What is a Medical Malpractice Insurance Premium?

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  • Written By: Mary McMahon
  • Edited By: Kristen Osborne
  • Last Modified Date: 01 February 2020
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A medical malpractice insurance premium is a periodic payment made on a malpractice insurance policy to keep it in good standing. Insurance companies have varying policies on billing and timing of insurance payments. People shopping for medical malpractice insurance can obtain a variety of quotes on premiums from insurance representatives and can ask for information on how the insurance company bills its policies. If a customer fails to pay a premium, the policy lapses, and coverage is no longer provided.

Medical malpractice insurance is a form of professional liability insurance for people who work in the health care profession. In the event of a suit claiming damages from a health care provider, the malpractice insurance can offer assistance with handling the suit in court, attempting to settle it if possible, and paying the damages if the court rules in favor of the plaintiff. Insurance companies usually work very hard on behalf of their clients to avoid a court case and payout.

The medical malpractice insurance premium can be billed yearly, biannually, or quarterly. Insurance companies may also offer monthly plans to help people manage their premium payments because premiums are often very high for this insurance product. The insurance company may offer an incentive like a discount on the medical malpractice insurance premium to people who pay for a year's worth of insurance at once, depending on the company's policies.


Many factors influence the size of the medical malpractice insurance premium. A care provider's record is important. Insurance companies take more of a risk when they insure people with a history of patient complaints and malpractice suits. Certain medical specialties are also more risky to insure than others, either because of the high damage awards typically offered in suits or because of the increased numbers of suits filed against people in those professions. Care providers seeking lower rates may be able to find them through bulk insurance negotiated by a professional organization.

If a care provider allows an insurance policy to lapse by not paying the medical malpractice insurance premium, an entirely new policy needs to be written. The insurance company may not offer the same terms or may opt to deny coverage. It is important to keep up with payments and prevent insurance policies from lapsing, as it will be harder to get insurance after a period of being uninsured. Not carrying insurance also exposes people to tremendous financial risk if a patient decides to file a lawsuit.



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