Mag Mutual Insurance: What You Need to Know

Malpractice is a necessary tool for every physician to have in their toolbox. It may even be a licensure requirement in your state. But, whether required or not, malpractice insurance providers like Mag Mutual offer peace of mind not just for you but for your patients, as well, because unexpected things do happen.

A doctor’s ultimate goal is to provide quality care to every single patient, but, just like any profession, things can go wrong sometimes. And malpractice insurance isn’t just for physicians. It is available for everyone, from surgical techs to nurse practitioners and physician assistants. Physicians can even offer it as a benefit to their employees.

Effective malpractice insurance provides full coverage should a patient or a patient’s family file a malpractice lawsuit. Some things a policy might cover include:

  • Attorney fees
  • Arbitration expenses
  • Medical damages
  • Settlement costs

An insurance plan will also cover any payouts given to the plaintiff by the courts, including punitive and compensatory damages.

The question isn’t should you have malpractice insurance, but what company offers a policy best suited to your needs. We can help. We are a resource you can come to and learn more about malpractice insurance. Let’s start with more information about Mag Mutual.


Who Is Mag Mutual?

Mag Mutual is the largest malpractice insurance provider in the United States. They are also a mutual company, which means the policyholders own it. So, when you sign up for a Mag Mutual malpractice insurance policy, you become a policy owner.

Mag Mutual started in 1982 and today serves as a lifeline for more than 30,000 healthcare providers. Physicians founded this company, so they have a reputation for knowing how to work within the industry to give healthcare providers the insurance assets they need to get the most from their business. For more than 40 years, they have been visionaries in the medical insurance industry and probably know what you need before you do.

You’ll find Mag Mutual’s corporate headquarters in Atlanta, GA, but they have independent agents in many states, mainly in the south. If you are considering buying more than one type of policy, it might make sense to get them all in one place, like Mag Mutual Insurance.

Mag Mutual has an A rating from AM Best but only a B- from the Better Business Bureau (BBB). They are also not BBB accredited.


What Kind of Insurance Does Mag Mutual Provide?

They offer a variety of insurance products.

Medical Professional Liability

This is the insurance most people think of when they hear about malpractice. This comprehensive coverage is about more than covering the costs of medical malpractice claims. The Mag Mutual Medical professional Liability plan also provides:

  • Dividends
  • Automatic malpractice coverage for new physicians to a practice
  • Free retirement tail after one year of coverage and age of 50
  • Automatic blanket locum tenens
  • Leave of absence benefits

They offer online resources such as an emergency hotline staffed by physicians, a Cyber Center, online courses and regional seminars, and staff training. Mag Mutual has an early intervention path and peer support group for doctors.

Hospital Professional Liability

Hospital Professional Liability is the Mag Mutual insurance that covers hospital malpractice liability. The plan covers the general and employee liability of the organization, including professional and Helipad.

Policy Owners with this plan get immediate dividend eligibility, coverage for employed and contract physicians and medical directors, and peer review and credentialing. In addition, they offer emergency first-aid coverage and defense cost reimbursements for a regulatory or disciplinary hearing.

Management Liability

Mag Mutual’s Management Liability plan covers organizations from federal, state, and regulatory challenges. For example, they would cover HIPAA claims and IRS investigations. They also handle antitrust lawsuits.

Businessowners

The Mad Mutual Businessowners policy is precisely what it sounds like. This insurance plan is a comprehensive business liability program for property damage, covering net income in case of a disaster to ensure employees continue to get their paychecks and cover injuries on the property.

Workers’ Comp

Worker’s Compensation insurance covers medical expenses and disability benefits for employees hurt on the job or who have work-related injuries.

Regulatory Defender

Regulatory Defender focuses on regulatory violations that healthcare organizations might face, such as HIPAA. In addition, this policy will reimburse companies for regulatory challenges or breaches, such as shadow audits and defense costs.

Cyber Plus

Data breaches and ransomware attacks are becoming more prevalent in the healthcare industry. This insurance plan will cover the organization if there is a data breach. It pays for lost assets and the financial impact of the breach, such as lawsuits.

Mag Mutual also offers online resources to help look for and prevent cyber attacks, including an expert panel of service providers and legal and IT specialists.


How Much Does a Policy Cost With Mag Mutual?

The cost will vary based on a number of factors.

Coverage

It will depend on the amount of coverage you buy. For example, someone buying $100,000 worth of malpractice coverage pays less than someone who purchases $1M.

