WHO IS DOCSECURE?
DocSecure is a special purpose captive insurance company owned entirely by its insured physicians, each of whom owns stock in DocSecure. DocSecure is a unique malpractice insurance model, owned and operated by top physicians with the core belief of providing advantages over the traditional medical malpractice insurance market in corporate structure, product offerings, consistent and individualized underwriting principles, customer service, risk management and claims handling.
HOW DOES DOCSECURE PROVIDE INSURANCE?
Each DocSecure insured physician purchases insurance directly from Coverys, a traditional, insurance company authorized to write insurance in the state in which the insured physician is located.
DocSecure and Coverys have entered into a reinsurance contract under which DocSecure reinsures a portion of its physicians medical malpractice insurance coverage. This allows DocSecure to provide some of the insurance for its physicians, while having the ability to limit DocSecure’s losses through the terms of the reinsurance contract with Coverys. It is expected that as DocSecure grows it will assume an increasing percentage of the coverage written by Coverys for our insured physicians.
WILL DOCSECURE EVER ISSUE DIRECT POLICIES TO ITS INSURED PHYSICIANS?
As the DocSecure program grows, it could make sense to change the DocSecure program to have DocSecure issue a direct policy to each of its insured physicians and to utilize a company like Coverys as a reinsurer of DocSecure’s policies. This decision will be made by the DocSecure Board of Directors at the appropriate time.
WILL THE DOCSECURE PROGRAM ALWAYS BE BACKED BY A RE-INSURANCE COMPANY?
Yes, the DocSecure program will always maintain some level of reinsurance protection. This level may vary based on the size and financial assets of DocSecure, as well as its history of profitability. Reinsurance provides direct insurance companies with insurance of its own to cover higher layers of coverage. This helps to prevent a few very large losses from unduly affecting the financial results and viability of the overall program. Most insurers and reinsurers maintain some level of reinsurance for themselves regardless of their financial size.