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Birthing Centers Insurance

birthing center insurance 

Birthing centers provide family-centered, low-intervention maternity care focused on healthy pregnancies and natural childbirth. Even with excellent screening and experienced midwives, the risks remain significant. Labor can change rapidly, newborns can require immediate stabilization, and birthing centers must be ready to recognize complications and transfer patients quickly for higher-level care.

Insurance for birthing centers must reflect these realities. Policies need to address obstetric and neonatal professional liability, emergency transfers, documentation and consent issues, water births, VBAC considerations, and the daily premises risks that come with family visitors, support partners, and 24/7 operations.

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The fastest way to find the most suitable insurance coverage for birthing centers is to fill out our quick quote form, so we can give you an idea of the type of insurance coverage that best suits you.

Homewood Insurance works with a number of different carriers to ensure you have the most suitable insurance coverage at the best price.

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Insurance for Birthing Centers can include:

  • Professional liability covers obstetric and neonatal care, labor management, and emergency transfers.
  • General liability protects against third-party injury, slip-and-fall incidents, and property damage on-site.
  • Applies to freestanding birthing centers, midwife-led facilities, and outpatient maternity clinics.
  • Covers physicians, certified nurse-midwives (CNMs), nurses, doulas, and support staff.
  • Limits available up to $1M per claim / $3M aggregate; tail and retroactive coverage available.

More information

Insurance for Birthing Centers can include:

Malpractice or liability insurance can provide essential protection against these risks:

Professional Liability (Malpractice)

    1. Covers obstetric and neonatal care, including prenatal care, labor support, delivery management, and immediate postpartum care.
    2. Protection for birth injuries such as delayed resuscitation, shoulder dystocia complications, fetal distress, or improper monitoring.
    3. Coverage for certified nurse-midwives (CNMs), physicians, nurses, doulas, birth assistants, and student midwives.
    4. Defense against claims involving delayed transfer to hospital care, inadequate informed consent, charting errors, or failure to recognize complications
    5. Legal defense costs included, even if no wrongdoing is found.
    6. Coverage available up to $1M per claim / $3M aggregate, with tail coverage and retroactive options

  1. General Liability Insurance

    1. Covers slip-and-fall injuries, patient accidents, and other third-party bodily injuries on-site
    2. Protection against property damage caused by staff, patients, or vendors
    3. Includes personal and advertising injury, such as reputational disputes or privacy concerns
    4. Applies to hospital-affiliated centers, outpatient infusion clinics, and freestanding oncology facilities

Standard limits: $1M per occurrence / $3M aggregate, with options for umbrella limits, tail coverage, and prior acts protection.

Homewood Insurance Group work with  different insurance carriers to find you the most suitable coverage at the best price.

Get a quick quote now.

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The Cost of Insurance for Birthing Centers:

Premiums for Professional Liability (PL) and General Liability (GL) coverage for freestanding birthing centers remain highly variable and are not frequently published in detail due to the niche nature of the risk. Rates are influenced by factors such as state regulations, annual birth volume (typically 50–300 births/year for most centers), claims history, accreditation (CABC/AABC), proximity to transfer hospitals, and specific protocols (e.g., strict low-risk only vs. allowing limited VBAC or water birth). Specialized carriers dominate this market, as traditional medical malpractice insurers often decline or heavily load these risks.

Publicly available data is limited—most quotes are proprietary and obtained directly from brokers or carriers. Recent industry trends show modest overall increases in medical malpractice rates (averaging 2–5% nationally in 2024–2025), driven by inflation, nuclear verdicts in obstetrics, and long-tail claims (birth injury suits can be filed years later). However, birthing centers often see more stable or targeted adjustments due to their lower intervention rates and strong outcomes when adhering to low-risk models.

Professional Liability (Malpractice) Insurance – Estimated Ranges

  • Low-risk, accredited birthing center: $20,000–$40,000 annually.
  • Centers offering water birth, VBAC (limited), or higher birth volume: $35,000 – $65,000+ annually
  • Centers with prior claims or emergency transfer issues:
    $60,000 – $100,000+ annually (Surplus Lines market)

General Liability Insurance – Estimated Ranges:

  • Most standalone birthing centers:$2,500 – $6,000 annually
  • Large facilities or multi-site operators: $6,000 – $12,000 annually

Recommendations for Clients Seeking Optimal Coverage

  • Emphasize strict low-risk adherence (no routine VBAC, induction, or high-risk acceptance) to stay in preferred markets and keep premiums in the lower tiers.
  • Require CABC accreditation, documented emergency drills, and <20–30 minute transfer times for best rating.
  • For centers interested in VBAC/water birth: Partner with carriers offering endorsements (limited availability) or consider alongside-hospital models to improve options.
  • Shop annually via specialist brokers—availability can shift, and some states have midwifery-specific risk retention groups or trusts that offer competitive terms.

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Why do Birthing Centers need Insurance?

Birthing centers need insurance to cover them for the unique set of challenges they face, including:

  1. Medical Liability: Like any medical facility, birthing centers are at risk for malpractice claims. The stakes are high due to the vulnerable nature of both newborns and mothers, making Professional Liability Insurance crucial.

