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How much does medical malpractice insurance cost?
The cost of malpractice insurance depends on the type of work you do, how many employees you have, your claims history, and other business factors. Outside the field of healthcare, this policy is known as professional liability insurance.
What is the average cost of medical malpractice insurance?
The cost of medical malpractice insurance varies widely depending on your profession, your state, and other factors.
A non-medical home health aide might pay as little as $10 per month for malpractice insurance, while surgeons can expect to pay several thousand dollars every month for this coverage. Dietitians and nutritionists pay about $30 per month.
Malpractice insurance is crucial for every type of healthcare professional. It's often required by healthcare networks, state laws, and healthcare facilities. If you're sued for professional negligence, such as a misdiagnosis or other error, this policy helps pay for attorney's fees, court-ordered judgments, and other legal costs.
Typical malpractice insurance costs by specialty
Here are some average costs from the American Medical Association (AMA) for physicians in three specialties who bought $1 million/$3 million malpractice policies in 2022. Keep in mind that physicians are among those who pay the most for this type of coverage.
Medical malpractice insurance rates by state
| State (County) | Internal medicine | General surgery | Obstetrics/Gynecology |
|---|---|---|---|
California (Los Angeles, Orange) | $1,500 per month | $4,000 per month | $5,583 per month |
Connecticut | $1,334 per month | $5,417 per month | $8,254 per month |
Florida (Miami-Dade) | $4,279 per month | $17,115 per month | $18,852 per month |
Illinois (Cook, Madison, St. Clair) | $3,667 per month | $10,834 per month | $14,000 per month |
New Jersey | $1,167 per month | $3,917 per month | $7,083 per month |
New York (Nassau, Suffolk) | $2,417 per month | $9,167 per month | $14,167 per month |
Pennsylvania (Philadelphia) | $1,334 per month | $5,557 per month | $10,417 per month |
How much malpractice insurance do I need?
Ultimately, the minimum insurance requirements you have to meet will vary depending on where you're located. It's best to check with your local authorities for the most accurate information.
Some medical boards may require minimum levels of malpractice insurance. For instance, New Jersey requires a $1 million/$3 million policy for most physicians. This means your insurance provider will cover a maximum of $1,000,000 per individual claim, with a maximum of $3,000,000 for the entire policy period.
Some states will have lower malpractice insurance requirements, and others may have higher. Working with a knowledgeable insurance agent can help you ensure you get the right amount of coverage you need.
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How is malpractice insurance calculated?
Insurance companies will look at several different factors when calculating your premium, such as:
- Policy limits
- Business location
- Specialty
- Claims history
- Staff size
- Work schedule
If you need help deciding which policy limits or other coverage options are right for your business, consult a licensed agent.
Here is a closer look at the top factors insurance providers take into account when underwriting your insurance costs:
Policy limits and deductible
Medical malpractice policies cover medical liability claims up to your policy limits. A policy with lower limits costs less, but it might not provide sufficient protection in the event of a malpractice suit. These limits vary significantly, from $250,000 to $3 million.
You may see these limits of liability coverage on a malpractice policy:
- Per-occurrence limit. While the policy is active, the insurer will pay up to this amount to cover a single incident.
- Aggregate limit. During the lifetime of the policy, this is the maximum the insurer will pay to cover claims.
- Per-claim limit. This is the most the insurer will pay out for a single claim while the policy is active.
Typically, state laws or the terms of a contract will determine how much malpractice insurance coverage you'll need. In any case, make sure your limits can cover a potential lawsuit so you don't end up paying for legal costs out of pocket.
If your malpractice coverage is a claims-made policy, which only covers incidents that happen while the policy is active, you have the option to add on tail coverage. Tail coverage can last up to 10 years and protects you if a claim is filed after your policy has ended.
Business location
State regulations have a big impact on malpractice insurance premiums. Some states have tort reform laws that limit the damages awarded from malpractice lawsuits, which can help bring down costs.
Overall, you can expect lower premiums in the same states where you find lower rates for wages, living expenses, and healthcare.
The three states with the highest rates are:
- Florida: $1,247 to $3,976 per month
- Illinois: $1,193 to $3,473 per month
- Connecticut: $1,299 to $2,892 per month
Physicians are generally the only medical professionals who are required to carry malpractice insurance by law. However, state laws typically mandate workers' compensation insurance for businesses that have employees, and commercial auto insurance for business-owned vehicles.
