Max Schloemann, founder of MEDPLI, was featured by Property Casualty 360, a leading source of insurance news for insurance agents and brokers, on how moving across state lines can affect medical malpractice insurance rates and tail insurance for physicians, surgeons, and other medical professionals.
Doctors that are considering a job change should contact a broker to review their unique situation and get an estimate of future costs. Sometimes moving states can result in unexpected and unpleasant expenses, and physicians need to be armed with all the correct information and available options before they commit to a change.
“Miami is a highly litigious area, so doctors can expect to pay more for coverage,” Max gives as an example. “Many times if the doctor is moving from the Northeast it is less expensive in Florida, but if they are coming from Texas or California they will likely see an increase in price for coverage.”
Other factors that contribute to premium variance across states include the frequency and severity of claims, plus rising claims and defense costs.
Doctors also need to review their initial employment packages for their tail coverage benefits, which may or may not be paid for by the employer, partially or in full, depending on the package. Tail insurance usually costs between 200-250% of the expiring premium, so it’s critical to consult with an independent insurance insurance broker who can explain your options before you decide to change jobs, Max explains.
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