-rated. Having an “A” rating or better, means that the liability ins company has ample ability to defend and pay their doctors’ claims. And, here at MyMedicalMalpracticeInsurance.com, Whenever we send out the rates for our clients to review, we also include the A.M. Best ratings for our clients to review, as well.

While A.M. Best is considered the standard bearer of liability ins, it should be noted that there are smaller ratings companies that follow the smaller, newer insurance companies. The agents at MyMedicalMalpracticeInsurance.com are always cautious when dealing with a liability ins company that is not rated by A.M. Best and we always let our clients know the positives and negatives associated with these companies.

Admitted Malpractice Ins Carriers. In earlier posts, we have explained the difference between admitted and non-admitted carriers. In short, it is always preferable to go with an admitted carrier whenever possible. Being insured by an admitted insurance company is a great way to make sure that the company is being followed closely and has significant checks and balances. That’s not to say that admitted insurance companies don’t occasionally go bankrupt or go through financial hardship. But, having the state reviewing the books annually and pledging to step in, in case of a financial emergency, is an added layer of protection.

Regional vs. National Carriers. Most of the large national carriers, such as Medical Protective, The Doctors Company and Medicus, carry “A” or better ratings and will always be an excellent option for our physicians. Some doctors, however, prefer that their companies operate only locally, because they perceive those companies to have a better handle on the state of their local insurance market. While we always like to provide all of the options available to our clients, we do think that having a large, national presence has an advantage, because problems arising in one state may spread to others, and only the national carriers will have the ability to see them early, address them and respond quickly.

Our Personal Experience. Finally, whenever we speak with a new, potential client, the agents at MyMedicalMalpracticeInsurance.com will provide all of the details regarding the strength and longevity of a company to review, including our personal experience and perspective as professionals in the field. Because of our unique position as a leader in the liability ins community, we have personally worked extensively with all of these companies, and many times, know the underwriters on a first-name basis. We work with these companies daily, know how they operate, and have seen how they treat their clients. We can offer a unique perspective that many of our competitors cannot.

If you would like a detailed analysis of any of the liability ins companies, or you would like to discuss your options further, contact us today and we’d be happy to discuss them.