Physicians and Doctors Malpractice Insurance Cost

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.

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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 have 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.

Malpractice Insurance for Physicians can include:

Coverage for diagnostic and outpatient procedures including minor lacerations, burns, and cyst removal.
Includes protection for telehealth and virtual care services.
Defense coverage for delayed or missed diagnosis claims.
Optional entity and DBA coverage.
Limits available up to $1 million per claim / $3 million aggregate.
Tail and part-time coverage options available.
Option to include general liability insurance.
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Malpractice Insurance Cost for Primary Care Physicians or Doctors

Insurance cost for primary care physicians or doctors is generally lower than other specializations

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 specialities, reflecting the lower risk of malpractice claims in primary care.

Several factors affect the cost of malpractice insurance:

Amount of coverage – While normally set at $1,000,000 per incident and $3,000,000 aggregate, primary care practitioners in states like Florida can take lower limits, reducing the cost of their insurance.
Your location – Costs vary widely from state to state.
The type of policy you choose – claims-made or occurrence

Strategies for reducing the cost of Malpractice Insurance

You can act to reduce the cost of your insurance. Here are three strategies to help with this:

Manage risks: Proactive risk management practices, including keeping thorough patient records, communicating with patients and staying up-to-date with continuing medical education. This can help reduce the likelihood of malpractice claims. Practicing risk-management can also make you a candidate for the lowest possible rates with any insurer. Click here for risk management strategies for doctors
Group Policies: Doctors and Physicians who join a group practice or professional organization can participate in group policies. Carriers will often provide discounts for larger groups.
Shopping Around: You can shop around yourself for better rates, or work with a broker like Homewood Insurance Group. We approach different insurance carriers to find the best rates and coverage options, saving you time and energy. We also help you review and potentially adjust coverage annually.

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Medical Malpractice Insurance for Other Specializations

A doctor examines a child. Rates for Medical malpractice insurance vary widely for different specializations

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, find themselves facing higher premiums than their counterparts in primary care or dermatology. The correlation between specialty and premium costs is a fundamental factor that significantly influences the pricing dynamics.

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 meanwhile will pay more, in the vicinity of $23,000/year. If they perform general surgery, Physicians or Doctors will pay more, at around $30,000/year. California Doctors specializing in obstetrics and gynecology major surgery will pay around $43,000/year.

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Medical malpractice costs for physicians vary from state to state

How your Location affects Insurance Costs

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:

$15,000/year in Charlotte and Fargo;
$17,000 in Charleston and Nashville;
$20,000 in Houston and Denver,
$30,000 in Chicago and
$345,000 in Manhattan, NY.

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How claims History affects your Insurance Cost

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.

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High-Risk Procedures and their Impact on your Premiums

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 (e.g., stimulants) 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 (e.g., $2M/$6M), 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.

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Other types of Insurance that Physicians 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

Professional Liability Insurance covers any negligence or mistakes made by individual physicians during their practice. It differs from General Liability insurance, 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

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 is usually mandated by law. It protects physician practices and employees in case of work-related injuries or illnesses.

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

We specialize in medical liability coverage for physicians, clinics, and healthcare organizations across the United States.
Access to 90+ national and specialty carriers ensures competitive pricing and flexible policy structures for every practice size and specialty.
We tailor coverage to your operations—including multi-site practices, telemedicine, and shared or individual provider limits.
Expert guidance from quote to renewal: our brokers help navigate exclusions, tail coverage, and compliance requirements so you stay fully protected.
Transparent process and proactive renewal strategy: we monitor carrier appetite, litigation trends, and pricing shifts to help you avoid last-minute surprises.

Call 947-274-3093 or Fill Out the Form

Ralph Schiller

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.

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