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NY Medical Malpractice: Professional Entity Coverage

NY Medical Malpractice: Professional Entity Coverage

8 Jan 2015
8, Jan Jan, 2015

Do you need to cover your Professional Entity against potential malpractice lawsuits?

It is important for physicians and practices to understand ‘who’ and ‘what’ is covered under a medical malpractice insurance policy, as well as the limits and exclusions.

Practices should strive to obtain coverage for the physicains, the Entity (LLC, Partnership or Corporation, PC), as well as any licensed employees.

An employer can be held liable for the acts of the employees. If there is a professional corporation or Entity, that Entity may hold the business assets or accounts receivable. It is quite conceivable that the Entity may be named in a lawsuit that is primarily against one of the physicians or employees of the Entity. This makes it extremely important to ensure that the issue of Entity coverage is addressed in your malpractice policy.

Most malpractice insurance carriers offer entity coverage with shared limits to solo practices, usually without charging additional premiums. However, if there are two or more practitioners in the group, you can get separate limits of liability for the Entity. This Entity coverage is offered at no additonal premium by some carriers, while others may charge upto an additional 10% of the groups total premium to add this coverage.

Separate limits of coverage of $1M each claim/$3M Aggregate may be available to a Professional Entity. A Professional Entity is the ‘Professional service corporation (PC), Professional LLC, Partnership or LLP’ of an insured physician.

To be eligible for coverage, the Professional Entity must meet the following eligibility requirements:

PRI (Physicians’ Reciprocal Insurers)

PRI provides Entity coverage to a physician groups (such as a PC or PLLC) for no additional charge. The physicians and extenders in the group would have to meet PRI’s underwriting criteria AND be insured by PRI in order to qualify for this coverage. This is a huge savings for groups: Some other carriers can charge upto 10% of the total premiums to add Entity coverage.


MLMIC can provide Entity coverage for an additional charge. This premium charge is calculated as a percentage of the total premiums for all physicians in the group combined. Additionally:

  • MLMIC must insure at least 75% of the members and/or employed physicians of the entity;
  • The Professional Entity must be incorporated in NY State;
  • Members and employed physicians, surgeons or physician extenders in the practice must be acceptable based on MLMIC’s underwriting standards; and
  • All members, employed physicians and/or physician extenders must carry individual limits of insurance of at least $1M/$3M.

Risk Retention Groups:

Entity coverage guidelines differ amongst RRGs. While most RRGs (Such as Medpro RRG) offer separate limits of coverage for the Entity, the additional premiums charged may differ from one carrier to the other. It would be advisable to review all possible options before deciding on the best possible malpractice insurance solution for your practice.

For more information, and to explore all your options, please contact PriMed Consulting at 800.528.3758. Email: PriMed Consulting is an independent medical professional liability agency, serving NY & NJ.

Source: Carrier websites

MDAdvantage Receives A- (Excellent) Rating from A.M. BEST

29 Oct 2012
29, Oct Oct, 2012

October 24, 2012 A.M. Best, the nation’s most recognized insurance rating organization, assigned MDAdvantage an initial financial strength rating of A- (Excellent with a stable outlook.

A.M. Best recognized MDAdvantage’s recent strong operating performance, supportive capital position and favorable reserve development. In addition, A.M. Best also recognized the company’s dedication to risk management, its conservative investment portfolio, and commitment to sound underwriting and claim management principles. MDAdvantage’s experienced management team, with an in-depth knowledge of the New Jersey medical professional liability environment, was also acknowledged as a positive factor by A.M. Best.

MDAdvantage Insurance Company of New Jersey, a leading provider of New Jersey malpractice insurance, is committed to enhancing physician education, improving physician-patient communication and helping patients make better-informed decisions.

For more information, please contact PriMed Consulting. PriMed is an independent medical professional liability agency, with access to several reputable medical malpractice insurance carriers in NJ & NY. Phone: 800.528.3758. Email:

NY Medical Malpractice: Excess Coverage & Important Changes

21 Sep 2012
21, Sep Sep, 2012

As restrictions have been put in place to limit the number of “Excess Slots”/physicians receiving free Excess Coverage, the need for “Paid Excess” has arisen.

