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Medical Malpractice Insurance Carriers

Medical malpractice insurance carriers are insurance companies that provide malpractice coverage for medical professionals. Some carriers may only offer coverage for doctors, while others offer coverage for nurses, therapists and other medical professionals. The most commonly-found companies offer insurance for physicians.

An insurance carrier, whether in the medical field or not, is a company that sells policies. The policies they sell are underwritten by another company in most cases. However, some insurance providers are also the underwriter of their own policies. The reason insurance companies have varying coverage specifications (and also prices) is because of the underwriter.

Medical Malpractice Insurance Carriers - Price 

Using statistical data gathered within the state, the underwriter determines how to price their policy's specifications. Each state has different statistics, so each state has different rates. By using the underwriter's guidelines and state statistics, an insurance company then decides how much to charge for their policy. This is why policies vary in price from one state to another. For example, two identical $1 million/$3 million policies from the same nationwide company that are held in Florida and Wyoming may cost $10,000 more per year in Florida than in Wyoming. This is because Florida has a higher rate of lawsuits and claims.

Medical malpractice insurance carriers also work as the mediator between the underwriter and the client or policyholder. Dealing directly with an underwriting agency involves knowing the terms they use, the difficult insurance calculation methods and the endless rules and regulations. Insurance carriers take the information, summarize it and translate it into everyday language that consumers can understand.

Medical Malpractice Insurance Carriers - What You Should Know

By being the party that holds the policy a client buys, the insurance carrier is also paid for their services. A small portion of every premium payment goes to the insurance carrier. Their work is a necessary and convenient service, saving consumers from the long and difficult process of learning about the insurance business. In exchange for their work, they expect to be paid.

There is a slight difference between regular carriers and medical malpractice insurance carriers. Those in the medical malpractice business assume a much higher risk. There are far more medical malpractice claims than any other form of professional liability claim. Their task in determining policy prices is a continuous cycle, involving constant analysis of current data and claim award trends. The carrier must also determine how much of a risk each medical professional is, depending on the field they work in, the amount of hours they have, experience years and claims history.

Last modified: May 15, 2011