OB/GYN Malpractice Insurance

Here are some of the factors that determine insurance premiums for obstetrician-gynecologists during the underwriting process:

• Medical services offered. An OB/GYN who specializes in high-risk pregnancies can expect to pay more for insurance than one who provides standard care.
• Business property and equipment. It'll cost more to insure valuable medical equipment or a large commercial space.
• Number of employees. A larger workforce brings a higher risk of employee accidents and mistakes, which raises the cost of workers' compensation, general liability, and similar policies.
• Annual revenue. Increased business revenue is associated with higher risks and more frequent claims, which results in higher insurance costs.
• Business location. Crime rates, population density, severe weather, property values, and other regional factors affect how much you pay for business insurance.
• Coverage limits and deductibles. Policies with higher limits cost more but cover more expensive claims. Choosing a higher deductible can lower your premium, but your insurance won't activate until you pay the full amount.
• Claims history. An OB/GYN who has filed an insurance claim in the past will pay more for insurance than one with a clean history of claims.

OB/GYNs typically need malpractice insurance to sign contracts and protect themselves financially.

Here are the top reasons you need malpractice insurance, also called professional liability insurance:

• Compliance with state laws. Some states require malpractice insurance for physicians, including OB/GYNs. Others grant insured physicians access to a fund that helps protect them against damages in the event of a lawsuit.
• Healthcare networks and facilities require it. You will likely need malpractice insurance to work for any healthcare network or healthcare facility, such as a hospital or medical office.
• Your employer's policy may not be sufficient. Even when your employer or network provides malpractice coverage, you should still invest in your own policy. Employer policies are designed to protect their own interests, which can leave you with insufficient protection.
• OB/GYNs face higher-than-average risks. You're responsible for the well-being of both your patient and their infant during a vulnerable time. If something goes wrong, you could end up paying hundreds of thousands of dollars in legal costs, court-ordered judgments, or settlements.

Having your own malpractice insurance coverage gives you peace of mind and protection against claims of professional negligence or failing to meet the standard of care. An insurance agent who knows your industry can help you find the right coverage for your business needs at a price you can afford.

You should consider buying tail coverage if you leave a job, retire, or switch insurance carriers. Tail coverage provides protection for incidents that happened while your malpractice policy was active, but were reported after the policy period ended.

For example, if an OB/GYN recommends a course of treatment for a pregnant patient and then retires, they'd need tail coverage for any complications in childbirth that show up months later.

Since medical malpractice claims can arise months or even years later, tail coverage ensures OB/GYNs remain protected against lawsuits for patient care they performed in the past.

When choosing liability insurance, it’s important to understand whether your policy is claims-made or occurrence-based, as it affects when you’re covered—and for how long.

• Claims-made policies provide coverage only if the claim is made while the policy is active (or during an extended reporting period, if added). This means if a lawsuit is filed after your policy ends, you’re not covered, unless you purchase tail coverage.
• Occurrence coverage, on the other hand, provides protection for incidents that happen during the policy period, even if the claim is filed years later. These policies are typically more expensive upfront but offer long-term protection for past services.

For example, if an OB/GYN provides care during their policy period, but is later sued years after the policy has ended, an occurrence policy would still cover the claim. A claims-made policy would only provide coverage if it was still active in the year the claim was filed or extended with tail coverage.

General liability insurance is most often sold as an occurrence-based policy, while professional liability / malpractice insurance is typically a claims-made policy. Understanding the difference can help you avoid unexpected gaps in coverage—especially in fields like obstetrics, where claims may arise long after care is provided.

OB/GYNs often buy these coverages as part of a risk management strategy to protect their practice and career:

• Telehealth coverage adds protection to your malpractice insurance for liability claims arising from telemedicine or virtual patient services, such as misdiagnoses or patient complaints.
• License defense coverage pays for legal fees and other costs if you face an investigation or malpractice lawsuit that could affect your status as a board-certified OB/GYN. It's often available as an add-on to your professional liability policy.
• Needlestick or occupational accident insurance (OAI) protects against injuries from needles or sharps, as well as exposure to blood and other bodily fluids.
• HIPAA defense coverage covers legal proceedings, fines, and penalties related to HIPAA violations, and can typically be added to medical professional liability insurance.

These additional coverages help ensure you’re protected against less common, but potentially costly, risks in your practice

OB/GYNs can save money on professional liability / malpractice insurance by buying through Insureon. Our licensed experts can help you find a policy that matches your unique needs and your budget.

Other ways for OB/GYNs to save money on a malpractice policy include:

• Bundle policies. You can often save money when you purchase malpractice insurance alongside other types of coverage, such as general liability insurance, from the same provider.
• Customize your coverage options. Choose lower limits of liability or a higher deductible to reduce your premium, but make sure your coverage is sufficient to cover a claim and that you can afford to pay the deductible in a crisis.
• Implement risk management programs. Policyholders can prevent some claims through strict documentation, a focus on patient safety, and clear communication. A clean claims history keeps your premium low.

Our insurance agents can help you find the right insurance solutions for your business, whether your focus is on prenatal care, hysterectomies, cesarean sections, gynecological surgery, or any other specialty.