As a physician you may wonder if it is a good idea to finance your medical malpractice insurance premiums.  For some, the benefits of cash flow throughout the year outweigh the finance charges that are applied for monthly or quarterly payments.  Of course, you will want to find out how much it will cost you to spread the premiums out into payments before making a decision.  Also, compare the percentage rate charged by the insurance company to that of your own bank, line of credit, or a finance company specializing in insurance premium financing.   In some areas we are seeing free premium financing through the MedMal insurance companies — so in some cases quarterly and even monthly payments cost no more than paying in full. 

Having said that, it has been our experience that many physicians and groups pay the entire premium for medical malpractice insurance in one lump payment at the end of the year to get the benefit of the tax deduction for that year.  This can be a huge help when tax time rolls around in April.  Make sure you check with your tax accountant and a financial advisor to get in help in making this important decision.

The Keane Insurance Group offers medical professional liability insurance for any state and any specialty.  Contact us for more information.