Keys to Saving Money on Physician Malpractice Insurance

In the course of their work, many physicians are faced with huge expenses, which continue to increase. A physician’s business is continuously managing costs related to day-to-day operations such as equipment, office supplies and medical supplies. Most of items are consumable, so when there are many patients the costs rise. These costs can be controlled by some extent by choosing most effective suppliers.

That being said, the greatest expenses for a physician are the main fixed costs, which should be budgeted for every year. These costs change from year to year, but can remain stable quarterly and monthly. One of those major fixed costs is malpractice insurance.

Here are a couple ways that you can save on malpractice insurance:

Look at discounts offered

In circumstances where physician malpractice claims are steady and rates are low, competition among insurance companies can be fierce.  This can be a benefit to physicians. Many malpractice insurance companies usually offer significant discounts in order to separate themselves from the competition.

Physicians and practice managers should always inquire about any discounts offered. Examples of these discounts include large group, being a new physician, individual and groups without a claim or few claims, and so on. Working with brokers who have experience and long term relationships with insurance companies can be a great advantage as they are more knowledgeable about the various discounts available.

Best payment option

Many malpractice insurance companies do allow monthly, quarterly, or annual payments. However, you should find out if there extra charges involved in the monthly or quarterly payments. When spreading the payments out, it can help with cash flow for your practice but, again there may be extra fees or costs. However, depending on the market and, there are some providers that will offer monthly or quarterly installments with no charges.

Many physicians and practice managers choose malpractice payment premiums annually in order to avoid extra charges.  If you are able to, set aside funds throughout the year so that you are prepared to pay a lump sum when it comes time to renew the policy.

In addition to these money saving tips, it’s important to spend some time shopping around for physician malpractice insurance.  Don’t go with the first company or broker you talk with. Make sure you have the right type of coverage for your medical specialty before committing to any policy.