Understanding Medical Malpractice Insurance in New York

Medical malpractice insurance in New York is a crucial aspect of medical practice, protecting healthcare providers from costly lawsuits.

New York requires all healthcare providers to have medical malpractice insurance to maintain their licenses.

The state's medical malpractice insurance law sets a minimum coverage limit of $1 million per claim, with an aggregate limit of $3 million.

In New York, medical malpractice insurance premiums are determined by the provider's specialty, years of experience, and location.

The New York State Department of Financial Services regulates medical malpractice insurance policies sold in the state.

Healthcare providers can purchase medical malpractice insurance from private carriers or through the New York Medical Malpractice Insurance Association (NYMIMA).

In New York, you're not required to purchase medical malpractice insurance, but many professionals recommend carrying it to avoid personal financial ruin in case of a lawsuit.

The minimum liability limit for medical malpractice insurance in New York is $1,000,000 per occurrence and $3,000,000 aggregate per policy period. This is a fairly standard limit across the U.S.

Some hospitals in New York require physicians to purchase a higher limit of $1.3M/$3.9M to obtain admitting privileges or work in the hospital. This is to ensure that physicians have adequate coverage in case of a lawsuit.

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New York state does not require doctors to carry medical malpractice insurance. But practicing medicine in New York without coverage is like walking the high wire without a safety net.

New York does not cap damages in medical malpractice lawsuits. This means that doctors who are found liable can face extremely high payouts.

In the first three months of 2024 alone, medical malpractice claims totaling $110.78 million in payouts have been reported by the National Practitioner Data Bank. The year-end total in 2023 topped out at $610.58 million.

There are only three insurance carriers admitted in New York: Medical Liability Mutual Insurance Company (MLMIC), Physicians Reciprocal Insurance (PRI), and Medical Malpractice Insurance Pool (The Pool).

For more insights, see: The Doctors Company

In New York, you are not required to purchase medical malpractice insurance. However, it's highly recommended that you consider carrying it to protect your personal assets and finances.

Medical malpractice insurance can help you avoid personal financial ruin in case of a lawsuit. This is especially important for medical professionals who can face significant financial losses due to a lawsuit.

Check this out: New York State Department of Financial Services

If you work at a hospital, you may be covered by their medical malpractice insurance. However, this coverage can be limited or non-existent if you leave the hospital or are sued for something you did at a previous job.

You can stay covered regardless of when the claims are made if you have your own medical malpractice insurance. This provides peace of mind and protection for your personal assets.

Here are some benefits of carrying medical malpractice insurance:

Liability limits in New York are set at $1,000,000 per occurrence and $3,000,000 aggregate per policy period.

These limits are standard across the U.S. and are often recommended for physicians due to the state's litigious environment.

In some areas, physicians may be allowed to carry lower limits, but most are not comfortable with this option.

The $1M/$3M limit is considered a minimum, and many hospitals in New York require physicians to purchase higher limits to work there.

Physicians may need to carry limits of $1.3M/$3.9M or even $2.3M/$6.9M to meet hospital requirements.

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If you're a medical professional in New York, you're likely aware of the importance of having adequate malpractice insurance coverage.

The largest insurance companies in New York that cover medical malpractice include The Doctors Company, Physicians Reciprocal Insurers, Medical Liability Mutual Insurance Company, and several others, as listed below.

As for the rates, medical malpractice insurance in New York can be quite pricey, with rates 20-50% higher than the national average.

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In New York, there are several insurance companies that cover medical malpractice. The Doctors Company (TDC) is one of the largest, offering coverage to healthcare professionals.

Some of the other notable companies include Physicians Reciprocal Insurers (PRI) and Medical Liability Mutual Insurance Company (MLMIC). These companies provide essential protection to their policyholders.

If you're looking for options, here are some of the largest insurance companies in New York that cover medical malpractice:

Medical malpractice insurance rates in New York are significantly higher than the average rates in the U.S., with rates ranging from 20-50% higher. This is due to the high number of malpractice claims and severity of payouts.

Physicians in New York pay anywhere from $17,000 to $40,000 per year for malpractice insurance with an admitted carrier. Primary Care physicians, including Internal Medicine, Family Practice, and Pediatrics, make up about 40% of the total medical malpractice insurance market in New York.

The average rate for an Anesthesiologist in New York is approximately $40,000 per year, and the average rate for an OB/GYN is about $150,000 per year. These rates are influenced by the high level of risk associated with these specialties.

Some specialties are more likely to face medical malpractice lawsuits and therefore have higher rates and premiums. These specialties include:

It's worth noting that physicians can choose to purchase insurance coverage with a non-admitted insurance carrier in New York, which can offer significantly lower rates. However, these alternative coverage options are not as widely accepted by physicians and hospitals in the state.

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Some specialties are more likely to face medical malpractice lawsuits and therefore have higher rates and premiums. Obstetrics and gynecology, for example, is one of the specialties with the highest rates due to the high likelihood of lawsuits and resulting payouts.

