Medical Trust

Insurance Philosophy of Medical Malpractice Insurance

The basis of insurance is that people pool their resources in the event that one of the persons contributing to the fund will suffer a loss in the future.  Insurance was started in the 17th century in England at a coffee house that was run by Edward Lloyd.  This coffee house, later known as Lloyds of London, started by writing insurance on ships and their cargo. 

Today, insurance may be provided by many different vehicles -- an insurance company, insurance mutual, a reciprocal insurer, a mutual company, or a trust.  The Trust charges a premium to physicians based on three things: 


·       The Physician Specialty

·       The limit of liability

·       Years of retroactive coverage desired


Additionally, member physicians may choose a form of tail coverage -- either a tail that will be provided in the event of death, disability or retirement (after 5 years at any age), or a totally pre-funded tail such that if the doctor leaves the Trust, he or she will have coverage.