Vicarious Liability Medical Malpractice, The Challenge with Medical Malpractice Insurance

Today, we worked on three different physician’s policies which required some adjustments.  The challenge with medical malpractice insurance is that physicians’ generally (that is, when they have ‘claims made’ malpractice insurance policies) cannot begin a new policy without incurring two potential problems:

1)      they open an attractive deep pocket with a secondary set of limits (which can be a good thing because it protects the insured and draws a line in the sand between one practice and another), however, there is a belief that where there are limits of insurance there are high demands for settlements.

2)      Each claims made policy carries with it an expensive tail premium.

Because of these two problems, we work hard where possible,  to cover the entire physician practice exposure with just one policy.  There is certainly enough insurance with just One Million dollar  limit per incident ; And, as long as the practice will allow for one policy (i.e. the additional practice is not covered by a  large ‘self-insured’ academic or large group policy), then keeping just one policy keeps it simple and much less expensive.

The underwriting adjustment that must be made to the group policy is called an entity, vicarious liability premium.  Entity premium is 10 % of the underlying physician’s premium so when a doctor is moved off of a policy, the underwriter develops that same 10 % and attaches it to the entity;  increasing the overall entity premium for the group (appropriately to reflect the physician’s affiliation.  And, the physician carries his/her own separate policy with the flexibility of covering them at any and all locations where needed.

 

Comments

Got something to say? Join the discussion »

Leave a Reply

 [Quick Submit with Ctrl+Enter]

Remember my details
Notify me of followup comments via e-mail

  1. Re: Cardiology Malpractice Insurance

    yeezy v 2の販売,환상 판매,La vendita Yeezy V2,Yeezy V2 de vente,En el mercado yeezy V2. http://www.yeezysv2...

    -- Yeeyzs V2

  2. Re: The long life (and low payment) of a Medical Malpractice Lawsuit.

    http://www.vapormax2018.org/ Vapors http://www.vapormax2018.org/ Vapormax Pas Cher http://www.vapormax...

    -- Vapor Max 2018

  3. Re: Medical Malpractice Claims Trends

    http://www.vapor-max.com/ Women'S Nike Air Max http://www.vapor-max.com/ Womens Nike Air Max http://www...

    -- Vapor Max

  4. Re: Cardiology Malpractice Insurance

    yeezy v 2の販売,환상 판매,La vendita Yeezy V2,Yeezy V2 de vente,En el mercado yeezy V2. http://www.yeezysv2...

    -- Yeeyzs V2

  5. Re: Medical Expert Witnesses Can Be Sued for Negligence in the Preparation of Their Testimony

    yeezy v 2の販売,환상 판매,La vendita Yeezy V2,Yeezy V2 de vente,En el mercado yeezy V2. http://www.yeezy500...

    -- Yeezy 500

  6. Re: MediSpa and Wellness Center Professional Liability Policies

    http://www.vapormax2018.org/ Vapors http://www.vapormax2018.org/ Vapormax Pas Cher http://www.vapormax...

    -- Vapor Max 2018

  7. Re: Physician’s Assistant Liability Insurance Shared or Separate Limits?

    http://www.vapor-max.com/ Women'S Nike Air Max http://www.vapor-max.com/ Womens Nike Air Max http://www...

    -- Vapor Max

  8. Re: Sleep Center Growth

    http://www.air-max2018.com/ Women'S Nike Air Max http://www.air-max2018.com/ Womens Nike Air Max http...

    -- Air Max

  9. Re: Hospitalists are coming; how to rate them for malpractice insurance?

    yeezy v 2の販売,환상 판매,La vendita Yeezy V2,Yeezy V2 de vente,En el mercado yeezy V2. http://www.yeezyv2sales...

    -- Yeezy V2 Sales

  10. Re: The Partnership With the Society of Hospital Medicine Gives The Doctors Company Outstanding Understanding and Insight into this Specialty

    yeezy v 2の販売,환상 판매,La vendita Yeezy V2,Yeezy V2 de vente,En el mercado yeezy V2. http://www.yeezysv2...

    -- Yeeyzs V2