FAQ's
What carrier are you sending me to? Are they financially sound?
Our admitted carriers typically have AM Best Ratings in the “A” range. This indicates solid financial stability. Many of our non-admitted carriers also have “A” ratings. PGI does not knowingly represent any company that does not have this type of rating.
What do these ratings mean?
These ratings are given by AM Best Company and are considered the benchmark in rating insurance companies’ financial stability. The ratings range from A++ to F.
What is the difference between Am Best's "A" range ratings?
The ratings of A++ and A+ indicate a Superior Rating. This means that the companies have been judged to have a superior ability to meet their ongoing obligations to policyholders.
The ratings of A & A- indicate and Excellent Rating. This means these companies have been judged to have an excellent ability to meet their ongoing obligations to policyholders.
Companies with AM Best ratings from A++ to B+ are considered to be "secure" and not at risk of defaulting on thier ongoing obligations to policyholders.
Please visit www.ambest.com for more details.
How long have the companies you represent been around?
Many of the companies we represent have been in existence more than 20 years. Some of their names have changed as they have grown or merged with other insurance companies to form more stable and secure resources.
What legal representation do your carriers use?
Insurance carriers use specialized council in any given state to represent physicians. In many cases, these law firms have offices in multiple cities and states, and are chosen by insurance carriers because they have high-level expertise in defending medical liability claims. At the time a claim arises, and the carrier is notified, the carrier immediately assigns the case to a chosen law firm so that there can be rapid response and preparations for further action.
What is meant by “soft” and “hard” market?
Hard and soft markets are a part of the insurance market cycle, and are a function of supply and demand. They are influenced by a variety of financial issues.
In a “soft market”, insurance companies (the underwriters) are eager to write new business and to hold onto existing business; and are likely to offer coverage improvements, increased discounts or credits and reduced premiums.
The spiral continues until there is no more room to cut prices and the “hard market” starts. There is usually an accompanying economic downturn connected with this market fluctuation which causes the change.
In a “hard market”, insurance companies will often increase premiums and take back some of the coverage enhancements they provided during the soft market.
This market condition may be caused by premium levels decreasing, which leads to decreased profitability changes in global financial conditions; reinsurance availability.
In any of these cases, it is important to have an agency that can research multiple options to provide you with competitive and adequate coverage.
How much experience does PGI have in Physician Liability?
The PGI team represents a combined 125 years of specializing in medical malpractice insurance.
Why do I have to fill all these forms out?
The detailed information that a physician is required to fill out on an insurance application is vital for the insurance underwriter. It provides our companies with information enabling them to make the best decisions, in terms of cost and available benefits. We want to ensure you receive the coverage that is best for your needs. The support staff at PGI can help you through this process.
When the time comes for renewal through PGI, our clients frequently only need to fill out an update form and/or a short renewal application from their current provider.
What enables your carriers to offer such competitive quotes ?
There can be a number of reasons for this. Some of the most common are:
Appetite for specialty: The company may have a greater number of specialists in your field than do other insurers, and may perform more thorough market risk evaluation which enables them to focus on your specialty. They also may be anticipating forward growth in your particular type of practice, thus acknowledging a good opportunity and favorable risk.
Geographic rating: Insurance companies frequently establish their rates by geographic territory, usually by state and county.
What is a Non-admitted carrier ?
An insurance company that is not admitted by the state is not subject to a number of the fees and contributions required to be an admitted carrier. This can allow them to pass on savings to a client. Non-admitted carriers are available through a third party, or surplus broker, which PGI can help facilitate. Non-admitted carriers carry the same ratings as do admitted carriers which PGI represents.
What happens if my insurance carrier goes out of business?
There have been times when carriers who have financial difficulties either go out of business, or, more commonly, cease offering coverage in the stage. In recent years, these cases have been very rare in Ohio, and the stability of the companies we represent help to ensure your selected carrier will be around for your needs.
PGI has experienced carrier termination and has responded quickly and pro-actively to provide new alternatives for our customers.
What’s the difference between claims-made and occurrence policies?
Claims-made policies provide liability coverage which is used in response to incidents or claims arising on or after the policy retroactive date and which are reported during the term of the policy.
The retroactive date determines how long before the inception of the policy that physicians are covered for negligent acts, error or omissions that are reported during the coverage provided by the policy. A retroactive date can match the policy inception date so that no prior acts are covered. Most medical liability companies will offer a free tail at retirement, subject to certain conditions.
When transferring coverage from one insurance company to another on a claims-made policy, it is important to have the new company “pick up” the retroactive date on the previous policy, so there is no protection gap.
If this is not possible, we recommend that our clients look into purchasing a “tail” to protect themselves from future claims which arise from the time the policy was active.
Occurrence policies provide coverage which responds to incidents/claims arising from the coverage period - regardless of when those claims are reported.
Physicians need not worry about canceling an occurrence policy and moving to a different insurer. Coverage remains locked in for incidents occurring while the policy was in force, so long as the insurer is in business.
When do I need to purchase a tail?
Normally a physician only need purchase a tail when they leave a practice that requires it by contract or when changing to a different policy form.
How do I qualify for a free retirement tail?
Many companies will provide a free retirement tail if a physician has been with them for 5 years and is at least 55 years of age, and is retiring completely from the Practice of Medicine.
Is there a discount for part-time?
Yes, part-time is frequently discounted, but rates vary depending on the company chosen.
Does my policy cover me if I start working at an additional location, or add procedures to my practice?
This depends on your coverage. It is important to notify your insurance company of any changes or additions in your practice profile. Depending on your individual policy, the company may or may not be able to cover you for your change. It is important to consult with your agent at PGI. We can help with guidance in understanding coverage changes.
Do I need separate coverage for allied medical professionals?
Generally, they are covered under your policy, as long as they are your employees and you have been notified by your agent. (See below.)
How much does it cost to insure a PA, NP or LPN?
Most NP’s and LPN’s are covered under the liability policy of the practice. PA’s frequently need separate coverage, although there are select companies that will include them under the main policy. The cost to insure a PA is generally much less than a physician or practice, but can vary depending on the company chosen. PGI will provide you with a number of choices for comparison whenever possible. Again, you must inform your agent of these ancillaries.