Therefore, if a physician does not qualify for Section 18 coverage/free excess coverage the option is available to purchase “Paid Excess.” In addition to your primary limits of liability (1.3/3.9 million dollars) this provides an additional layer of $1 million dollars per claim / $3 million aggregate limit. This takes the standard policy limit from $1.3/3.9 to $2.3/6.9.

Premiums for excess coverage are determined based upon your specialty and the county in which you practice. As long as you carry a policy with an admitted carrier you will be eligible to purchase excess coverage. After completing a brief application we will be able to present you with quotes and help you to bind coverage.

PriMed Consulting can help you to explore your options for Excess Coverage. Please contact us to obtain a quote and put your excess policy in place.

In order to qualify for the FREE/UNPAID NYS Excess Liability Program (Section 18), you must have:

  • a primary affiliation with a New York state general hospital having professional privileges
  • a qualifying individual primary policy of $1.3 million per claim/$3.9 million aggregate
  • completed a qualified risk management program within the last two years

This Excess medical malpractice insurance program is frequently referred to as the NYS Section 18 Program. Consistent with Section 18 Legislation, this is an Occurrence policy provided at no additional cost to physicians, so there is no tail™ required at the conclusion of the policy.

The State of New York has implemented a three year rule for medical malpractice Excess insurance applicants for the 7.1.2012 – 7.1.2013 policy year. In order to get the free excess coverage, physicians and surgeons would need to have had an Excess policy for all or part of each of the previous 3 years:

7.1.2009 – 7.1.2010
7.1.2010 – 7.1.2011
7.1.2011 – 7.1.2012

If you satisfy the new rules concerning past coverage and are eligible for the Excess coverage as outlined above, you should receive your coverage. If you do not, you are not guaranteed an Excess policy for 2012-13. Applications for those physicians who do not meet the above criteria will be held pending a decision by NY State later this year.

For more information on your primary medical malpractice insurance and/or excess coverage, please contact PriMed Consulting at 800.528.3758 or email:

Medical Malpractice Insurance for OB/GYN Physicians

12 Sep 2012
12, Sep Sep, 2012

Obstetricians and Gynecologists often find themselves in a crisis situation, facing astronomical medical malpractice insurance premiums, and the potential for damaging lawsuits.

Unfortunately, medical malpractice insurance premiums for OB/GYN physicians will probably always be high. Why? Because OB/GYN physicians face incredibly high risks due to the nature of their specialty.

Many medical incidents are beyond the control of OB/GYN physicians, especially during the delivery phase of a pregnancy. With many serious complications linked to babies due to the unavoidable/unforeseeable risks associated with birth, it comes as no surprise that OB/GYN physicians face great potential for lawsuits related to pregnancy/delivery complications – so great, that many OB/GYNs have given up practicing Obstetrics.

Whether at fault or not, many OB/GYNs believe they have little chance of triumph in the courtroom; and yet, are understandably reluctant to consent to a settlement when they believe they did nothing wrong and provided the due standard of care to their patients. Due to inevitable claims, it is extremely imperative that OB/GYN physicians seek the best possible medical malpractice insurance company they can find with a specialized team of attorneys to defend them against lawsuits.

While it may seem like there is no winning med-mal solution for OB/GYN physicians, especially in NY, there are alternative options available including special Discounts and Risk Management courses. Due to the high premiums OB/GYN physicians face, there is oftentimes potential for substantial discounts. Also, many carriers offer innovate risk management tools specifically designed for OB/GYN physicians to reduce their risks – especially risks associated with delivery.

PriMed Consulting works with several experienced, competitive, state admitted med-mal carriers and RRGs in NY and NJ with viable options for OB/GYNs.

If you are an OB/GYN physician looking for malpractice insurance, contact PriMed Consulting to help you determine the most viable med-mal coverage options for you and your practice.

