Will Your Assets Be Protected?
Admitted vs. Non-Admitted Malpractice Insurance Companies
The purchase of your malpractice insurance is an important financial decision. Choosing the wrong insurance company could put you and your assets at risk.
When buying malpractice insurance, ask your agent if the policy is from an admitted insurance company. If not, ask why. If you have no underwriting issues, it’s inconceivable that you would be offered a policy from a non-admitted insurance company that would leave you unprotected if that non-admitted insurance company should go bankrupt. Here are some of the things you should consider when choosing a malpractice insurance company.
Admitted Insurance Companies
- Policyholders are protected by state insurance guaranty funds if the insurance company goes bankrupt or is financially unable to pay claims
- Premiums and comprehensiveness of policies are reviewed and approved by state departments of insurance
- Regulated by state departments of insurance
Regulated by state departments of insurance
- Non-Admitted Insurance Companies
- Policyholders are NOT protected by state insurance guaranty funds
- Policy may be offered only if an applicant has been declined by several admitted insurance companies
- May be the only option if applicant has an underwriting challenge, such as a claim that resulted from a breach in standard of care, substance abuse, or licensure issue
- Malpractice Insurer Oceanus Declared Insolvent
- Determining an Insurance Company's Financial Strength and Stability
- AANA NewsBulletin: Are You Paying Too Little For Your Malpractice Insurance?, September 2016
- AANA NewsBulletin: Is Your Insurance Company Secure?, July 2015
- AANA NewsBulletin: Risk Retention Groups - Are They Worth The Risk, September 2014