Owning a medical practice can be quite lucrative, and also gives a physician the opportunity to provide exceptional medical care for patients. However, there are also some major expenses associated with operating a medical practice. One of the larger expenses is medical malpractice insurance premiums. This type of insurance is a must for physicians. It is an insurance policy that protects the physician and the practice in the event that there is a major problem with a patient due to neglect or substandard care. Luckily, there are ways to help manage the cost of these insurance premiums. Use the following tips to help lower medical malpractice insurance premiums for your practice:
Explore Available Credits and Discounts
Premiums for medical malpractice insurance policies can vary greatly. One way to manage the premium costs for a medical practice is by taking the time to explore available credits and discounts. Most insurance companies that offer medical malpractice insurance policies have credits and discounts, but they are not applied automatically.
Thus, you may need to request information about the credits and discounts and ask if your practice qualifies. For example, you may qualify for discounted premiums if the physician buying the policy does not have any past claims. Likewise, successfully completing a risk management course can result in a credit that lowers insurance premiums.
Work with an Experienced Insurance Broker
Operating a medical practice takes a lot of work. Physicians and nurses see patients all day, and the administrative staff schedules appointments, files insurance claims, and keeps track of billing. This means that usually no one working at a medical practice has the time needed to search for the best medical malpractice insurance rates.
The best way to ensure that the medical practice has the lowest malpractice insurance premiums possible is by working with an experienced insurance broker, preferably one who specializes in malpractice insurance. An insurance broker will review the policies offered by a variety of companies and find a policy that has the lowest rates possible while also having excellent coverage.
Avoid Automatic Renewals
In most cases, a medical malpractice insurance policy is valid for one year and then has to be renewed. Many medical practices make the mistake of signing up for auto-renewal for the sake of convenience. While auto-renewal may be convenient, a medical practice can also end up paying higher premiums over time. Instead of having your insurance policy automatically renew, have an insurance broker review your policy annually to see if better premium rates can be found.