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The Fundamentals Of Medical Malpractice Insurance Cost: Tips To Be Prepared

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Medical malpractice insurance is an essential investment for most people in the healthcare industry, and it is one of the most important expenses that you will pay every year. However, do you actually know why you're paying the premium that you are? Most doctors secure medical malpractice insurance and don't give it a second thought, but the fact is that there are a few key contributing factors that directly affect how much you pay for your malpractice insurance. Here's a look at what you need to know about some of the factors that affect your cost.

Where You Practice

One factor you might not think of is the state that you're practicing medicine in. In fact, your state has a direct effect on the cost of your malpractice insurance. You'll find that states with more progressive and established tort reform laws will come with lower medical malpractice premiums than those states that haven't yet considered it.

In addition, your state will have its own mandatory minimum coverage. This can vary from state to state, and the higher the minimum coverage requirement, the higher your premiums will be. Those premiums are directly affected by your level of coverage, after all.

How Many Hours You Work

Part-time medical providers pay less for their medical malpractice insurance because they work fewer hours, therefore they have a lower risk. If you're a full-time medical care provider, you can expect to pay full premium rates, whereas someone who only works a few hours a week would receive a discount for their reduced working hours.

Your Chosen Field

It shouldn't be a surprise that the field you choose will affect your medical malpractice premiums. The higher the risk in your field, as with surgical, cardiac, and cancer fields, the higher your premiums are likely to be. Family doctors face less risk associated with their daily patient visits, so their premiums are typically risk-adjusted to be lower.

Your History

Have you ever had to file a malpractice claim before? If you have any history of medical malpractice claims or issues, you'll find that your premiums are higher because of the risk that's associated. Those with a clean history will often receive discounts on their premiums for being responsible policyholders.

These are a few of the factors that can contribute to the cost of medical malpractice insurance. Talk with your insurance provider today to see what factors might be affecting your premiums.