When purchasing liability insurance to protect your reputation and your medical practice, there are many variables to consider.
Not only must you understand the coverage that is best for you and your practice, you must also be able
to evaluate the insurance carrier who will be providing your protection.
Whether you are purchasing your first medical liability policy or considering changing carriers, it is essential that you explore
the options and make an informed choice about the company who will be at your side if a claim occurs.
Financial stability
When shopping for a medical liability insurance policy, it is a good idea to take a look at the company you will be buying from.
It is crucial that an insurance carrier have sufficient financial resources to meet all current and future claims against policyholders.
A company without adequate financial reserves may be one excess jury verdict away from bankruptcy. Review the company's annual report
and other financial statements to evaluate their financial stability. If you are unsure how to evaluate the financial data,
ask your accountant, financial advisor, or attorney to review it with you.
Defense philosophy
What is the company's defense philosophy? Do they vigorously defend their policyholders or simply settle cases? To determine this, ask how many claims they close with no indemnity payment. (A company that believes in defending non-meritorious claims rather than paying them will close the majority of their claims with no indemnity payment.) Does the carrier have a designated claim department to handle claims internally? Some carriers employ outside claim managers that may or may not be located in your state. Their knowledge of the claim environment in your state may be limited. What is the carrier's record in the courtroom? This is an indication of the strength of the company's claim management and defense attorneys.
Experience in Texas
Malpractice laws differ from state to state, so make sure your chosen carrier has experience with Texas claims. How many Texas policyholders does the company currently insure? This is an indication of their experience in Texas and their commitment to the state. Remember, in the early 2000s, many malpractice carriers left Texas because of unfavorable market conditions, leaving their policyholders to locate other coverage in a limited market.
TMLT has been defending Texas physicians for more than 30 years, resolving more than 40,000 claims. Our claim supervisors average 12 years of medical malpractice claim experience; claim executive staff averages 18 years of experience.
Risk management services
Claim prevention and risk management programs should be an integral part of the service you receive from a medical liability insurer. The carrier should provide you with ongoing information on how to prevent lawsuits, including publications and educational programs. Check to see if you get a premium discount by participating in these programs.
Making your choice
Purchasing medical liability insurance is an intensive, time consuming process, but remember, the carrier you choose will protect one of your greatest investments — your career in medicine. Take the time to learn about the insurance product you are buying and the quality of the provider. Ask your colleagues — what kind of reputation does the carrier have? Are policyholders treated fairly? If they have had a claim, what was their experience like?
By thoroughly evaluating all your options, you can make the right choice and get the best value from the field of available medical liability providers.
