June 16, 2016
Ask any busy professional for their most hated business process, 9 out of 10 will say filling out those darn malpractice insurance applications. I have to agree, they're inconsistent, unclear, repetitive, too long and oh-so-tedious. So much so that unless your current insurer refuses to renew your policy or doubles your premium, you will stay put with your current insurance company . . . and insurance carriers know that. When’s the last time you called your insurance company with a question or problem. Not much in the Customer Service category, you say?
You need to stay with your current insurance company at renewal because they will treat you fairly and not increase your premium because you've never had a claim and loyalty really matters.
This is business. You may not have had a claim but if other policyholders with your particular area of practice have, you will pay more for your insurance. But you don’t have to if you shop your coverage periodically with the help of a broker that specializes in Professional Liability Insurance.
This stuff isn’t rocket science. It doesn’t matter who you buy malpractice insurance from.
No, it’s not rocket science, but it is confusing and not all policies are created equal. Unless you want to spend hours pouring over policy forms and comparing insurance quotes, it’s best to work with an independent insurance broker that specializes and has a track record with professional liability insurance. Quotes between insurance companies are rarely apple-to-apple comparisons and the policy coverage varies…sometimes by a lot!
Professional Liability Insurance all costs about the same, regardless of where you buy it.
Professional Liability insurance rates are impacted by natural disasters, economic conditions, and poor business decisions i.e. where to write policies and who to partner with to distribute the product. It also matters how closely the insurer manages its claims. Don’t overlook smaller regional insurers. They typically have a more disciplined approach to writing business which means more consistent pricing and ability to weather not-so-good economic times.
So, if your malpractice premiums have been creeping (or leaping) up over the last few years, it’s fallout from the last recession and you need to be confident that you have the best insurance available at the best value for your premium dollar. Don't put it off any further, contact a specialized broker with the right relationships to have them shop for you at zero cost.
Cindy Wiedman, founded Wiedman Insurance Services, LLC (LiabilityPro Insurance Advisors*) August 1, 2014. Cindy is a Registered Professional Liability Underwriter (RPLU) and has designed and administered professional liability insurance programs over a 35-year career working for various insurance administrators in the Midwest such as Shand Morahan & Company, Kirke Van Orsdel, Marsh and Lockton Affinity.
*Currently working with investment advisory businesses domiciled in Iowa, Minnesota, Kansas, Illinois and Nebraska.