Malpractice Insurance for Dermatologists

Dermatologists practice at the intersection of medicine and aesthetics, diagnosing complex skin conditions while performing cosmetic and surgical procedures that carry both medical and reputational risk. Even in a specialty considered relatively low-risk, procedural errors, misdiagnoses, or patient dissatisfaction with cosmetic outcomes can lead to costly litigation.

Homewood Insurance helps dermatologists secure comprehensive malpractice and general liability coverage designed for both clinical and cosmetic practices. From MOHS surgery to Botox and laser procedures, our coverage ensures protection against medical errors, procedural complications, and patient claims.

Below is a breakdown of the following:

What Insurance Includes – coverage features and options for dermatologists.
Cost of Coverage – average annual premiums and pricing factors.
Higher-Risk Procedures – cosmetic and surgical procedures that may raise premiums.
Why Work With Homewood – how we secure comprehensive coverage for dermatology practices.

Get a Free Quote Now

The fastest way to find the most suitable insurance coverage for dermatologists 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.

Dermatologist Malpractice Insurance can include:

Option to include general liability insurance.
Protection for dermatologic and cosmetic procedures including laser, Botox, and peels.
Includes coverage for MOHS surgery and skin cancer removal.
Protection for telemedicine and telehealth services.
Legal defense coverage for professional license issues.
Legal defense expenses covered in addition to liability limits.
Covers aesthetic treatment complications like burns or allergic reactions.
Optional coverage for hormone therapy and medspa services.
Limits up to $1 million per claim / $3 million aggregate.

Insurance for Dermatologists can include:

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

Professional Liability (Malpractice Insurance)

Protection for dermatologic and cosmetic procedures, including laser treatments, Botox, fillers, and peels.
Covers skin cancer diagnosis and treatment, including MOHS surgery.
Defense for misdiagnosis, delayed diagnosis, and improper procedural technique.
Legal protection for informed consent disputes and documentation errors.
Optional extensions for hormone therapy, medspa services, and teledermatology.
Includes license defense, peer review hearings, and regulatory complaints.
Policy limits up to $1M per claim / $3M aggregate, with tail and retroactive coverage available.

General Liability Insurance

Covers third-party bodily injury and property damage unrelated to patient treatment (e.g., slips, trips, falls).
Includes advertising injury (e.g., reputation or defamation claims).
Optional bundling with property, business interruption, and cyber coverage for clinics.

Recommended Add-Ons

Cyber Liability Insurance – protection against patient data breaches or ransomware attacks.
Regulatory Defense – for CMS, HIPAA, or medical board investigations.
Employment Practices Liability (EPLI) – for staff claims such as harassment or wrongful termination.
Medspa Endorsement – if aesthetic treatments form part of the practice.
Umbrella/Excess Liability – additional protection up to $10M for large practices.

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The Cost of Malpractice Insurance for Dermatologists

Premiums vary by procedure mix, geography, limits, and claims history. Typical ranges for $1M/$3M limits are:

Professional Liability (Malpractice Insurance) – Estimated Ranges

Low-risk states (AL, ID, AR): $15,000–$19,000
Moderate states (CA, TX, IL): $20,000–$25,000
High-litigation states (NY, DC, FL): $30,000–$35,000
Average national range: $16,000–$28,000

Factors Affecting Cost

Procedural mix: More than 10–15% cosmetic work can raise premiums by up to 30%.
Claims history: Prior cosmetic-related suits (burns, scarring, dissatisfaction) drive higher rates.
Geographic location: Premiums higher in states with no tort reform (NY, FL, CA).
Policy type: Claims-made is cheaper short-term; occurrence costs 20–25% more but includes permanent protection.
Accreditation & risk management: Carriers may discount 5–10% for practices with board-certified staff, documented consent, and training.

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High-Risk Procedures and their Impact on your Premiums

Dermatology remains a low-risk specialty overall, but procedures with cosmetic, surgical, or device-based components tend to attract higher premiums. While outright refusals are rare, carriers may exclude or surcharge specific procedures based on claims trends or lack of documentation:

Procedure Category	Description & Risks	Insurance Impact
Cosmetic / Aesthetic	Includes Botox, fillers, chemical peels, microneedling, and dermabrasion. Claims typically stem from burns, asymmetry, or allergic reactions. High patient expectations make dissatisfaction claims more common than medical negligence.	+10–30% PL premium increase for practices where aesthetics exceed 10% of services. Carriers may require separate medspa endorsements or higher aggregate limits.
Laser and Energy-Based Treatments	Laser resurfacing, tattoo removal, and hair removal carry burn, scarring, and pigmentation risks. Improper settings or untrained staff can lead to permanent cosmetic injury.	+15–35% surcharge depending on volume; coverage standard if FDA-approved devices and training logs are documented. Exclusions may apply for off-label use or unapproved energy devices.
Surgical / Invasive	MOHS surgery, excisions, biopsies, and cryotherapy for precancerous or malignant lesions. Litigation commonly involves diagnostic errors (e.g., missed melanoma) or incomplete margin removal.	Baseline dermatology PL premium typically covers these, but misdiagnosis patterns can increase rates 10–20%. No exclusions if performed within credentialed scope.
Teledermatology & Virtual Consults	Remote patient evaluations or prescriptions may lead to misdiagnosis, documentation gaps, or cross-state licensure risks.	+10–15% premium adjustment; some carriers require multi-state licensure or telehealth endorsement for cross-border consultations.
Off-Label or Experimental Therapies	Includes unapproved fillers, off-label drug use, or novel device treatments. High unpredictability and lack of peer-reviewed data increase litigation potential.	Possible exclusion or refusal unless explicitly endorsed; carriers assess documentation and consent rigor before underwriting.

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Other types of Insurance that Dermatologists need

Homewood can often combine different different types of coverage into one policy.

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

Protects individual dermatologists against negligence claims arising from their practice. Differs from General Liability, which covers the practice itself.

Sexual Abuse and Molestation Insurance

Provides coverage for your organization against claims arising from alleged sexual misconduct or molestation by an employee or other representative of your organization.

Commercial Property Insurance

Protects your facility against damage or loss to buildings, equipment, and other property from risks such as fire, theft, or vandalism.

Workers’ Compensation Insurance

Usually mandated by law. Protects practices and employees in case of work-related injuries or illnesses.

Cyber Liability Insurance

Covers financial losses associated with data breaches, cyber attacks, and other cyber incidents.

Why Work With Homewood

Specialists in medical and aesthetic liability insurance, covering both clinical dermatology and medspa operations.
Access to 100+ national carriers, ensuring coverage even for cosmetic-heavy practices.
Expertise in comparing claims-made vs. occurrence structures and state-specific pricing.
Tailored advice for telehealth dermatology and multi-state licensure.
Proven ability to reduce costs by matching practices with risk-aligned carriers.

Call 947-274-3093 or Fill Out the Form

Ralph Schiller

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

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