MagMutual business insurance

Overview

MagMutual is a physician-founded mutual that sells medical malpractice insurance: the professional liability cover that pays to defend and settle claims that a doctor, a practice or a hospital harmed a patient. It is not a general business insurer. Its customers are physicians, advanced practice providers, medical groups, hospitals and other healthcare organizations, and almost everything else it sells (cyber, regulatory, management liability, workers' comp) is built around them.

The NAIC's MAG Mutual group was ranked No. 95 among U.S. business insurers by 2025 commercial lines direct premiums written, with $677.2 million, based on NAIC market share data, or about 0.14% of the national commercial market. All of that NAIC premium is medical professional liability, which makes MagMutual the No. 4 medical professional liability writer in the country. It says it is the largest mutual medical professional liability carrier in the U.S. and insures more than 50,000 healthcare providers and organizations.

The group includes four companies:

• MAG Mutual Insurance Company, the lead company, based in Atlanta, Georgia.
• Professional Security Insurance Company, an Arizona-domiciled subsidiary.
• MDAdvantage Insurance Company of New Jersey, acquired in 2023.
• MagMutual RRG, a risk retention group.

MagMutual also owns OURCell PCC, a protected cell captive, plus an agency for personal lines and a wholesale unit, MagMutual Placement Services. The companies are owned by policyholders through MAG Mutual Holding Company. Neil Morrell is CEO, and William Kanich, MD, JD, is executive chair.

History

MagMutual was founded by physicians in Georgia and describes itself as a medical liability insurer for more than four decades. It grew from a Southeast regional carrier into a national one, largely through acquisitions and affiliations with other doctor-owned insurers:

• 2016: formed a joint venture with West Virginia Mutual Insurance Company to insure hospitals and their employed physicians. It also opened an office in Louisville, Kentucky, and bought Tift Area Captive Insurance Company, a Georgia physicians' captive. Tennessee approved that deal in November 2017.
• 2018: set up a Midwest region. In August AM Best upgraded the group's issuer credit rating to "a+" and affirmed its A (Excellent) financial strength rating.
• 2020: announced that West Virginia Mutual would become a MagMutual subsidiary and the hub of a Mid-Eastern region covering West Virginia, Ohio and Kentucky. The same year it began working with the Cooperative of American Physicians in California on coverage for large medical groups and facilities.
• 2023: completed the purchase of MDAdvantage Insurance Company of New Jersey on January 3, after New Jersey regulators approved it in December 2022. MDAdvantage still writes under its own name as MagMutual's Northeast hub.
• 2025: formed Capital Solutions, a team for large healthcare organizations with complex risk financing. It also launched MyAdvice (personalized risk guidance) and MyDefense (a coordinated malpractice defense model).

The market around MagMutual is consolidating. The Doctors Company completed its acquisition of ProAssurance on June 26, 2026, creating a much larger competitor. MagMutual remains an independent mutual.

Business insurance products

Medical professional liability for physicians and groups. The policy extends to the practice entity and to medical director duties, and it automatically covers newly added physicians. Other features:

• Built-in basic cyber and regulatory coverage.
• Automatic blanket locum tenens coverage and leave-of-absence benefits.
• A free retirement tail after one year with MagMutual and age 50 (see tail coverage and extended reporting periods).
• A consent-to-settle provision, which matters to doctors who don't want a claim settled over their objection (the hammer clause: what happens if you refuse a settlement).

Hospital professional liability combines facility and employed or contracted physician malpractice cover, with shared or separate limits. It can include general and employee benefits liability, plus an umbrella that can schedule professional, general, employee benefits, helipad, employers liability and non-owned aircraft exposures. Defense costs are paid in addition to limits, and the consent-to-settle clause for the first named insured has no hammer clause.

Business and regulation of medicine: management liability (D&O, EPL, fiduciary and crime), Cyber Plus and Regulatory Defender policies, and workers' compensation for healthcare employers. The comp policy carries an all-states endorsement and a dividend program that has paid up to 30% of annual premium; dividends are not guaranteed.

