Medical Malpractice insurance can be one of the highest expenses for Doctors and Physicians.
While the average cost is between $3,800 and $12,000 per year, it varies widely and is influenced by a number of factors, each playing a pivotal role in shaping costs and coverage decisions.
The main three factors affecting cost are your specialization, the location of your practice and your claims history.
The fastest way to get an accurate cost of your medical malpractice insurance is to enter your details in the form for a quick quote. All you need are your contact details and NPI number.
Homewood Insurance Group has extensive experience with medical malpractice insurance for Doctors and Physicians. We work with a number of different carriers to source the most suitable insurance coverage available at the best price.
The average cost of malpractice insurance for Doctors or Physicians in primary care is between $5,000 and $12,000 per year, though these amounts can vary significantly. Primary care practitioners generally pay less than other specialties, reflecting the lower risk of malpractice claims in primary care.
Several factors affect the cost of malpractice insurance:
You can act to reduce the cost of your insurance. Here are three strategies to help with this:
Your medical specialty is a primary determinant of insurance costs. Some specialties inherently carry higher risks because of the nature of their procedures and the potential for complications. Surgeons, Obstetricians and Podiatrists, for instance, face higher premiums than their counterparts in primary care or dermatology.
For instance in California, a Doctor or Physician with a family or general practice who does not perform surgery will pay around $9,000/year. A doctor with an emergency medicine practice may pay ~$23,000/year. If they perform general surgery, premiums rise to around $30,000/year. California Doctors specializing in obstetrics and gynecology (major surgery) will pay around $43,000/year.
The geographical location of a medical practice is a pivotal factor shaping insurance costs. In the United States, medical malpractice insurance is subject to state-level regulations, leading to considerable variations in premiums across different states.
States with a history of high-value malpractice claims tend to have higher premium rates. The urban-rural divide introduces another layer of complexity. Doctors practicing in rural areas typically have lower premiums than their urban counterparts. The political climate, population density, poverty levels, and other regional dynamics further contribute to the intricate tapestry of insurance costs.
Family Doctors liability insurance cost, with limits of $1,000,000 per claim and $3,000,000 total, can be:
The claims history of a healthcare provider stands as a significant barometer for insurance premiums. Doctors with a track record of malpractice claims—especially those who were found liable or have had to settle claims—should expect to pay higher premiums. Conversely, a clean claims history becomes a catalyst for lower premium rates.
Many medical malpractice insurance carriers extend a claims-free discount, offering potential reductions. You may also participate in an insurance company’s risk management program. This not only enhances safety practices but also unlocks additional discounts, providing a symbiotic relationship between responsible practice and cost management.
If you’re a Physician with a history of claims, visit our Hard-to-Place Physicians page to find out more about alternative insurance arrangements.
When calculating insurance premiums for non-surgical physicians, carriers look beyond just your specialty. They assess every operational and clinical factor that could influence your exposure to claims—from the types of procedures you perform to your practice location, staffing, and prior loss history. The following table outlines the main factors that affect the cost of coverage, how they influence pricing, and common restrictions applied by underwriters when determining eligibility or surcharges.
| Factor | Description & Risks | Typical Impact / Restrictions |
|---|---|---|
| Procedure Mix & Invasiveness | Greater proportion of higher-risk or minor procedures (e.g., complex laceration repair, I&D, cyst excision) increases exposure to infection, nerve injury, and technique disputes. | +10–35% PL surcharge as volume rises; carriers may ask for CPT mix and outcomes logs. |
| Missed/Delayed Diagnosis Exposure | Primary care claims commonly involve failure to diagnose (cancer, cardiac, sepsis) or delayed referral. | Baseline driver of PL rates; heavy diagnostic workload can add +10–25% unless strong triage/Follow-Up protocols are shown. |
| Claims History & Loss Runs | Prior paid claims, reserves, or multiple incidents signal future risk to underwriters. | Single paid claim may add +15–40%; multiple/severe claims can force E&S markets or higher deductibles. |
| Location / Venue Risk | Litigious counties and states without damages caps see larger verdicts (“nuclear” awards). | +10–50% by venue; urban coastal metros price highest. |
| Practice Setting & Volume | High patient throughput, urgent care hours, or after-hours clinics raise error potential and GL foot traffic risk. | +10–30% (PL/GL); carriers may ask for annual encounters and site safety controls. |
| Staff & Extenders | Use of NPs/PAs, RNs, and medical assistants introduces vicarious liability and supervision questions. | Entity and shared/individual limits needed; +5–20% depending on headcount, supervision, and protocols. |
| Telemedicine (Multistate) | Cross-border care without licensure or compact coverage creates uncovered exposure; documentation gaps elevate diagnosis risk. | +10–25% if significant; refusals/exclusions possible for multistate telehealth without proof of licensure and HIPAA platform. |
| Controlled-Substance Programs | Chronic opioid/weight-loss prescribing increases allegation severity (overdose, addiction, CV events). | +10–30% and tighter underwriting; PDMP use and monitoring plans often required. |
| Undisclosed or Outside-Specialty Procedures | Performing procedures not listed on the application, or outside training/privileges, can void coverage. | Restriction: Claim denials or policy rescission for material misrepresentation; carriers may decline or exclude retroactively. |
| Experimental / Off-Label Services | New/experimental therapies or off-label device/drug use without endorsement lack actuarial predictability. | Often excluded unless specifically endorsed; otherwise +20–50% surcharge with documentation and consent requirements. |
| Documentation & Informed Consent | Poor charting, missing consents, or weak referral tracking undermines defense in diagnosis/procedure claims. | +5–15% if deficiencies noted; discounts available (5–10%) for audited protocols/EHR templates. |
| Policy Form, Limits & Deductible | Occurrence vs. claims-made, higher limits, and low deductibles change premium load. | Occurrence +5–15% vs. claims-made; higher limits add $500–$2,000+; tail purchase priced separately. |
| Board/Disciplinary Actions | Open investigations, consent orders, or past sanctions indicate elevated risk. | Surcharges or non-renewal; some carriers impose exclusions or require higher retentions. |
| Risk Management & CME | Carrier-approved training, peer review, and closed-loop follow-up reduce claim frequency/severity. | Potential 5–15% credits; required for practices with recent losses to maintain preferred rates. |
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 covers negligence or mistakes made by individual physicians during their practice. It differs from General Liability insurance, which covers the practice itself.
Provides coverage for your organization against claims arising from alleged sexual misconduct or molestation by an employee or other representative of your organization.
Protects your facility against damage or loss to buildings, equipment, and other property from risks such as fire, theft, or vandalism.
Usually mandated by law. It protects physician practices and employees in case of work-related injuries or illnesses.
Covers financial losses associated with data breaches, cyber attacks, and other cyber incidents. Many policies include vulnerability testing and remediation support.
Ralph specializes in sourcing the most suitable insurance for Physicians at the best price. You can call him or fill out the form and he will get your message directly.