When searching the market for medical malpractice insurance, it is incredibly important to make sure you are receiving all of the discounts you deserve. There are multiple ways in which you can save, and without a broker, you will likely overlook these opportunities. There are many different discount opportunities that can vary from carrier to carrier. Some of the most common opportunities for savings include board certification, new doctor discounts, risk management credits, claims free history, part time, group discounts, and JCAHO.
Board Certification - This discount is available to licensed medical professionals who complete their board certification. A 5 percent annual discount is typical in this instance, but this number varies from carrier to carrier.
New Doctor Discounts - This discount applies to practicing physicians who are just starting out. This is because they have little to no liability from previous patients. A common discount would be:
- Year 1- 50% Discount
- Year 2- 25% Discount
After the first few years of practice, these discounts will no longer be available; therefore it is critical to take advantage of these when possible.
Risk Management Credits - If a medical professional is willing to participate in various risk management courses, premium discounts may be available. Carriers are willing to give these discounts due to a better understanding of precautionary measures, which may prevent claims in the future. Generally, carriers will give approximately a 5% discount if courses are completed, but typically, the insured’s carrier must provide the course.
Claims Free History - If a medical professional has a claims free history, or has not had a claim in 3, 5 or 10 years depending on the carrier, discounts of as much as 25% annually could be provided.
Part Time Discounts - If a physician or surgeon only practices part-time, it is common for large discounts to be available due to the reduced number of patients being seen. Discounts vary by carrier, with some starting at 30 hours per week or less. However, the majority of markets offer discounts that range from 25%-50% for physicians working 20 hours or less per week. Some carriers offer additional discounts to those working 10 hours or less per week, and the discount may vary based on your specialty.
Group Discounts - Physicians and surgeons who carry group policies will generally pay a lower premium than do those with solo plans. Because the risk is spread among multiple doctors, the premium goes down per doctor.
JCAHO Discounts - When a health-care organization is certified by the Joint Commission on Accreditation of Healthcare Organizations (JCAHO), the organization is most likely eligible for discounts from 5 percent to 10 percent annually.
Deductible - It might be possible to decrease your premium in exchange for retaining a portion of the risk on your policy. While this is not as common with malpractice polices as it is with other lines of insurance (auto, health, business owner, homeowner, etc.), many carriers can offer discounts in exchange for a deductible.
Professional Organization/Society - There might be a discount associated with membership within your state, county, specialty, or other medical society or association.
Additional Discounts - Most carriers have additional discounts available that may be specific to their underwriting guidelines. These discounts might specialty specific, state specific, or associated with a number of other factors that can reduce your premium.
As a medical professional, you must make sure you are receiving all the discounts for which you are eligible. At Gallagher Healthcare, we strive to find every discount possible to save you money so that you can focus on what matters most, your patients. Our team specializes in professional liability for physicians and physician groups. We are the largest broker for physician malpractice insurance in the United States and ensure that our clients receive the best terms possible.