Policyholder Services

Does OMIC offer professional liability limits below $500,000 per claim?

OMIC has made the business decision that we will not offer primary liability limits lower than $500,000 per claim except in states in which the insured participates in that state’s Patient Compensation or Excess Liability Fund (Indiana, Kansas, Louisiana, and South Carolina) and, as a result, carries excess limits through the state. In our opinion, limits lower than $500,000 are not advisable as they may not provide adequate insurance protection. Although OMIC’s average indemnity payment is well below $500,000 ($157,591 as of December 2012), settlements and awards of greater than $500,000 are not uncommon. While many states now cap damages, such caps generally apply only to non-economic damages (pain and suffering). Economic damages, including costs of medical care and lost wages, are typically not subject to caps and can be substantial when the injury is severe. In addition to concerns regarding limit adequacy, there are also price factors to consider. Although limits of $250,000/$750,000, for example, offer half the coverage that limits of $500,000/$1,500,000 provide, the difference in premium between the two coverage limits is less than 20%. As a physician-owned insurance carrier, we feel we have an ethical responsibility to our insureds as well as a contractual one, and we believe offering limits below $500,000 per claim would be a disservice to our insureds.

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Six reasons OMIC is the best choice for ophthalmologists in America.

Consistent return of premium.

Publicly-traded insurance companies exist to make profits for shareholders while physician-owned carriers often return profits to their policyholders. Don’t underestimate this benefit; it can add up to tens of thousands of dollars over the course of your career. OMIC has one of the most generous dividend programs for ophthalmologists and has returned more than $90 Million to our members through dividends.