Medical malpractice insurance

Medical malpractice insurance is a professional liability policy that covers healthcare providers such as doctors, nurses, and surgeons against claims of negligence resulting in patient injury or death. Typical policies pay for legal defense costs and court-awarded damages up to set limits, with U.S.

Average annual premiums for internal medicine physicians ranging from $4,000 to $12,000 according to the American Medical Association. Surgeons face higher risk and thus see premiums between $30,000 and $50,000 per year.

Most states require practicing physicians to carry medical malpractice insurance by law–New York and Florida mandate minimum coverage levels, as reported by YourInsurance.info. Claims-made policies cover incidents reported while the policy is active, while occurrence policies protect claims from services provided during the covered period even if reported later.

Insurers like The Doctors Company and MedPro Group are leading providers cited by AM Best ratings. Coverage exclusions usually include criminal acts or sexual misconduct allegations, as detailed in standard policy terms.

Deductibles for medical malpractice insurance typically start at $1,000 but can reach $25,000 or more for high-risk specialties such as obstetrics or neurosurgery. Tail coverage extends protection after a claims-made policy ends–often needed when physicians retire or switch employers.

Factors affecting premiums include specialty (e.g. OB-GYNs versus pediatricians), state litigation trends (with California reporting lower claim rates due to MICRA law), and individual claims history.

Policy limits are often set at $1 million per claim/$3 million aggregate annually but can be adjusted based on hospital credentialing requirements or personal risk tolerance.