I recently had a lengthy discussion with a general surgeon from New Jersey, who was offered a medical directorship at a surgical center in Manhattan, N.Y. He explained that the surgical center would not provide his medical malpractice insurance and, therefore, would need to secure his own coverage. When he called his current insurer, they explained that they do not cover medical director exposures. Calling around to other medical malpractice insurance companies in New York, he received the same news. Frustrated, the doctor called me saying he couldn’t even get anyone to steer him in the right direction for acquiring medical director insurance.
This was my jumping off point for explaining the differences between the two predominate types of medical malpractice insurance companies and the value of working with a medical malpractice insurance broker. First, there are the “admitted” companies. These are the companies that focus their attention on traditional doctors and their practices. They do not provide coverage to physicians who have lost big verdicts or large number of malpractice claims, gaps in coverage or licensing issues. They also do not provide coverage to facilities and organizations, like locum’s tenens companies, medi spas, medical directors and other types of medical practices that are outside of a traditional physician practice. These admitted companies are licensed by the states in which they operate and file their rates and guidelines with those states’ Departments of Insurance. As such, these admitted insurance companies must be very strict in what they can and cannot cover because they must abide by their filed guidelines.
Physicians who — for whatever reason — cannot secure medical malpractice insurance on the admitted market, purchase their coverage from “surplus lines” insurance companies. These companies are not licensed by the state, so they are not required to file their rates and guidelines, which affords them more leeway in determining what and who they will and will not insure. These companies must be approved to do business within the state, but are designed with more latitude in order to offer coverage to physicians when the admitted companies cannot.
I explained that we would approach all of the companies who specialize in offering medical director insurance so that we could flush out the most competitive offers as well as the best policy terms.
After completing various, specific medical director insurance applications, we secured five different quotes for him. After another discussion about which company would be the best fit for him, we secured the policy of his choice. He not only continues to work at the surgical center, but has picked up two more medical directorships at separate locations — all covered under the medical director insurance policy we acquired together.
Without the knowledge, experience and access that comes from working with an experienced medical malpractice insurance broker, our general surgeon wouldn’t have been able to navigate the tricky world of medical malpractice insurance companies in New York to find his medical director insurance.
Are you looking for medical malpractice insurance in New Jersey, New York or any other state? Call me at 708-848-2300 to discuss your options.