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Why did my malpractice insurance premium go up?

Multiple factors can have an impact on malpractice insurance rates.

It can feel challenging when an insurance premium increases. Some things that raise the cost might be expected, like if you change your dental specialty or where your practice is located. But other factors are out of most policyholders’ control, like high-award verdicts and inflation. 
 
At TDIC, we don’t make rate changes hastily or lightly. However, we do review several factors before increasing future rates. TDIC analyzes our data to determine how much premium will be needed to cover claims in the future, taking into consideration: What is the frequency, severity and likelihood of future claims where you practice? Is the financial market, litigation climate or a trend in allegation severity causing costs to rise? We’ll use that data to inform our rates and keep pace with the level of protection our policyholders will need.

Understanding a rate change at renewal.

When claim costs are projected to go up, we raise our rates to make sure we can cover you – and your reputation – sufficiently if you face a claim. Factors include, but aren’t limited to:

  • Increased frequency and severity of malpractice cases with large payouts
  • Advanced technologies and increasingly complex procedures that bring new risks
  • Rising legal costs, such as expert witness fees, travel expenses and filing fees
  • Overall inflation that affects costs across professional, health and legal services
  • Changes to reforms intended to cap plaintiff awards and limit frivolous lawsuits 

Other rate factors at renewal.

  • Loss of discounts. TDIC offers several ways to get the most value for your policy dollar, such as discounts for bundling policies or completing a risk management seminar. If you’ve changed your insurance portfolio or haven’t completed an eligible seminar, these savings may no longer be available to you.
  • Change in scope of practice. Your rate could go up because you completed a specialty program or began offering additional types of anesthesia for your patients. 

Can my premium increase during my current policy term?

Your premium can only increase during the term if you make changes to your policy. These would include things like changing your practice location, your specialty or your anesthetic modalities or increasing your coverage limits.  

Other insurance premiums are going up for similar reasons.

Rising costs are also pushing up premiums for homeowners’ insurance, auto insurance and other professional policies like commercial property. 

Maximize savings to lower your premiums

Multipolicy discounts

When you bundle TDIC products, like adding Commercial Property, or Workers’ Compensation for California policyholders, you could streamline your coverage and save money on multiple premiums.

Risk management discounts

You may be eligible to earn C.E. and lock in significant savings on your Professional Liability premium by completing TDIC’s current risk management seminar – in person, live virtually or on-demand.

Savings for your stage of practice

Right-size your policy with discounts for part-time practice, faculty and military, as well as special malpractice rates to support new grads as they’re starting out.

Ensure your coverage keeps pace with your needs.

Request a free policy review to uncover gaps, better coverage options and other ways to save. Please contact your local insurance advisor who can help you navigate your coverage options and benefit from the best overall value.