If a physician and surgeon malpractice insurance company in Florida is referred to as a “standard” carrier, it means that it is licensed with the Department of Insurance to write business in Florida. If a person cannot be written in the standard marketplace, because it is too big, too unusual, or too risky, it is placed with an insurer that is not licensed in the state. The Excess and Surplus Lines insurer can design insurance coverages and negotiate pricing based on the risk without having to file with the state Department of Insurance. Since these companies are not strictly regulated by the state, they are freed from the form or rate regulations imposed on licensed insurers. This gives them the freedom to design and price their policies, and, therefore, accept physician and surgeon malpractice risks that others will not accept.
Medical Malpractice Surplus lines companies are monitored for financial stability in the state where they are located. This is important because, if the insurer were to fail, there is no guaranty fund to protect the physician or surgeon. State insurance departments require surplus lines carriers to submit financial information, articles of incorporation, list of officers, and other general details. They also cannot write insurance that is typically available in the admitted market, are not protected by the state guarantee fund, may pay higher taxes, may only write a policy if it has been rejected by three different admitted carriers, and only when the medical malpractice agent placing the business has a surplus lines license. States keep a list of approved Medical Surplus Lines carriers, and business may only be placed with those approved carriers.
In order to purchase a Medical Malpractice Surplus Lines insurance policy, you must locate a surplus lines agent. These agents have extensive experience in placing business with surplus lines carriers, and can help you tailor insurance coverage to fit your needs.
Gracey-Backer, Inc. is experienced in placing Medical Malpractice policies with Surplus Lines carriers.