SERVICE STANDARDS

Several months before my homeowner’s insurance was set to renew, I received a call from Brittany, my insurance agent. She wanted to warn me that I would likely experience sticker shock when my renewal notice arrived, showing a 35% premium increase from the prior year.

I was ready to hang up and start calling other agencies. Then Brittany informed me she had prepared a complete analysis of my homeowner's policy with comparison quotes from similarly rated underwriters. She reviewed the quotes with me, then walked me through my current policy line by line to see where I was over-insured or underinsured. Although I wasn't happy paying $1,500 more for my home insurance, my urge to find a lower premium subsided. I understood the situation and felt Brittany had earned my trust and business.

Your clients are no different. They might not be surprised by a reasonable increase in their MPL premium given the continued increase in claim severity nationwide. Still, it's best to reach out proactively to address any potential concerns, as the idea of what's reasonable is subjective. Timing is crucial in retaining or acquiring business from physicians, as they tend to quickly look for alternatives if they're dissatisfied or uncertain about a product or service.

Approach clients with the confidence that you’re prepared to help them identify, understand, and work through any concerns. While it's likely that they’re already familiar with new or changed laws or circumstances increasing liability risks and MPL insurance premiums, don't assume they've connected the dots with how and why they're affected. Make sure they understand the whole story as it relates to them. Just as Brittany did with me, let them know that you've reviewed their coverage and are ready to assist them in assessing their situation.

Here are some examples of situations that could impact MPL insurance needs and premiums in 2023:

• Providers are likely familiar with the recent changes to California's Medical Injury Compensation Reform Act (MICRA), but do they understand how this affects their medical professional liability coverage? For example, the increased caps allow plaintiff's attorneys larger fees due to increased non-economic damages and the ability to stack. What can you discuss or provide to help them take any necessary actions regarding their coverage?
  
  
• Do providers in states with increased litigation understand the implications for them? In Pennsylvania, for example, the Supreme Court's elimination of the venue rule requiring plaintiffs to file liability lawsuits in the county where the treatment occurred has led to venue shopping, where plaintiff’s attorneys file in a county favorable to plaintiffs. Do providers in rural areas understand how lawsuits filed in a city like Philadelphia increase the potential risk that they will suffer a more severe verdict?
  
  
• The recent COVID-19 pandemic led to shortages of healthcare personnel that can and have led to medical malpractice through understaffing, dangerous conditions, negligent hiring or training, poor record keeping, patient falls, medication errors, missed diagnoses, and surgical mistakes. If working with traveling nurses or locum tenens, what steps can providers take to minimize medical errors and associated liability?
  
  

Clients may not always welcome discussions about premium increases or the need for more coverage, but these situations provide opportunities to strengthen relationships and build trust. They also help clients better understand their MPL policy's value and why ensuring appropriate liability protection is more important than ever.