Beware of the Cost of the Lowest Price

You purchase malpractice insurance hoping you won't need it. So, if you are looking to contain costs, a lower-priced policy may attract your attention. But have you considered the high cost of the lowest price?

Insurance

Beware of the Cost of the Lowest Price

One tough part of being a Doctor of Chiropractic is weighing the actual cost of a business expense. Something like paper towels and office supplies can be purchased for less because you choose a different brand, encounter a sale or purchase in bulk. This makes it easier to make adjustments to your budget when your cash flow tightens.


Unfortunately, insurance doesn’t work that way. You purchase policies like your malpractice insurance in case something might happen, although hoping that it won’t. So, if you are looking to contain costs, a lower-priced insurance policy will attract your attention as you’re comparing options. But is saving a couple hundred dollars now worth it in the long run?

As NCMIC policyholder Bruce Bond, D.C. noted, “As I told my son, malpractice is part of your expense to get in practice for the rest of your life. You don’t cut on your health insurance, why would you cut corners on your malpractice?” 

So, what should D.C.s be considering when comparing malpractice policies?

  • Expertise. Not all malpractice professionals are created equal. If you face a claim or go to mediation or court, who do you want by your side? Someone who is knowledgeable about chiropractic care? The length and type of malpractice experience of the team you will be working with is important to know before you purchase a malpractice policy.
  • Resources. Sometimes you just have a question about the "what ifs" in your day-to-day practice. What type of resources does the insurance carrier have available for those types of questions. Getting the answers you need may help you avoid a claim.
  • The fine print. One of the most significant factors of costs comes down to what is in the fine print. If you don’t understand the coverage, ask questions until you do.
  • Stability. Do some research to ensure the insurance company is reputable and reliable in terms of financial stability. Checking out A.M. Best (insurance rating agency) is a good place to start.

Still have questions about how to evaluate your malpractice policy? Don’t hesitate to contact NCMIC at 800-769-2000 ext. 3555.  We can answer your questions as well as help compare your options.


The information in the NCMIC Learning Center is offered solely for general information and educational purposes. It is not offered as, nor does it represent, legal or professional advice. Neither does this information constitute a guideline, practice parameter or standard of care. You should not act or rely upon this information without seeking the advice of an attorney familiar with the specific legal requirements of the state(s) in which you practice. If there is a discrepancy between the site and an insurance policy you have with NCMIC, the policy will prevail.