Insurance for Medical Directors

Medical Directors are responsible for the clinical oversight, quality standards, and compliance of healthcare facilities. While they may not provide direct patient care, their leadership decisions affect patient safety, staff performance, and regulatory compliance — all areas that carry liability exposure.

Homewood Insurance helps Medical Directors protect themselves against lawsuits tied to their administrative and supervisory roles.

This page explains:

What Insurance Includes – coverage details for administrative oversight, protocol development, and compliance duties.
Cost of Coverage – typical premium ranges and factors that drive pricing.
Higher-Risk Exposures – specialties and procedures that raise premiums or trigger exclusions.
Why Work With Homewood – how we help Medical Directors secure tailored protection.

Get a Free Quote Now

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

Insurance for Medical Directors can include:

Protection for oversight of clinical operations, staff credentialing, and supervision.
Covers development and enforcement of policies, protocols, and compliance procedures.
Excludes hands-on patient care unless a separate malpractice policy is purchased.
Available for Medical Directors across urgent care, imaging, surgical centers, behavioral health, and specialty programs.
Limits up to $1M per claim / $3M aggregate; retroactive and tail coverage options available.

More Information

Insurance for Medical Directors can include:

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

Professional Liability (Malpractice Insurance)

Protection against claims of negligence in staff supervision, credentialing, or peer review.
Coverage for errors in protocol development, infection control, and quality improvement processes.
Defense for allegations tied to compliance failures with HIPAA, OSHA, or state/federal regulations.
Optional extensions for multiple facilities under one director’s oversight.
Note: Direct patient care is not covered under a Medical Director policy and requires a separate physician malpractice policy.

General Liability Insurance

While a Medical Director’s personal role is largely administrative, GL exposures can arise when they are named in lawsuits tied to facility incidents. Coverage may include:

Premises-related claims – injuries to visitors or patients on facility grounds (e.g., slips, trips, or falls).
Vicarious liability – being named in lawsuits because of staff actions at a facility under your oversight.
Property damage – claims related to damage of leased or third-party property during clinical operations.
Advertising injury – protection if marketing claims tied to your facility are alleged to be misleading or defamatory..

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How much does insurance for Medical Directors cost?

Professional Liability (Malpractice Insurance) – Estimated Ranges

Typical range for most Medical Directors: $2,500 – $4,000 per year for $1M / $3M limits.
Premiums rise significantly for Medical Directors at facilities with higher-risk procedures or large patient volumes.
If the Medical Director also provides patient care, a separate malpractice policy is required and rated at physician levels.

Key factors influencing cost include:

The type of facility overseen (urgent care vs. surgical center vs. behavioral health).
Facility size, patient volume, and services offered.
The director’s role in staff supervision, credentialing, and peer review.
Location, with higher premiums in litigation-heavy states (e.g., New York, Florida).
Claims history and prior settlements involving the director or the facility.

General Liability Insurance(GL) – Estimated Ranges:

GL is usually purchased at the facility level, but Medical Directors may be named in lawsuits tied to premises incidents or staff actions. Typical ranges:

Small outpatient facilities: $1,000 – $3,000 per year
Mid-sized centers: $3,000 – $7,500 per year
Large, multi-site facilities: $10,000+ per year

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High-Risk Exposures for Medical Directors and their Impact on your Premiums

Some specialties and procedures increase liability exposure for Medical Directors, especially if they oversee high-risk surgical or emergency operations.

Specialty / Procedure	Examples	Why It’s Higher Risk	Insurance Impact
OB/GYN	Cesarean sections, high-risk deliveries	High claim frequency for birth injuries; long-term payouts	Premiums may increase by $20K–$50K if clinical duties are included
Neurosurgery	Brain or spinal surgeries	Permanent neurological damage; claims often exceed $1M	Premiums may increase by $30K–$60K if director also practices clinically
General / Orthopedic Surgery	Joint replacements, spinal fusions	Infections, nerve damage, implant failures	Premiums may increase $15K–$40K if director involved in oversight of surgical staff
Emergency Medicine	Trauma cases, rapid diagnostics	Time-sensitive decisions; higher misdiagnosis exposure	Premiums increase $10K–$35K depending on scope
Pain Management / Anesthesiology	Epidurals, nerve blocks, opioid management	Overdose risks, paralysis claims, opioid liability	Premiums increase $10K–$30K if director directly oversees these services

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Other types of Insurance Medical Directors may need

General Liability Insurance

Helps protect against third-party bodily injury and property damage claims tied to facility operations.

Professional Liability Insurance

Separate malpractice coverage for any direct patient care duties outside the administrative role.

Sexual Abuse and Molestation Insurance

Protection for allegations of abuse or misconduct—often a contract requirement for facilities.

Commercial Property Insurance

Covers buildings, equipment, and contents against covered losses such as fire, theft, or vandalism.

Workers’ Compensation Insurance

Helps protect employees and the organization if work-related injuries or illnesses occur.

Cyber Liability Insurance

Covers costs from data breaches, ransomware, and privacy incidents across facilities and systems.

Why Work With Homewood

Senior Broker Ralph Schiller has worked with healthcare facilities of every size — from small clinics to large surgical centers — and understands the complex liability exposures Medical Directors face. With access to nearly 100 insurance carriers, Ralph and the Homewood team help Medical Directors:

Secure coverage tailored to their administrative oversight role.
Add endorsements for multiple facilities or corporate-owned entities.
Navigate gaps between Medical Director coverage and separate physician malpractice insurance.
Reduce costs by aligning applications with carrier underwriting expectations.
Gain an advocate who understands both regulatory compliance and real-world liability risks.

Call 947-274-3093 or Fill Out the Form

Ralph Schiller

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