Alternative risk. Capital Solutions designs retention and transfer structures for large systems. OURCell PCC rents captive cells to healthcare organizations that want to keep part of their own risk (see what is a captive insurance company and how does it work?).

Most of these policies are written on a claims-made policy basis. medical malpractice insurance for physicians and practices and occurrence vs claims-made policies explain what that means when you change carriers.

Who it insures

MagMutual covers physicians of all specialties and other providers, from solo Medical practice insurance to large medical groups, along with hospitals and health systems. It is a strong fit in the Southeast, its home market, and it has built regional hubs in New Jersey and the Mid-East, but it says it serves providers nationwide. It does not insure non-healthcare businesses. For a dental office, a chiropractor or a home health agency, check eligibility with an agent first; its marketing centers on physicians and hospitals.

How to buy

Physicians can get a malpractice quote online. You enter NPI numbers, compare limits on screen and, if eligible, bind coverage and pay immediately. Cyber Plus and Regulatory Defender can also be quoted online. You can instead ask for an agent-assisted quote, or work through your own broker. Hospital, large group and captive business goes through agents and brokers, and MagMutual Placement Services gives agents wholesale access to its programs and to surplus lines markets. Policyholders manage their coverage through the MyMagMutual portal and the Service360 team, and get CME courses through the online learning center.

Before switching malpractice carriers, confirm how prior acts are handled: whether MagMutual will pick up your prior acts (nose coverage) or you need to buy tail from your current carrier.

Claims

If you receive notice of a claim or lawsuit, report it right away. You can use "Report a Claim" in MyMagMutual or email the claims team using the company's claim form. Preserve all records without altering them, and don't talk to the plaintiff's attorney. Risk consultants are available at 800-282-4882, 8 a.m. to 8 p.m. Eastern, Monday through Friday. There is a 24/7 physician-staffed hotline at 404-842-5454 for urgent issues. Workers' comp claims can be reported 24/7 online, by email, fax or phone.

MagMutual says 98% of its claims from the last five years were resolved without trial, and 83% of those closed without an indemnity payment. It also says 76% of cases that went to trial had favorable outcomes (2021–2025 closed files). Policyholders facing a suit can use its Peer2Peer program to talk to another physician who has been sued, and the Preserve Program supports communication with patients after an unexpected outcome.

Financial strength and ratings

MagMutual's website and 2025 annual report (as checked in October 2026) show an AM Best financial strength rating of A (Excellent). AM Best upgraded the group's long-term issuer credit rating to "a+" in August 2018, when it called the balance sheet the strongest category. In August 2022 it said the MDAdvantage deal did not change MAG Mutual's ratings. See AM Best rating.

From the company's 2025 combined statements (MAG Mutual Holding Company):

• Gross written premium of $795.1 million, up from $691.0 million in 2024.
• Net income before dividends and taxes of $61.9 million, down from $97.8 million.
• Capital and surplus of $1.24 billion and total admitted assets of $3.27 billion.
• A premium-to-surplus ratio of 0.64 to 1, which is conservative leverage for a malpractice carrier.

MagMutual has paid policyholder dividends every year since 2007, more than $495 million in total. It declared a 2.5% dividend in February 2026, lower than the 7% to 12% dividends it declared in 2019–2021.

Strengths and weaknesses

MagMutual is a well-capitalized, physician-owned specialist with a strong defense record and real online convenience. It is also a pure healthcare liability carrier, and its 2025 earnings fell as malpractice severity rose across the industry.

• Strengths: No. 4 in U.S. medical professional liability and the largest mutual in the line. Conservative leverage, with $1.24 billion of surplus at the end of 2025. Physician-friendly forms with consent to settle, a free retirement tail at 50 after one year, and locum tenens cover. Online quote-and-bind for physicians. Dividends every year since 2007. Captive and alternative risk options for large systems.
• Weaknesses: AM Best rating is A (Excellent) rather than A+. Healthcare only, so a practice's property, auto and similar coverage must be placed elsewhere. The 2026 dividend is 2.5%, down from earlier years, and net income fell in 2025. Its footprint is strongest in the Southeast and in states served by acquired companies.

How to contact MagMutual