MEDICAL MALPRACTICE INSURANCE CASE STUDY
Suburban Medical Centre at $1.4M Revenue, Three Markets Quoted and $10M PI With $20M PL Placed
A general practice medical centre reviewed its medical indemnity and business pack together. Three specialist markets quoted different limits and structures, and the comparison had to be built limit by limit before a price meant anything.
THE SITUATION
A medical centre in Sydney with revenue of around $1.4 million asked Tank Insurance to review its medical indemnity and business pack cover at renewal. The expiring medical indemnity was around $4,500 with a separate business pack of around $1,300.
OUR APPROACH
- The medical malpractice risk went to three specialist markets, and all three referred it for underwriter review before quoting.
- Three quotes came back on three different bases: approximately $4,500 for $10 million PI only or $5,800 for $20 million PI only; approximately $8,400 for $10 million PI with $20 million public liability; and approximately $11,400 for $20 million PI only, from inception, with the previous retroactive date available subject to prior insurances.
- The comparison was built limit by limit, including whether public liability was inside or outside each quote and how the retroactive date would be treated.
- The PI and the business pack were split into separate placements so each could be tested on its own.
THE CHALLENGES
The three quotes here did not line up. One market prices PI only, another bundles liability, a third writes a higher limit from inception. The cheapest headline figure here was PI only at $10 million; adding $20 million public liability from a business pack changes the total, and the retroactive date changes what is actually covered. The client needed the whole picture, not the lowest number.
THE OUTCOME
$10 million medical malpractice professional indemnity with $20 million public liability was placed with Keystone at a combined premium of approximately $8,400 a year.
Final Solution: $10 million medical malpractice PI and $20 million public liability for a suburban medical centre at around $8,400 a year, chosen against a $10 million PI-only option at around $4,500 and a $20 million option at around $11,400.
This case records one historical outcome; current insurer appetite, premium, timing and terms depend on the complete risk at the time of application.
For the wider buying context, see our medical malpractice insurance guide.
MEDICAL CENTRE QUESTIONS
What this placement answers for other medical practices
How much does medical malpractice insurance cost for a medical centre?
Does a medical centre need public liability as well as medical malpractice cover?
What is a retroactive date on medical malpractice cover and why does it matter at renewal?
MEDICAL MALPRACTICE INSURANCE
Put this placement in context
Case-study results are historical and are not a promise of current pricing, capacity or policy terms. This page is general information only and does not take account of your objectives, financial situation or needs.
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