How much is Malpractice Insurance for Surgeons?
Malpractice insurance cost for surgeons can vary widely, starting from around $40,000 to well over $100,000 annually. The cost depends on a number of different factors, including:
- Specialty and Procedures Performed: Higher risk specialties, like neurosurgery, will usually have higher premiums.
- Geographical Location: Areas with a higher history of litigation or larger settlements will usually have higher insurance costs.
- Claims History: Surgeons with no history of claims will pay less for insurance than those who have had claims against them.
- Coverage Limits: Higher coverage limits result in higher premiums.
- Type of Policy: Occurrence policies typically cost more than claims-made policies because of the period of coverage.
A Neurosurgeon n Miami, Florida, could pay around $115,000 annually for malpractice insurance with limits of $1,000,000/$3,000,000. A Bariatric Surgeon, meanwhile would pay around $80,000 for the same coverage. A Plastic Surgeon in Florida, would pay around $70,000, the same rate paid by an Orthopedic Surgeon.
Surgeon malpractice insurance cost in Houston or Los Angeles, is around $65,000/year for for a Neurosurgeon with the same coverage. Meanwhile Orthopedic surgeon malpractice insurance cost in those cities would be $30,000 – 40,000.
At the other end of the scale, in Manhattan, NY, A Neurosurgeon pays around $210,000/year. A Manhattan Bariatric Surgeon pays around $130,000, while Orthopedic Surgeons and Plastic Surgeons pay $125,000.
The quickest way to get an accurate quote on your malpractice insurance is to fill out the form at the bottom of this page. We’ll work with a number of different carriers to give you a price for the most suitable insurance at the best price.
What types of Malpractice Insurance are available for Surgeons?
Two different types of coverage are available :
- Claims-Made Coverage: These policies only cover you for when the claim is filed, regardless of when the incident occurred. These policies are usually less expensive, provided you are planning to continue the insurance for some time. If you’re planning to retire, or move to another insurance company, you will have to purchase extended coverage. Otherwise you won’t have insurance protection in the event of a claim.
- Occurrence Coverage: This covers you for any incident occurring during the policy period, regardless of when the claim is filed. Occurrence coverage is more expensive than claims made coverage, but it is worth considering. It is particularly useful for Surgeons who are planning to retire in the foreseeable future, as the coverage continues.
Is there any way for Surgeons to reduce the cost of Insurance?
Yes, there are several steps surgeons can take to help reduce their premiums, such as:
- Risk Management Courses: Many insurers offer discounts for medical professionals who complete these courses. Several risk management strategies are outlined on this page: how doctors can manage malpractice risks
- Choosing a Higher Deductible: Can lower your premiums but you will pay more out of pocket if a claim is made.
- Group Policies: Joining a group policy with other surgeons will give you lower rates than an individual policy. Insurance companies typically offer discounts for group purchases.
- Working with a medical malpractice broker: Is important because Insurance carriers will often change their prices or conditions. Carriers will often decide to limit their exposure in a certain geographical areas or for different specialties. A broker with a good understanding of the market, will be able to source the most suitable policy for you at the best price.
What are your Options if you’ve had Claims filed against you?
Surgeons who have a history of claims will naturally have a more difficult time sourcing malpractice insurance. This is because most carriers will not want to take on what they perceive as a higher risk. If you’re in these circumstances, we would look at alternative insurance for you, including:
- Risk Retention Groups. These are liability insurance companies owned by their members. These groups can sometimes accept hard to place surgeons, where insurance carriers will not.
- Surplus Lines Insurers, who specialize in covering risks that standard insurers refuse.
- State High-Risk Pools. These work as a safety net for medical professionals who are unable to secure insurance through the private market.
- Professional Liability Trusts, which offer an alternative to traditional insurance. Set up by professional associations or similar groups, these trusts provide a collective self-insurance mechanism for members.
- Tailored Solutions. These are typically offered by brokers like Westwood Insurance, who have the expertise and connections to negotiate coverage terms with insurers that are not widely advertised.
If you are experiencing some difficulty obtaining traditional Insurance coverage, check out this page for more details: insurance for hard to place physicians. You can also speak with Westwood today and we’ll find a solution for you.
What should Surgeons look for in a Malpractice Insurance Policy?
These are the main things that you should consider when looking at insurance coverage.
- Coverage Limits: Ensure the coverage is sufficient for potential claims. The most common liability limits are $1,000,000 per incident and $3,000,000 aggregate (total claims over the insurance period.)
- Defense Costs: Check to see if legal defense costs are included in the coverage limits. If it is additional, be aware that defense costs can be quite substantial in a malpractice case.
- Consent to Settle: Some policies require the insurer’s consent to settle a claim, which could be a limitation.
- Reputation and Financial Stability of the Insurer: Ensure the insurer is reputable and financially stable to cover claims.
To get a quote on the most suitable insurance at the best price, contact Westwood Insurance now.
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