How the MedPro-Princeton Merger Benefits NJ Physicians

31 Aug 2012
31, Aug Aug, 2012

In January 2012, Princeton Insurance was acquired by Medical Protective/Berkshire Hathaway, which has resulted in enhanced product offerings and greater financial strength for their policyholders. The recent transaction will help New Jersey physicians and healthcare providers confront the challenges they face in a changing healthcare environment. Princeton Insurance has continually been recognized for its excellent customer service as well as Competitive Medical Malpractice coverage for New Jersey physicians especially in primary care specialties, such as Internal Medicine, Family Practice, and Pediatrics. Princeton Insurance is rated A+ (Superior) by A.M. Best.

What are the benefits?

  • Part-time rates can still be calculated as 21 hours or less per week (as they always have been) or can be calculated as 1,092 hours per year, which works well for physicians that travel for part of the year but work full/heavier weeks while in town.
  • Doctors who are on a Claims-Made Policy and switch in to Princeton Insurance Company, a division of MedPro, can qualify for a free tail fully earned after only 1 year with Princeton if they have a retroactive date from 48 months prior. Also, the age requirement of 55 has been removed. There is no longer an age requirement.
  • The new doctor discount has been extended into the doctor’s 3rd year in practice (was formerly 2 years). Now, a new doctor gets a 75% discount for their first year in practice, 30% in their second year, and 15% in their 3rd year.
  • New Jersey policyholders will still experience the sound service long-provided by Princeton Insurance, but will also receive the medical malpractice coverage benefits that MedPro/Berkshire Hathaway offers. The MedPro-Princeton combination marks a win for all NJ policyholders, who will continue to receive the same excellent service they have come to expect along with additional coverage services, resources, and enhanced protection

To obtain a quote from Princeton Insurance, please contact PriMed.

About Princeton Insurance

Princeton Insurance Insurance is the largest healthcare professional liability insurer in New Jersey, serving the state’s hospitals and individual medical and healthcare professionals continuously since 1975. With responsibility for over 19.000 healthcare providers and approximately $150 million in annual premium, Princeton is New Jersey’s leader in professional liability coverage and risk solutions for healthcare providers, including hospitals physicians, dentists, chiropractors, optometrists, podiatrists, and other healthcare facilities. Princeton Insurance is a MedPro/Berkshire Hathaway company with an A+ (Superior) rating from A.M. Best.

NJ Physicians: MedPro-Princeton Merger Yields Superior Financial Strength Rating

29 Aug 2012
29, Aug Aug, 2012

In January 2012, Princeton Insurance and Medical Protective (MedPro) merged operations in New Jersey to offer physicians a medical malpractice coverage option with a carrier of superior financial strength. In May 2012, the independent rating agency, A. M. Best, assigned Princeton Insurance a financial strength rating of A+ (Superior) with a positive outlook.

In their announcement, A.M. Best stated: The ratings take into consideration Princeton’s stand-alone attributes and the enhancement provided by its affiliation with The Medical Protective Company, their ultimate parent, Berkshire Hathaway Inc. and the future benefits to be derived from these relationships…The ratings also consider Princeton’s supportive capitalization, leading market presence in New Jersey and its much improved operating performance over the most recent five-year period. The positive outlook, is based on A.M. Best’s expectation of improved performance as Princeton deepens its relationship, both operationally and financially, with the related companies.

MedPro is a national leader in primary medical professional liability coverage and risk solutions for healthcare providers, including physicians, dentists, chiropractors, optometrists, podiatrists, other healthcare professionals, hospitals, and other healthcare facilities. MedPro has been protecting the assets and reputations of healthcare providers since 1899. Their offerings include professional liability insurance on both claims-made and occurrence forms.

MedPro is a national leader in primary medical professional liability coverage and risk solutions for healthcare providers, including physicians, dentists, chiropractors, optometrists, podiatrists, other healthcare professionals, hospitals, and other healthcare facilities. MedPro has been protecting the assets and reputations of healthcare providers since 1899. Their offerings include professional liability insurance on both both claims-made and occurrence forms.

Princeton Insurance has a 35 plus year history of local presence and dedicated service to physicians in New Jersey, with local expertise and long-term relationships. MedPro has industry leading financial strength and the expertise that comes from a century of service and a national presence. With Princeton and MedPro working together, physicians can feel assured and expect innovation that will lead the industry in meeting the needs of all types of healthcare providers.

If you think Princeton Insurance may be a suitable fit for you and your practice, contact us for further information.