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Excess Liability Limits for Physician Groups

Thursday, October 26, 2023
Mike Madey

By: Mike Madey, MBA, RPLU, MJ; Vice President – Business Insurance

Historically, there has not really been an excess malpractice market for physician groups. Excess coverage was typically reserved for facilities such as businesses, hospitals, senior care, etc. However, in the past few years, this market has really begun to develop. Many primary players (Medical Protective, The Doctors Company, ISMIE) will offer up to $2 million on an individual limit basis and higher limits on a shared basis. For groups looking for higher limits, many carriers in the Surplus market will also offer capacity (Ironshore, Allied World).

While excess claims against individual physicians and physician groups are still rare, the large verdict mentality in the courtroom is alive and well and growing. Large verdicts (also known as nuclear verdicts) are becoming commonplace in almost all other casualty lines and are causing havoc in the reinsurance market.

Don’t assume that these types of verdicts are only found in major metropolitan areas – in 2017, there was a $1 million verdict against an anesthesiology group in Iowa. And just a few weeks ago, there was a $97 million verdict against an OBGYN group and a hospital in Iowa.  

I believe it is prudent for physician groups to begin exploring the excess market if nothing more than to familiarize themselves with the process and cost. Start the discussion now with your broker and get ahead of this growing trend.

Material posted on this website is for informational purposes only and does not constitute a legal opinion or medical advice. Contact your legal representative or medical professional for information specific to your legal or medical needs.