Medical malpractice insurance can be a major expense that frustrates and even frightens physicians. Because you have to have it, the companies that offer malpractice insurance frequently have doctors over a barrel when it comes to costs. But there are some things you can do to keep your rates as low as possible.
The following advice comes in large part from "Malpractice Insurance: How to Lower Your Premiums—Now's the time to get too-high liability costs under control. Here's our guide," posted on Physicians Practice online:
- Take a deductible. You use deductibles to lower your car and home insurance—why not take a deductible on your malpractice insurance, too? Of course, you'll want to make sure your practice can handle the deductible if you have to pay it, but in the meantime you can earn interest on that money as well as the malpractice insurance fees you'll save.
- Start shopping earlier. Don't rely on your malpractice company to let you know when it's time to renew; it's not in their best interests to give you time to shop around. Getting started a month or so in advance gives you plenty of time to compare malpractice rates so you're ready to drive a bargain with your company.
- Some malpractice insurance companies will give you a discount for paying early, for example, a lump sum in every quarter as opposed to monthly payments.
- Make sure your malpractice insurance company is giving you credit for any changes in your status, for example, dropping minor surgeries or going part time.
- Use a malpractice insurance broker who deals with several companies, and let that person do at least part of the research involved in finding a good deal for your practice.
- Research the insurance company's financial ratings. Malpractice insurance companies are required by law to have substantial investments. When those investments lose value, the companies make up for the loses with higher rates.
In addition to this advice, you can also save money on malpractice insurance by doing everything you can to eliminate claims. Sign yourself and your staff up for risk management courses, and document that you've done so. Document the steps you've taken to address any claims that you have had and the results of those efforts. If you show that you're taking solid steps to save your practice from claims, the insurance company is going to notice that effort.
While medical malpractice insurance is a necessary evil, it doesn't always have to be an overly-expensive one. If you are proactive, you stand a good chance of saving your practice some serious money. In the meantime, many of the steps you'll be taking to keep claims down will mean that you're practicing better medicine.
