Medical Protective
Encyclopedia
Medical Protective is an American
liability insurance
company for physician
s and dentist
s. Medical Protective traces its roots back to a predecessor company, the Physicians’ Guarantee Company. Alpheus P. Buchman, MD and Miles F. Porter, MD, both of Fort Wayne, Indiana, formed the Physicians' Guarantee Company in 1899 to provide pre-paid legal defense services for medical malpractice lawsuits. The company is considered one of the first companies to offer pre-paid legal defense services in the United States. In 1902, Physicians’ Guarantee Company changed its name to the Physicians’ Defense Company. In 1907, Byron H. Somers and Charles M. Niezer left the Physicians Defense Company and founded The Medical Protective Company and in 1913, Medical Protective acquired Physicians Defense Company. Byron Somers and by his descendants ran Medical Protective until 1998 when General Electric
purchased the company. In 2005, Warren Buffett
's Berkshire Hathaway
purchased the company for $825 million.
It has annual premium
s over $700 million and statutory assets over $2 billion. Its products are underwritten
by the Medical Protective Company and are distributed through a network of employee market managers and appointed agents. Company headquarters is located in Fort Wayne, Indiana
.
1902 - PGC changes its name to Physicians' Defense Company (PDC), with Dr. Miles F. Porter as President, and Dr. Charles A.L. Reed (President of the AMA) on the board of directors.
1907 - Medical Protective is founded by Byron H. Somers and Charles M. Niezer and offers pre-paid legal defense coverage to healthcare providers.
1910 - Medical Protective expands expands coverage to include indemnity coverage. Medical Protective offers medical professional liability insurance policies with limits of $5,000/$15,000 for $15 a year.
1913 - PDC merges with Medical Protective
1920s - Byron H. Somers leads Medical Protective and the company becomes the largest insurer of healthcare providers in 17 states.
1930s - Medical Protective introduces a much broader coverage policy and helps shape the defense of medical practitioners; provides the first "medmal bible" to the industry, named "Brief on Malpractice Law."
1940s - Medical Protective defends well over 50,000 claims and provides physicians and dentists with continued coverage during their WWII military service.
1950s - Always with a vision towards the future of healthcare, Medical Protective begins insuring residents and interns during their training.
1960s - Medical Protective begins to expand coverage and increase limits and continues its national leadership position.
1970s - Medical Protective is one of the few carriers to survive the increasing number of medical malpractice suits that results in the industry's "first crisis."
1980s - While many carriers exit the market during the industry's "second crisis," Medical Protective continues to offer occurrence coverage and to award claim-free credits for policyholders without losses.
1990s - Focusing on the continuum of care, Medical Protective begins to insure small and community-based hospitals.
1998 - General Electric
purchases Medical Protective and expands coverage countrywide.
2001 - Recognizing technology advancements, Medical Protective offers online risk management CME courses, and STATUS online coverage application.
2002 - While St. Paul Travelers
and others exit the market during the industry's "third crisis," Medical Protective adds policyholders and expands to meet the needs of healthcare providers.
2005 - Medical Protective is purchased from GE
by Warren Buffett
's Berkshire Hathaway
. Insureds have the long-term confidence that comes from being with Fortune Magazine's "World's Most Admired Insurer."
2006 - Rating agencies S&P and A.M. Best
assign the highest financial strength ratings to Medical Protective, "AAA" and "A++" respectively.
2007 - Medical Protective insures stand-alone surgery centers, cancer treatment centers, dialysis centers and imaging centers, and forges partnerships with specialty organizations and associations to offer solutions to their members.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
liability insurance
Liability insurance
Liability insurance is a part of the general insurance system of risk financing to protect the purchaser from the risks of liabilities imposed by lawsuits and similar claims. It protects the insured in the event he or she is sued for claims that come within the coverage of the insurance policy...
company for physician
Physician
A physician is a health care provider who practices the profession of medicine, which is concerned with promoting, maintaining or restoring human health through the study, diagnosis, and treatment of disease, injury and other physical and mental impairments...
s and dentist
Dentist
A dentist, also known as a 'dental surgeon', is a doctor that specializes in the diagnosis, prevention, and treatment of diseases and conditions of the oral cavity. The dentist's supporting team aides in providing oral health services...
s. Medical Protective traces its roots back to a predecessor company, the Physicians’ Guarantee Company. Alpheus P. Buchman, MD and Miles F. Porter, MD, both of Fort Wayne, Indiana, formed the Physicians' Guarantee Company in 1899 to provide pre-paid legal defense services for medical malpractice lawsuits. The company is considered one of the first companies to offer pre-paid legal defense services in the United States. In 1902, Physicians’ Guarantee Company changed its name to the Physicians’ Defense Company. In 1907, Byron H. Somers and Charles M. Niezer left the Physicians Defense Company and founded The Medical Protective Company and in 1913, Medical Protective acquired Physicians Defense Company. Byron Somers and by his descendants ran Medical Protective until 1998 when General Electric
General Electric
General Electric Company , or GE, is an American multinational conglomerate corporation incorporated in Schenectady, New York and headquartered in Fairfield, Connecticut, United States...
purchased the company. In 2005, Warren Buffett
Warren Buffett
Warren Edward Buffett is an American business magnate, investor, and philanthropist. He is widely regarded as one of the most successful investors in the world. Often introduced as "legendary investor, Warren Buffett", he is the primary shareholder, chairman and CEO of Berkshire Hathaway. He is...
