Insurance for Telemedicine Providers

We help telemedicine practices secure the right coverage to safeguard their patients, staff, and business. This page outlines what your policy should include, how much it costs, and which practices can increase premiums or even trigger coverage denial.

What Insurance Includes – detailed breakdown of Professional Liability and General Liability protections for virtual care providers.
Cost of Coverage – typical annual premium ranges and the factors that drive pricing for telemedicine practices.
Higher-Risk Exposures – red-flag practices that elevate premiums or lead carriers to decline coverage.
Why Work With Homewood – how we help telemedicine providers secure strong coverage in a fast-changing market.

Get a Free Quote Now

The fastest way to find the most suitable insurance coverage for telemedicine providers 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 multiple carriers to ensure you have the most suitable coverage at the best price.

Insurance for Telemedicine Providers can include:

Professional Liability for errors in remote diagnosis, treatment delays, or prescribing mistakes.
General Liability for business operations like rented office space, conferences, or outreach events.
Protection for physicians, NPs, behavioral health clinicians, and specialty telehealth providers.
Addresses multi-state licensure, informed consent, and EMR documentation.
Standard limits commonly $1M / $3M, with tail and retro options available.
Optional coverage for remote monitoring, mobile diagnostic kits, and D2C services.

More information

Insurance for Telemedicine Providers can include:

Professional Liability Insurance

Covers claims of misdiagnosis, failure to refer in-person, or inadequate patient assessment.
Defense for e-prescribing errors, including controlled substances and specialty medications.
Protection for documentation errors, consent disputes, or failure to follow telehealth protocols.
Applies to primary care, psychiatry, urgent care, dermatology, endocrinology, and more.
Includes video, audio, and asynchronous encounters on HIPAA-compliant platforms.
Optional endorsements for telepsychiatry, remote monitoring, and wellness programs.

General Liability Insurance

Third-party bodily injury or property damage at leased offices or hosted training sessions.
Advertising injury claims such as defamation, misrepresentation, or copyright issues.
Meets requirements for landlords, vendors, and payer contracts.
Tailored for practices that combine virtual services with occasional in-person interactions.

Cyber Liability Insurance

Costs of data breaches, ransomware, and HIPAA violations.
Forensics, recovery, business interruption, patient notification, and credit monitoring.
Fines/penalties and regulatory investigations (where insurable).
Essential for cloud-based, mobile, or multi-state telehealth operations.
Typical standalone limits start around $1M; premiums often range $750–$7,000+ by size.

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How much does Insurance for Telemedicine Providers cost?

Telemedicine is often rated similarly to the provider’s specialty (e.g., telepsychiatry, teledermatology, tele-urgent care). Because encounters are typically non-invasive and lower acuity, many carriers discount vs. in-person practice.

Professional Liability Insurance — Estimated Cost Ranges

Solo providers / startups: $2,000–$6,000 annually.
Multi-specialty or multi-state groups: $8,000–$15,000+.
High-risk lines (teleradiology, telepsychiatry, opioid prescribing): $20,000–$30,000+ in litigious states (e.g., CA, NY, PA).

Actual pricing varies by specialty, state, claims history, scope, and encounter volume.

General Liability Insurance — Estimated Cost Ranges

Small office presence / occasional events: $500–$2,000 annually (typical).
Multi-office or higher-traffic operations: $2,000–$5,000+.

Cyber Liability Insurance — Estimated Cost Ranges

Small telehealth practice: $750–$2,500 (for ~$1M limits).
Mid-sized (multi-state): $3,000–$7,000.
Large telehealth group: $10,000+, depending on records and revenue.

Key drivers: number of patient records, security posture (HIPAA, encryption, MFA), claims history, third-party/cloud reliance, and state regulatory mix.

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High-Risk Exposures and Impact on Your Premiums

Telemedicine is generally lower risk than in-person practice, but certain activities raise red flags for carriers. Some may result in surcharges of 20–50% or more; others can cause outright coverage refusal if non-compliant.

Procedure / Practice	Why It’s High Risk	Potential Premium Impact
Cross-State or Cross-Border Care Without Licensure	Violates state licensing laws; standards-of-care disputes.	Often leads to outright denial of coverage.
Prescribing Schedule II Controlled Substances	Federal restrictions; addiction/diversion liability.	Usually excluded; refusal without special DEA endorsements.
Telesurgery or Remote Procedure Guidance	Technical failures and high complication risk.	Excluded from most policies; requires specialty coverage.
Non-HIPAA-Compliant Platforms	Elevated breach/privacy litigation risk.	Can void PL coverage; denial if violations persist.
Prescribing Schedule III–V Controlled Substances	Risk of over-prescribing / inadequate monitoring.	20–50% surcharge; strict documentation required.
Diagnostic Services in High-Risk Specialties	Higher misdiagnosis rates (e.g., telepsychiatry, teleradiology).	Premiums may double; especially in no-tort-reform states.
AI / mHealth Diagnostic Tools	Opaque decision-making; error attribution.	~30%+ increase; tech-specific riders often required.
Emergency or Urgent Care Consults	Limited ability to intervene during acute events.	Premium surcharges; carriers prefer non-acute only.
Inadequate Consent or Documentation	Failure to explain telehealth limitations drives suits.	15–25% premium bump; claims history can push higher.

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Other types of Insurance Telemedicine Providers may need

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

Commercial Auto

This is relevant for Telemedicine Providers who use a vehicle for practice-related tasks. This insurance covers you against auto accidents, theft, and other vehicle-related incidents.

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.

Business Owner’s Policy

A Business Owner’s Policy (BOP) is a comprehensive insurance package designed for Medical Professionals with small to medium-sized businesses. It provides a blend of liability protection and property insurance.

Professional Liability

Professional Liability Insurance overs any negligence or mistakes made by the individual Telemedicine Providers during their practice. It differs from General Liability insurance, which covers the practice itself.

Cyber Liability

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.

Workers’ Compensation

Workers Compensation Insurance is usually mandated by law. It protects Telemedicine Provider practices and employees in case of work-related injuries or illnesses.

Why Work With Homewood

Homewood Insurance understands the telemedicine landscape. We help providers:

Secure malpractice and liability insurance tailored to remote care.
Address complex exposures like multi-state licensing, cyber liability, and telepsychiatry.
Navigate a market where carriers constantly update their appetite for virtual care.
Compare A-rated carriers to ensure the best mix of coverage and price.

Call 947-274-3093 or Fill Out the Form

Ralph Schiller

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

Call 947-274-3093 or email submissions@homewood.insure.