Claims history
As with other types of business insurance, a claim on your policy will cause your premium to increase. A business that makes a claim is considered likely to do so again in the future, which makes you more risky to insure.
Fortunately, a strong risk management plan can help you avoid incidents that lead to medical malpractice claims. For example, nurses can reduce their chance of a claim by documenting every aspect of patient care, keeping doctors well informed, and following established procedures for medication administration and other tasks.
Staff size
Generally, larger businesses with more employees typically have higher malpractice insurance premiums. This is because a larger staff often means an increased potential for errors and claims.
Additionally, businesses with more staff members often have a more complex organizational structure, which can lead to communication challenges and possible oversights.
Work schedule and shift hours
Work schedules (including shift hours and practice hours) can impact the cost of medical malpractice insurance.
Practitioners who work fewer hours, or a part-time schedule, often qualify for discounted premiums compared to full-time physicians. This is because they have fewer patient interactions and have a lower likelihood of a malpractice claim.
Also, depending if you work in a solo practice versus being employed by a hospital or a large group practice, your rates may be different.
Specialty risks
For small businesses, your industry can have a tremendous impact on your premium. Insurance providers will look at businesses that are similar to yours to determine how much they should charge you.
Medical professionals with more risks, like doctors and surgeons, can expect to pay higher premiums for malpractice coverage. On the other hand, physical therapists and nurses can expect lower rates. It all depends on how much a liability claim might cost the insurer in court.
A patient is more likely to seek hundreds of thousands of dollars in damages from a surgical mistake than an error made by a physical therapist, which is why surgeons pay such a high rate.
Within your specialty, factors such as whether you offer telemedicine will also affect your rate.
Top healthcare professionals we insure
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Does my business need medical malpractice insurance?
When you work in healthcare, malpractice insurance is a must-have. You may see it referred to as professional liability insurance, errors and omissions insurance (E&O), or professional indemnity insurance depending on the industry.
Even the most experienced medical professionals can make a mistake when they're tired, or give advice that inadvertently harms a patient. If a patient or family member sues, the cost of a lawsuit could sink your business.
This policy can also cover accusations of sexual misconduct and expenses associated with Health Insurance Portability and Accountability Act (HIPAA) proceedings.
As an example, a patient could have an allergic reaction to a medication you prescribed, or a distraught family member could claim that you failed to meet the standard of care. Even if you've done nothing wrong, you still have to pay for attorney's fees and other legal defense costs.
A malpractice insurance policy helps pay for costly legal bills in a crisis, which could save your business from bankruptcy. Because the premium is based upon your level of risk, policyholders in some professions pay only a small monthly premium for their coverage.
How can you get affordable malpractice insurance?
Though malpractice insurance is expensive for some healthcare providers, it's always possible to reduce your premium. Beyond choosing lower limits and keeping your claims history clean, there are several additional steps you can take:
- Shop around. Insurance carriers often sell similar policies at different rates. To find a good price, compare medical malpractice insurance rates from trusted carriers with Insureon's easy online application.
- Pay the annual premium. You can choose to pay your premium once a month or once a year. Insurers offer a discount when you pay the full annual amount instead of monthly payments.
- Work with an agent. An agent can help you find coverage that fits your risks and your budget, without any extra add-ons you don't need. They can also navigate the insurance market to find cost-saving bundles for your business.
- Keep continuous coverage. Stopping and starting coverage is a red flag for insurers, and may end up costing more in the long run. Keep in mind that malpractice insurance is typically a claims-made policy. That means in order to collect on a claim, your policy must be active both at the time of the incident and when the claim is filed.
- Choose a higher deductible. Policies with higher deductibles have lower premiums, but make sure it’s an amount you can easily afford. The deductible must be paid in full before you can collect on a claim.
Why do small business owners choose Insureon?
Insureon is the #1 independent agency for online delivery of small business insurance. We partner with the nation's leading insurance carriers to help business owners find insurance coverage that matches their risks and their budget.
To get started, contact our dedicated medical malpractice insurance agent at (312) 854-2919 or [email protected]. You’ll typically be able to get coverage quickly and receive a copy of your insurance certificate on the same day.
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Updated: June 12, 2025