One of the highest costs associated with a medical practice is the cost of malpractice insurance. Of course, this isn't news to a doctor. The question is, what can be done to reduce this cost? The following are a few ideas you might consider pursuing.
Make sure you are getting all available discounts
You may not be interested in every discount an insurance company has available. Not every discount may be applicable to your specific practice. However, there are new discounts that insurance companies will offer that you may not be aware of. Insurance companies are always gathering new data, and it can become clear that there are measures that a medical practice can take that will either reduce the number of malpractice claims or reduce the chance of success if a doctor is taken to court. The best way to determine if you are getting all of these discounts is to have an insurance agent review your policy and determine what discounts are absent. The agent can then talk to you about your specific medical practice.
Get several quotes before renewing
It almost becomes a habit to renew your insurance with the same company that you have been buying policies from in the past. Insurance companies won't automatically give you all of the savings you may be entitled to, given the current market and the specifics of your medical practice. It doesn't cost anything to get several quotes, and you may be surprised. You might want to go through an agent that works with several insurance companies. Another thing to keep in mind is the need for tail coverage. If you decide to change carriers and you need this coverage, you don't need to buy it from your current carrier—you can purchase it from another insurance company. This can save you money.
Consider moving to another state
This may seem drastic, but if you are currently practicing in a state that has rising malpractice insurance rates and these rates are hurting your ability to make the money you think you should be making, a move to another state may be the answer to your problems. Premiums vary greatly from one state to another, and you may find that you are currently practicing in a state that is among the highest in the nation for insurance. You may not have to move far. A neighboring state may have more attractive rates. You should consider other factors as well. The most important is taxes. But if another state combines a low or nonexistent state income tax with lower insurance premiums, it is something to consider.
These are a few of the main things to consider regarding reducing your malpractice insurance. But you need to be proactive. Your insurance is not going to get any cheaper if you do nothing.
For more information, reach out to a medical malpractice insurance agency.Share