Physicians in Florida have a great opportunity to secure “tail” coverage for a lower price than physicians in other states. Because $250,000/$750,000 limits are considered a reasonable amount of insurance and the standard limits in Florida, most physicians carry those limits. The standard limits in other states are 4 times higher or 10 times higher in Virginia. The lower Florida limits make Florida a more attractive state to carriers. For example, there are 8 carriers that can offer Stand Alone “Tail” coverage in Florida compared to 3 in Virginia due to their higher limit requirement. Even though the standard Florida limit is $250,000 per claim / $750,000 annual aggregate, some physicians carry $1,000,000/$3,000,000 limits.
These physicians may be required to carry higher limits by a hospital or simply prefer higher limits. For these physicians, finding a lower priced “tail” option can be more difficult but not impossible. The amount of carriers that can offer higher limits decreases from 8 to 6. Since the underlying annual premium is higher for higher limits, the Stand Alone “Tail” premium will be higher. However, the saving percentage can still range from 10%-30% when we shop for coverage with all of the available carriers. The outlook is very good for physicians in Florida looking to obtain Stand Alone “Tail” Coverage. With the lower limits and high number of physicians, Florida will continue to be an attractive state for medical malpractice insurance companies. High competition means lower rates for physicians.
