2 concurrent Malpractice policies?

[Tedic]

I was wondering how you handle 2 policies? For example, if you own your individual malpractice insurance but work part-time at a company that offers their own group malpractice insurance. Do you pick one?

I work in private practice and own my occurrence-based policy. It's a good one from a reputable company. I also work at a health center which offers a group claims-based policy with shared limits. Not as good. I originally had both policies for my health center gig thinking that I'd have double coverage, but recently my occurrence-based policy told me that I have to pick 1 and cancel the other. They mentioned how the policies may conflict if there's a lawsuit and it'd be messy. Anyone have experience or advice on this topic? I am thinking of requesting to cancel my health center claims-based policy as it's claims-based and group, but not sure if I'm overlooking something. There's an itch in me that feels weird cancelling it...

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[southerndoc]

Each policy is different. You should ask your carriers.

 

[Birdstrike]

I don't know the answer to your question, OP. But I went through a similar situation with disability insurance. During fellowship, I bought an individual own-occupation disability policy, so I would be insured at an attending salary, while a fellow getting PGY pay. When I took my post-fellowship job, that came with a group policy. I asked this same question, "Can I keep both?"

I was initially told, "No, you can't have two. They cancel each other out." We went 'round and 'round for a few weeks. It turned out that since I had the private, individual policy prior to taking my job, which covered 60% of my salary, and then added the second group policy which covered me at 60% of my salary, that I actually could keep both and be covered at 120% of my salary. This is only because one was a private policy I bought before my job and because the second policy was a group policy.

I still carry both policies to this day, one private, post-tax which would pay out tax-free, and the other, group policy pre-tax, which would pay out, but I'd be taxed on.

Perhaps this is a question you could ask of your job and insurance people.

 

[MD Financial Services Scott]

I was wondering how you handle 2 policies? For example, if you own your individual malpractice insurance but work part-time at a company that offers their own group malpractice insurance. Do you pick one?

I work in private practice and own my occurrence-based policy. It's a good one from a reputable company. I also work at a health center which offers a group claims-based policy with shared limits. Not as good. I originally had both policies for my health center gig thinking that I'd have double coverage, but recently my occurrence-based policy told me that I have to pick 1 and cancel the other. They mentioned how the policies may conflict if there's a lawsuit and it'd be messy. Anyone have experience or advice on this topic? I am thinking of requesting to cancel my health center claims-based policy as it's claims-based and group, but not sure if I'm overlooking something. There's an itch in me that feels weird cancelling it...

You can keep both. The employer plan will have issues that your individual does not. An example of that might be the group plan might state you have to be totally and or continually disabled to qualify for benefits, the individual probably states you have to have 15-20% loss of income to trigger benefits. The group plan won't be true own specialty, you may have to read the policy, not just the brochure/outline to see that. You will need to read what of your income is covered because most of the group plans will state 'covered income', if so, what is that? Finally read about the group plan income benefit offsets. The worst is when someone buys an association-based plan (which are group or franchised plans) and then has an employer plan thinking they are independent of each other, but the employer plan offsets for group or franchised plans.... It can be a real problem. If needed just find a good agent that knows how to deal with this topic and ask them for help.

 

[southerndoc]

You can keep both. The employer plan will have issues that your individual does not. An example of that might be the group plan might state you have to be totally and or continually disabled to qualify for benefits, the individual probably states you have to have 15-20% loss of income to trigger benefits. The group plan won't be true own specialty, you may have to read the policy, not just the brochure/outline to see that. You will need to read what of your income is covered because most of the group plans will state 'covered income', if so, what is that? Finally read about the group plan income benefit offsets. The worst is when someone buys an association-based plan (which are group or franchised plans) and then has an employer plan thinking they are independent of each other, but the employer plan offsets for group or franchised plans.... It can be a real problem. If needed just find a good agent that knows how to deal with this topic and ask them for help.

He was asking about two malpractice policies.

 

[MD Financial Services Scott]

My mistake, I 'replied' to Tedic but had just read Birdstrike's response... O well, glad it is Friday!