Malpractice insurance is necessary for a medical professional, and it is expensive. There are, however, a few things that you can do to reduce the cost of a policy for your medical practice. The following are just a few helpful ideas.
1. You should work to reduce the chance of a claim
Like any form of liability insurance, a claim against your medical malpractice insurance will drive up your premiums. However, by being proactive, you can reduce the chances of this happening. This begins with an analysis of your patient documentation. Make sure you have an airtight system in place for all applicable consent forms being signed before any procedure is done. You should also make sure your staff is explaining these forms as well as the procedures in plain language to your patients. You should also make sure that your patients have surveys that can be filled out. The purpose of this is not for high ratings of customer satisfaction. You want to identify issues that you may not be aware of, so you can correct them before they develop into a claim of malpractice.
2. You should participate in a risk-reduction program
An insurance company is aware of the areas that produce the highest risk for claims with all types of medical practices. Starting your own clinic or office has many challenges, but you don't want to learn lessons of malpractice the hard way. Insurance companies have a vast amount of data, and they can help you reduce your risk. Of course, it will begin with the type of practice you will engage in. Outpatient surgeries, for example, can create liabilities that can be reduced with the proper preparation and procedures. You should ask about risk-reduction strategies for your particular practice, and what you can do to reduce your premiums at the time you request a quote.
3. Pay attention to the claim management decision process
How an insurance company manages various claims for your malpractice insurance coverage can affect the cost of insurance over time. You need to understand how a particular company evaluates a claim and the process of paying out a claim. Do they have lawyers who will fight for your position? What is the process for a settlement? These are important questions to ask because it is possible that a low limit for liability could be paid out quickly and without a fight. At that point, an attorney could sue for your personal assets. Make sure you understand how much protection you have at various levels of liability.
The cost associated with malpractice insurance can be an important factor in the success or failure of your new medical practice. Take your time to speak with more than one insurance agent to understand what they will do to keep costs down and how you can participate in this effort as well.
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