What challenges do agents face when working alone?
A big challenge agents face when working alone is ensuring correct and accurate information is passed on to the insurer, allowing them to make an informed decision on the risk they are taking with that client.
One of the challenges agents face when working alone is ensuring correct and accurate information is passed on to the insurer, allowing them to make an informed decision on the risk they are taking with that client.
The implications of incorrect or incomplete information
If an insurer goes ahead with a policy based on incorrect or incomplete information, it can have several implications for the healthcare provider:
- Policy cancellation: The insurer may have the right to cancel the policy if they later discover that the information provided was incorrect or incomplete. This could leave the healthcare provider without coverage when they need it most.
- Reduced coverage: The insurer may also have the right to reduce the coverage provided under the policy if they later discover that the information provided was incorrect or incomplete. This could leave the healthcare provider with insufficient coverage to protect them in the event of a malpractice claim.
- Denied claims: The healthcare provider’s claims may be denied if they are based on incorrect or incomplete information. This could leave the healthcare provider responsible for paying for the costs of defending and settling a malpractice claim on their own.
- Financial loss: The healthcare provider could also face significant financial losses if they are found liable for malpractice and their insurance coverage is denied or reduced due to incorrect or incomplete information.
- Legal action: The healthcare provider may also be held liable for any damages caused by the incorrect or incomplete information, and could face legal action from the insurer.
How do brokers help?
Due to the sheer volumen of applications they are managing, brokers generally have a good idea of the particular requirements of each insurer. They are also much better able to pick inconsistencies in the information provided.
Medical malpractice brokers save time by ensuring that the correct information is supplied to support the application so it is not returned. They review the application and any supporting documentation before it is submitted to the insurance company, to ensure that all necessary information is included and that the application is complete. This can help to reduce the risk of delays or denials due to missing or incorrect information.
Additionally, brokers act as a liaison between the healthcare provider and the insurance company, helping to ensure that all questions or concerns from the insurance company are addressed in a timely manner, and that any additional information or documentation required is provided promptly.
The broker can also often assist the healthcare provider in identifying any potential issues or challenges that may arise in the underwriting process, and provide guidance on how to address them. This can help to ensure that the application is approved as quickly as possible, there is no fraudulent or incorrect information included, allowing the healthcare provider to obtain the coverage they need and be secure in the knowledge that they will be properly covered when they need it.
Summary
It is important for agents to ensure that all information provided to the insurer is accurate and complete, to avoid any potential issues with their client’s policy and to protect themselves from financial loss in case of a malpractice claim.
This can be unintentional, as an agent may be unaware of a particular insurer’s requirements as far as supporting doccumentation is concerned. Brokers on the other hand will have a much better idea of the requirements of each insurer as they are working with them all the time. They will also more easily pick any inconsistencies in the information provided and request more detailed information before it is passed to the insurer.
Although it is the client who is at risk of financial losses through inaccurate information, the agent will lose a client every time insurance is denied.
This is one of the benefits of working with a good malpractice insurance broker.