Also, different kinds of policies fall under the category of malpractice. The size of the practice matters, as well. A policy customized to cover five physicians and staff will understandably cost more than one for an individual doctor.

Mag Mutual doesn’t list a coverage cap, so that may indicate it varies based on location. Since they offer coverage in many different states, their amount will be based on factors affecting liability in your area.

Your Specialty

Neurosurgeons perform more delicate procedures than primary care physicians, so their liability risk is higher. Most specialties will have a higher rate than primary care practices. Hospitals will pay more than individual physicians, as well.

Working Hours

A physician that works 80 hours a week is at a higher risk than one who works 20. This is because the longer you see patients or work, the higher your liability and the more you pay for your malpractice insurance.

They may break the coverage down based on full-time employment or part-time. It may also depend on how many different jobs you have as a healthcare provider. For instance, if you run a practice but also do nonprofit work, that may be an influencing factor.

If you contract with a practice, they may have insurance covering your service for them, but not elsewhere. This is also something the insurance provider, such as Mag Mutual, will consider when estimating your needed coverage and cost.

Individual or Group Policy

As a business owner, you can expect to pay more if you cover the entire practice. The more people on the policy, the higher the liability risk.

If you are only looking to cover yourself, that brings the price down. If you have an option for a group policy, it might save you money in the long run and provide you with more liability coverage, though.

Practice Location

This is a factor consistent throughout the insurance industry. Practicing in an urban area might have different risks than a practice located in a rural space. Other cities might come with various risk factors, too. You can break that down even further into communities in a town.

State Regulation

Different states have different rules that might affect the cost of a malpractice policy. Malpractice requirements and tort laws are the main regulators of the malpractice insurance industry.

For example, malpractice premiums are often cheaper in jurisdictions that have restrictions on how much patients can obtain in damages. On the other hand, you should expect to spend a little extra in places where there are no ceilings or limitations on malpractice cases.

The Insurance Market

The level of competition in the area will also affect rates. If you have limited options for malpractice insurance, common sense dictates that one or two providers in the area will charge more because there is no competition. If plenty of policies are available, the insurance companies will lower rates to make their policies more attractive.

Your Claim History

Like most insurance industries, the more liability claims you have, the more you pay for insurance. For example, someone with five car accidents on their record will pay more for car insurance than someone who has never had one.

A medical practice with five liability claims will pay more than one with none. Not all claims are equal, too. There is a difference between claims-made and occurrence-based, so that will factor in.

In many ways, medical malpractice insurance is no different than any insurance product. The higher your liability risk based on common factors, the more you will pay for the insurance. Ask an expert what policies are best for your needs. You can find out more information by contacting us, or downloading our ebook, The Physician’s Guide to Malpractice Insurance.


What are the Benefits of Using Mag Mutual Insurance?

In addition to the comprehensive insurance plans, policy owners at Mag Mutual have access to tools that help make their lives easier, such as the OneModel, which enables you to evaluate your liability risks. They also provide resources to help lower your insurance costs, like staff training. The Preserve Program provides early intervention to reduce liability risks.

When it comes to medical malpractice, a Mag Mutual policy has some bonuses, like dividends, free retirement tail after just one year of coverage, leave of absence benefits, and consent to settle malpractice claims.

They also offer resources to help physicians and other healthcare providers, such as CME seminars and an emergency hotline. Inline assessments and peer support programs.


Is Mag Mutual A Good Choice For Malpractice Insurance For Physicians?

There is no right or wrong answer to this question. Mag Mutual will be a good choice for many physicians. There is a reason they are the largest providers of malpractice insurance. They do have a limited coverage area, though. Mag Mutual covers:

  • Alabama
  • Arkansas
  • Florida
  • Georgia
  • Kentucky
  • North Carolina
  • South Carolina
  • Tennessee
  • Virginia

They are expanding all the time, though. So if you are unsure if you can get this insurance, talk to an expert. Also, remember that although Mag Mutual is a solid insurance provider, many are out there. It is critical that you explore all your malpractice insurance options before picking one.

Insurance is necessary for any healthcare provider, but you might need to think beyond malpractice. Some companies also offer to bundle your policy to ensure you get the best rates. For example, consider how you might protect your salary with disability insurance? Can you pair that policy with malpractice insurance to bring down your rates? You really can’t have too much insurance protection, so see what you need to keep yourself and your family safe.

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