Working with an independent broker who is an expert in the healthcare marketplace can save your practice money and time when buying a tail policy. Here are some of the stories of how approaching multiple markets for your stand alone tail quote can benefit your practice:
Physician Group Merger
A four person orthopedic surgery group agreed to merge with a much larger group who required them to “tail out” their current policy. Their carrier of many years quoted $212,000 for an unlimited tail. They received options for identical coverage at $168,000 from an independent broker. After discussions the group decided to purchase a 5 year tail instead of unlimited and lowered the premium further to $147,000.
Physician Group Hired by Hospital
A large multi-specialty group was looking to merge with a regional health system who owned a captive insurance company. The group’s long time insurance carrier quoted $2.1M, the hospital captive quoted $1.95M and a third party underwriter offered $1.62M.
Single Physicians Moving to New Employer
-Single OB/GYN quoted $91,000 and purchased a stand alone tail policy for $74,000
-Single Podiatrist quoted $28,000 and purchased a stand alone tail policy for $19,000
-Single Neurologist quoted $134,000 and purchased a stand alone tail policy for $94,000