If you’re the CEO or CFO of a healthcare focused organization I’d like you to ask yourself, did you put the professional liability policy, also known as medical malpractice insurance, your company pays for in place or did you inherit them from your predecessor? Or your predecessor’s predecessor?
There most likely isn’t an issue with your policies themselves but, would you know how to identify an issue if there was one before you find out about it the hard way?
You may think I’m doubting your intelligence or experience but I’m not. I won’t pretend like I know or even understand every responsibility you have but I know that insurance is just one of the many functions that you are either solely responsible for or oversee. I’m also betting that it’s only near the top of your radar a few times per year at most.
In years past the two most common channels people in your shoes turned to for insurance were group purchasing, either through state pools, support organizations or risk retention groups, or working directly with insurance companies who provide the coverage you need.
These channels provided a streamlined buying process, discounted rates and even a great opportunity for creating long lasting relationships both with carriers as well as fellow members of your group purchasing pool.
However, as you know well, the healthcare landscape has changed dramatically over the last decade. Nuclear verdicts, a significant increase in contract labor, an increasingly litigious society, the never-ending advancement of technology, changes in patient demands & expectations along with a wide variety of other factors have all impacted your organization.
As such, there is no longer one strategy that makes sense for every organization. If you’re a member of a group, you may feel like you’re not as involved in the decision making as you’d like to be. Or, you may have seen your rates & eligibility for coverage impacted by your fellow members.
If you’re purchasing coverage directly from your carrier you may wonder how biased the information they provide is. After all, what incentive does your carrier have to tell you about the disadvantages to their policy? Unless you’re regularly seeing options from multiple direct channels, how sure can you be that their rates are competitive? Even if you are pursuing multiple options, are you able to confidently decipher the differences in policy language to determine how those differences impact your organization?
Working with insurance agents & brokers comes with a cost, the added commissions, but I believe it’s the most effective way to explore the options that make the most sense, examine and understand the differences between each option and develop creative solutions that will have a significant impact to the amount of coverage available to you as well as the rate you pay.
Not every agent/broker’s performance will justify the added cost of working with them but when you find one that does, it’s a game changer. In some cases even with the added 15% you’ll end up with better coverage and a better price. It’s also likely that you could end up uncovering an existing issue that could have cost your organization significantly more than 15% of your premium.
The key is to find the agent who’s willing to take the time to understand your needs, your plans, your struggles and your organization. The person who will be a relentless bulldog in pursuit of your best interests. The person who will advocate for you endlessly.
At WaFd Insurance Group we want to be your advocate, we want to not only understand but also meet your needs and we want to make sure you feel like the commission we earn is justified. If you have any doubts about your current policies, would like a comprehensive review & analysis of your current policies or have any questions call Drew Colwell at 406-204-3666.