Neurosurgery is another specialty with extremely high premiums, with approximately 19.1% of neurosurgeons facing malpractice lawsuits each year. This is likely due to the high stakes involved in neurosurgery, where mistakes can have serious consequences.

Plastic surgery, orthopedic surgery, and thoracic and cardiovascular surgery also have high premiums due to the complexity and risk involved in these specialties. The New England Journal of Medicine reports that about 18.9% of cardiothoracic surgeons are sued for medical malpractice each year, making them the second-most sued specialty behind neurosurgeons.

Here are some of the specialties with the highest medical malpractice insurance rates:

Medical malpractice policies in New York, like most states, come in two forms: Claims-Made and Occurrence policies. Claims-Made policies are the most common and are usually less expensive, but they require Tail Coverage when the policy is cancelled.

Claims-Made policies provide coverage by the insurance company the physician was with at the time of a malpractice claim. This can be a problem if the doctor is no longer insured with the company or if it has become insolvent.

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Occurrence policies, on the other hand, provide coverage by the insurance company the physician was with at the time of the medical care or incident. These policies can be more expensive, but they don't require Tail Coverage at the time of cancellation.

Tail Coverage, also known as an Extended Reporting Endorsement, is an endorsement to a Claims-Made policy that provides coverage for claims that may be reported after the cancellation date. Tails can be permanent or limited to 2, 3, or 5 years, and they can be expensive, sometimes up to 200-300% of the policy premium at the time of cancellation.

Here are the details of the two types of coverage:

Tail Coverage can be offered for free in the case of retirement, disability, or death, but in other cases, it can be expensive. Some insurance carriers offer "Stand Alone Tails" which can be a lot less expensive than the standard Tail Coverage.

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If you're a New York doctor, you need to know about MMIP coverage. MMIP is a medical malpractice insurance pool that provides coverage to doctors, regardless of their claims history.

The MMIP pool was established by the New York Superintendent of Financial Services to address the state's lack of tort reforms and high payouts in medical malpractice lawsuits. This pool guarantees coverage for all doctors licensed to practice in New York.

You can't be denied a policy by MMIP, even if you have a history of multiple medical malpractice claims. However, you'll pay much higher policy rates, often double, triple, or more than four times the cost of a traditional policy from a private carrier.

Here are some key things to know about MMIP coverage:

You can save an average of 20% on medical malpractice insurance premiums by shopping around and comparing rates from multiple carriers.

In New York, medical malpractice insurance rates can be as much as 20-50% higher than in other states.

Top-rated carriers offer personalized service, quality coverage, and discounts for first-year physicians.

Multiple rate quotes can help you find the best premium for your practice.

Occurrence or claims-made coverage options are available, as well as tail coverage policies.

Discounts are available for physicians insured by carriers licensed in New York, including free excess coverage up to $1 million.

Tort reform in New York is a debated topic, with ongoing efforts to pass legislation that could benefit healthcare physicians.

Caps on punitive damages exist, but economic and non-economic damages are not capped, leading to large damage payouts to plaintiffs.

This can result in high medical malpractice insurance costs for healthcare physicians, making it difficult for them to operate in the state.

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New York doesn't have significant medical malpractice tort reforms like some other states, which means there are no caps on the total dollar amount of damages a patient can receive for pain and suffering.

The state has tried to implement reforms in the past, but they've had little or no impact on malpractice insurance rates. In the 1970s and mid 1980s, several bills were enacted to bring down premiums and eliminate frivolous malpractice cases, but they weren't successful.

One reform that has stayed in place is part of the Medical Malpractice Reform Act of 1986, which allows physicians and surgeons to apply for excess coverage of $1.3M/$3.9M in liability limits over and above the required minimum of $1M/$3M liability limits.

New York doctors need robust liability coverage due to the state's highly litigious nature, and they're at risk for financial disaster if they're not insured. In fact, the state consistently ranks number one for having the highest number of medical malpractice claims and amount of damages paid to plaintiffs.

In 2023, medical malpractice claims totaling $610.58 million were reported by the National Practitioner Data Bank, and in the first three months of 2024 alone, claims totaling $110.78 million were reported.

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Edgewood Healthcare Advisors is a team that connects New York physicians and physician groups with comprehensive medical malpractice insurance protection at a competitive price.

Their strong relationships with top medical malpractice carriers in the country become an advantage for doctors and surgeons. This means they can offer policies that protect physicians, clinics, and healthcare facilities in case a patient files a claim alleging negligence resulting in injury or harm.

New York doctors and surgeons have choices when it comes to medical malpractice insurance. Edgewood Healthcare Advisors makes sure they select the right kind of insurance with the features they need and the competitive premium rates they want.

Here are some of the groups Edgewood Healthcare Advisors works with:

Edgewood Healthcare Advisors helps these groups find the right medical malpractice insurance protection.