Medical Malpractice Insurance: Selection of Companies and Policies

One of the most important decisions a physician needs to make each year is which medical malpractice insurance policy to buy. The three fundamental areas that should influence the physician’s decision are: (1) the cost of the insurance, (2) the policy form, and (3) the financial condition of the insurance carrier. Generally, most physicians focus on only the cost of a policy, when all three topics should be given equal weight. Not being fully cognizant of the other two components would be similar to negotiating and purchasing a car without asking or determining whether the car even runs. How would you feel after negotiating a very low price for a car but later found out that it did not start? When considering that medical malpractice insurance protects a doctor’s personal assets, one would assume that physicians would pay attention to the other factors, but sadly it is often not until the insurance carrier either goes out of business or the physicians face additional unexpected burdening costs that they realize their mistakes.