Physicians Who Need Big Malpractice Limits Can Now Play Ball

PRODUCT: Excess Physician Professional Liability

COMPANY: Pro-Praxis Insurance

BEST RATING: Nationwide paper (non-admitted): A+ (Superior), size XV

AVAILABILITY: Coverage is available through independent agents and brokers.

FOCUS: It was a dream nearly come true: a chance to work with NBA players. A small physicians group of orthopedic surgeons was ready and willing. But the NBA requires physicians who help team members to have $10 million in limits—the physicians’ insurer could only provide $2 million for any one claim.

“To help them, we provided an excess physicians professional liability policy of $8 million,” says Robert Allen, president of Pro-Praxis Insurance. “By providing them with these extra limits, the physicians were able to sign their contract with the NBA.”

Most pro sports associations require $5-10 million excess coverage for contracted physicians. Sometimes, so do hospitals. For example, a solo practitioner in New York state—who had $1 million in insurance through his risk retention group—needed another million when the hospital where he had privileges wanted $2 million in limits.

“We provided that extra million,” Allen says. “We’re a managing general agent that exclusively underwrites health care liability risks. Because we monitor litigation in the health care industry, we can effectively price excess coverage for everything from a primary care physician in Portland to a children’s hospital in Ronkonkama.”

This excess physician professional liability (XS PPL) coverage helps independent agents and brokers who, when they receive requests for higher limits, often struggle with a limited marketplace that offers standalone excess coverage and a small number of willing commercial carriers with which they may not be approved. In addition, when the current agent and incumbent carrier cannot support the request, large commercial brokers get involved.

Pro-Praxis offers XS PPL on a standalone basis. This means clients can purchase limits while the physician or physician group maintains their relationship with their long-time insurer.

“Simply put, the product helps independent agents and brokers maintain their health care clients,” Allen says. ”It’s available on an open-brokerage basis. As a subsidiary of a national wholesale broker, we will always be committed to independent agents.”

UNDERWRITING: Up to $10 million in limits available, attaching as low as $1 million per claim. Follow form coverage is available for primary policy forms that qualify. The applicant must provide a copy of its primary malpractice application, its current policy and loss runs, and evidence of surplus lines filing in order to obtain coverage terms.

MINIMUM PREMIUM: $5,000 minimum policy premium; $3,000 minimum premium for each $1 million in limit.

TARGET: The target client ranges from solo practitioners to specialty groups with 20 or fewer physicians, including medical specialties that have contractual obligations to carry high limits, such as sports medicine practitioners, orthopedic surgeons, emergency physicians and neurosurgeons. No solo OB-GYNs. Groups of five or more OB-GYNs are acceptable.

COVERAGE TERRITORY: All U.S. states.

CONTACT: Bob Allen, president; Pro-Praxis Insurance, 32 Old Slip, 5^th Floor, New York, NY 10005; 212-401-1561.

Ronimarie Acord is an IA contributor.