  2. Licensing and Regulatory Compliance: Birthing centers must adhere to a multitude of local, state, and federal regulations, including licensing requirements that can be complex and costly to maintain.

  3. Limited Medical Intervention Capabilities: Unlike hospitals, many birthing centers are not equipped to perform surgical interventions, making quick patient transfers essential in emergencies. This introduces additional liability.

  4. Staffing Concerns: The qualifications and experience of the healthcare providers, which may include nurse-midwives, obstetricians, and other support staff, can vary and introduce different levels of risk.

  5. Public Perception and Reputational Risk: Because birthing centers are often considered non-traditional, they may face skepticism from the public or medical community, heightening the importance of maintaining a strong reputation.

  6. Facility Risks: The physical property, including specialized birthing suites, medical equipment, and other assets, needs protection against damage or loss.

  7. Patient Data and Privacy: Compliance with data protection regulations like HIPAA is essential, necessitating strong cyber liability coverage

While many carriers will not insure birthing centers, Homewood Insurance Group works with carriers who offer specialized coverage tailored to the unique needs of birthing centers. Click here for a quick quote.

MedPro Group
Core Specialty
CNA Logo
Travelers Insurance
CFC Underwriting
Applied Underwriters
Tokyo Marine Insurance Group
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AIG Insurance
Ironshore
Strategic Comp
MagMutual
Genstar
Beazley
Empro Insurance
Great American Insurance
Skyward Specialty Insurance
Hudson Insurance Group
Huntersure Insurance
MIG Insurance
Kinsale Insurance

High-Risk Procedures and their Impact on your Premiums

While chemotherapy and standard radiation are widely covered, carriers closely review other services that carry elevated risk:

Procedure / Scenario Description & Risks Insurance Impact
VBAC / TOLAC Deliveries Risk of uterine rupture requiring immediate surgical intervention; major neonatal injury potential. Often excluded or declined; if covered, major surcharges and strict protocols required.
Breech or Twin Deliveries Higher risk of cord prolapse, entrapment, and fetal distress in out-of-hospital settings. Generally uninsurable; carriers decline or require immediate hospital referral.
Water Birth (Active Labor & Delivery) Concerns around cord avulsion, neonatal aspiration, infection, and emergency response delays. Mixed carrier appetite; some surcharge, others exclude pushing phase.
Induction / Augmentation of Labor Use of Pitocin, misoprostol, or castor oil protocols; elevated complication rates. Often prohibited; violations can void PL coverage.
High-Risk Maternity Clients Gestational diabetes, hypertension, post-dates >42 weeks, prior complications. Underwriting surcharges or decline; requires strict risk-out criteria.
Emergency Transfers with Poor Outcomes Claims tied to delayed recognition of complications or inadequate stabilization before transfer. Significant rate increases; prior losses may force center into surplus lines markets.

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What types of Insurance do Birthing Centers need?

 
General Liability Insurance

General Liability Insurance

General Liability covers medical expenses and attorney fees which result from bodily injuries and property damage that your facility or organization could be legally responsible for.
 
 
Professional Liability Insurance

Professional Liability Insurance

Also known as malpractice insurance, this  protects facilities against claims related to malpractice, negligence, or injury resulting from resident care. Staff members will typically be covered by professional liability insurance.
 
 
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Sexual Abuse and Molestation Insurance

Provides coverage for your birthing center against claims arising from alleged sexual misconduct or molestation by an employee or other representative of your organization. Essential for the senior living industry.
 
 
Commercial Property Insurance

Commercial Property Insurance

This protects your facility against damage or loss to your buildings, equipment, and other property, which can happen as the result of various risks such as fire, theft, or vandalism.
 
 
workers compensation insurance

Workers Compensation Insurance

Workers Compensation Insurance is usually mandated by law. It protects birthing centers and employees in case of work-related injuries or illnesses.
 
 
Cyber Liability Insurance

Cyber Liability Insurance

Covers you against financial losses associated with data breaches, cyber attacks, and other cyber incidents. Insurers will usually conduct rigorous testing of your online system to fix vulnerabilities as part of this policy.
 

Why Work With Homewood

Homewood understands how specialized and restricted the birthing center insurance market is. Many carriers decline these facilities outright, but with the right preparation and positioning, we can secure strong coverage.

We help you:

  • Match with carriers that actively insure birthing centers, midwives, and out-of-hospital maternity care.
  • Strengthen submissions by reviewing risk-out criteria, transfer policies, informed consent forms, fetal monitoring procedures, and staff credentialing.
  • Explain your model of care to underwriters so your facility is evaluated fairly—not lumped in with high-risk obstetric practices.
  • Negotiate favorable limits, retro dates, and tail coverage, even for higher-volume centers or those offering water birth.
  • Find solutions when others can’t, including surplus lines options for centers with claims or complex service offerings.

Call 947-274-3093 or
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Ralph Schiller

Ralph Schiller

Ralph specializes in sourcing the most suitable insurance for Birthing Centers at the best price. You can call him or fill out the form and he will get your message directly.