How Much Is Malpractice Insurance? The Ultimate Guide for Medical Professionals

How much is malpractice insurance? Find out the factors that affect the cost, the average price, and the ways to save money on it.
How much is malpractice insurance? Find out the factors that affect the cost, the average price, and the ways to save money on it.

Malpractice insurance is a type of professional liability insurance that protects medical professionals from lawsuits arising from errors or negligence in their practice.

It covers the legal costs, settlements, and damages that may result from such claims.

But how much is malpractice insurance, and what factors affect its price?

In this article, we will answer these questions and more, so you can make an informed decision about your malpractice insurance needs.

What Is Malpractice Insurance?

Malpractice insurance, also known as medical professional liability insurance, is a specific kind of insurance that covers medical professionals from claims of malpractice.

Malpractice is defined as a failure to provide the standard of care that a reasonable and competent medical professional would provide in a similar situation.

It can result in physical, emotional, or financial harm to patients or clients.

The insurance typically covers:

  • Legal fees, such as attorney fees, court costs, and arbitration fees.
  • Settlements, which are negotiated agreements between the parties to resolve the claim without going to trial.
  • Damages, which are monetary awards ordered by a court or an arbitrator to compensate the injured party.

Why Do You Need Malpractice Insurance?

Malpractice insurance is essential for medical professionals, as it protects them from the financial and legal risks of malpractice claims.

Malpractice claims can have serious consequences, such as:

  • Loss of reputation, trust, and credibility.
  • Loss of income, assets, and savings.
  • Loss of license, certification, or accreditation.
  • Stress, anxiety, and depression.

The Malpractice insurance can help you avoid or mitigate these outcomes, by providing you with:

  • Defense, such as legal representation, advice, and support.
  • Coverage, such as payment of legal fees, settlements, and damages.
  • Peace of mind, such as confidence, security, and satisfaction.

How Much Is Malpractice Insurance?

An infographic on Factors Influencing Malpractice Insurance Costs

The average annual cost of malpractice insurance across all medical professions is $7,500.

However, the cost of varies depending on several factors, such as:

  • Your specialty, as some specialties are more prone to malpractice claims than others. For example, surgeons, obstetricians, and anesthesiologists tend to pay more than pediatricians, psychiatrists, and dermatologists.
  • Your location, as some states have higher malpractice rates and regulations than others. For example, New York, Florida, and California tend to have higher costs than Minnesota, Wisconsin, and Idaho.
  • Your coverage type, as there are different types of malpractice insurance policies, such as claims-made, occurrence, and tail coverage. Claims-made policies cover claims that are made while the policy is active, occurrence policies cover claims that occur while the policy is active, and tail coverage covers claims that are made after the policy expires.
  • Your coverage limit, as there are different levels of coverage that determine the maximum amount that the insurer will pay for a claim. For example, a common coverage limit is $1 million per claim and $3 million per year, but some professionals may opt for higher or lower limits.

To get an accurate estimate of how much the insurance costs for your specific situation, you need to get a quote from an insurance provider.

You can compare different quotes from different providers to find the best deal for your needs.

How to Save Money on Malpractice Insurance?

How to Save Money on Malpractice Insurance

The insurance can be a significant expense for medical professionals, but there are some ways to save money on it, such as:

  • Shopping around, as different providers may offer different rates, discounts, and benefits. You can use online tools, such as Tivly, to compare quotes from multiple providers and find the best option for you.
  • Joining a group, as some providers may offer lower rates for members of certain associations, organizations, or networks. You can also join a risk retention group, which is a group of professionals who pool their resources to self-insure against malpractice claims.
  • Reducing your risk, as some providers may offer lower rates for professionals who take steps to prevent or minimize malpractice claims. For example, you can attend continuing education courses, follow best practices and protocols, document your services and communications, and obtain informed consent from your patients or clients.



The insurance is a vital protection for medical professionals, as it covers them from the financial and legal consequences of malpractice claims.

The cost  depends on various factors, such as your specialty, location, coverage type, and coverage limit.

You can also save money by shopping around, joining a group, and reducing your risk.