Why do malpractice insurance costs differ between insurance companies?

Posted by | February 18, 2016 | No Comments

On a daily basis, I receive inquires from physicians requesting quotes for their Professional Liability Insurance (malpractice).  I am often asked, “Why is it that some malpractice insurance companies charge a premium that can be 25%-30% lower than my current policy?”.  The assumption is that because some companies offer a more attractive premium, that the coverage is not as adequate or doesn’t provide the same benefits.  However, this is usually not the case.

In a nutshell, different insurance companies have different experience models and appetites for particular risks.  It could be that some insurance companies prefer to insure surgical classes or higher risk specialties.  Some companies prefer to offer coverage to primary care specialties such as Family Practice or Internal Medicine.

Additionally, some malpractice insurance companies offer preferred premiums in particular states or counties where they feel they are better posed to defend their insured’s with a strong defense network.

Professional Liability Insurance can be one of the highest expenses for a medical practice.  Do you know if you have the best coverage at the best price?  If you would like to find out, contact us.

To contact the author, call 800-457-7790 and ask for John Plant.

About John Plant (view full bio page)

John Plant is the Executive Vice President - Eastern Region of Diederich Healthcare. He is a native of the Chicago area and has lived and worked throughout the Midwest. In 1995, he earned his Bachelor of Science degree Southern Illinois University at Carbondale. Having been associated with the Diederich Group since 1998, John Plant formally began his career with Diederich Healthcare, a subsidiary of Diederich Group in 2001. With over 10 years experience in Insurance and Sales, he has been a driving force in the expansion and quality of service for the Diederich Healthcare unit and has been instrumental in the development of specialty specific programs for the Physicians Healthcare department.

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