's Berkshire Hathaway
Berkshire Hathaway
Berkshire Hathaway Inc. is an American multinational conglomerate holding company headquartered in Omaha, Nebraska, United States, that oversees and manages a number of subsidiary companies. The company averaged an annual growth in book value of 20.3% to its shareholders for the last 44 years,...
purchased the company for $825 million.
It has annual premium
Insurance
In law and economics, insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the...
s over $700 million and statutory assets over $2 billion. Its products are underwritten
Underwriting
Underwriting refers to the process that a large financial service provider uses to assess the eligibility of a customer to receive their products . The name derives from the Lloyd's of London insurance market...
by the Medical Protective Company and are distributed through a network of employee market managers and appointed agents. Company headquarters is located in Fort Wayne, Indiana
Fort Wayne, Indiana
Fort Wayne is a city in the US state of Indiana and the county seat of Allen County. The population was 253,691 at the 2010 Census making it the 74th largest city in the United States and the second largest in Indiana...
.
History
1899 - Recognizing that healthcare providers are increasingly being sued, Dr. Alpheus P. Buchman and others create Physicians' Guarantee Company (PGC) to provide pre-paid legal defense coverage.1902 - PGC changes its name to Physicians' Defense Company (PDC), with Dr. Miles F. Porter as President, and Dr. Charles A.L. Reed (President of the AMA) on the board of directors.
1907 - Medical Protective is founded by Byron H. Somers and Charles M. Niezer and offers pre-paid legal defense coverage to healthcare providers.
1910 - Medical Protective expands expands coverage to include indemnity coverage. Medical Protective offers medical professional liability insurance policies with limits of $5,000/$15,000 for $15 a year.
1913 - PDC merges with Medical Protective
1920s - Byron H. Somers leads Medical Protective and the company becomes the largest insurer of healthcare providers in 17 states.
1930s - Medical Protective introduces a much broader coverage policy and helps shape the defense of medical practitioners; provides the first "medmal bible" to the industry, named "Brief on Malpractice Law."
1940s - Medical Protective defends well over 50,000 claims and provides physicians and dentists with continued coverage during their WWII military service.
1950s - Always with a vision towards the future of healthcare, Medical Protective begins insuring residents and interns during their training.
1960s - Medical Protective begins to expand coverage and increase limits and continues its national leadership position.
1970s - Medical Protective is one of the few carriers to survive the increasing number of medical malpractice suits that results in the industry's "first crisis."
1980s - While many carriers exit the market during the industry's "second crisis," Medical Protective continues to offer occurrence coverage and to award claim-free credits for policyholders without losses.
1990s - Focusing on the continuum of care, Medical Protective begins to insure small and community-based hospitals.
1998 - General Electric
General Electric
General Electric Company , or GE, is an American multinational conglomerate corporation incorporated in Schenectady, New York and headquartered in Fairfield, Connecticut, United States...
purchases Medical Protective and expands coverage countrywide.
2001 - Recognizing technology advancements, Medical Protective offers online risk management CME courses, and STATUS online coverage application.
2002 - While St. Paul Travelers
St. Paul Travelers
The Travelers Companies is the largest American insurance company by market value. It is also the second largest writer of U.S. commercial property casualty and the third largest writer of U.S. personal insurance through independent agents. Travelers has headquarters in St. Paul, Minnesota and...
and others exit the market during the industry's "third crisis," Medical Protective adds policyholders and expands to meet the needs of healthcare providers.
2005 - Medical Protective is purchased from GE
Gê
Gê are the people who spoke Ge languages of the northern South American Caribbean coast and Brazil. In Brazil the Gê were found in Rio de Janeiro, Minas Gerais, Bahia, Piaui, Mato Grosso, Goias, Tocantins, Maranhão, and as far south as Paraguay....
by Warren Buffett
Warren Buffett
Warren Edward Buffett is an American business magnate, investor, and philanthropist. He is widely regarded as one of the most successful investors in the world. Often introduced as "legendary investor, Warren Buffett", he is the primary shareholder, chairman and CEO of Berkshire Hathaway. He is...
's Berkshire Hathaway
Berkshire Hathaway
Berkshire Hathaway Inc. is an American multinational conglomerate holding company headquartered in Omaha, Nebraska, United States, that oversees and manages a number of subsidiary companies. The company averaged an annual growth in book value of 20.3% to its shareholders for the last 44 years,...
. Insureds have the long-term confidence that comes from being with Fortune Magazine's "World's Most Admired Insurer."
2006 - Rating agencies S&P and A.M. Best
A.M. Best
A.M. Best Company, Inc., headquartered in Oldwick, New Jersey, is a rating agency designated as a Nationally Recognized Statistical Rating Organization by the United States Securities and Exchange Commission....
assign the highest financial strength ratings to Medical Protective, "AAA" and "A++" respectively.
2007 - Medical Protective insures stand-alone surgery centers, cancer treatment centers, dialysis centers and imaging centers, and forges partnerships with specialty organizations and associations to offer solutions to their members.