Average Cost of Malpractice Insurance for Physicians

Cost of Malpractice Insurance for Physicians

Malpractice insurance is a form of professional liability insurance. It is designed for medical and healthcare professionals, such as physicians, doctors and surgeons.

The malpractice liability insurance policy defends healthcare professionals from lawsuits filed by patients against them.

This insurance policy specifically covers lawsuit expenses filed for professional negligence or intentionally harmful medical treatment.

This insurance policy also covers the death of a patient under the care of the policyholder.

Medical errors are a significant concern in the healthcare system. Hence, it is more likely that you will need medical malpractice insurance as a certified and practicing physician.

Average Cost of Malpractice Insurance for Physicians

What is the importance of Malpractice Insurance?

The majority of physicians will need to buy medical malpractice insurance. A 2016 survey done by Johns Hopkins University shows that medical errors are the third leading cause of death in the US.

What is the importance of Malpractice Insurance

What is the importance of Malpractice Insurance?

Medical negligence can occur during the diagnosis stage or treatment. It can even happen when advising patients about treatment, too. Estimates suggest that medical errors may contribute to around 250,000 deaths annually in the US, though exact figures are debated.

In 2023, around 20,000 malpractice lawsuits were filed against doctors in the US.

State laws and hospital policies often require malpractice insurance, but requirements vary by location and institution. If you wish to practice medicine as a healthcare professional in hospitals or clinics, you will need to get malpractice insurance coverage.

The premium for this insurance policy mainly depends on your location and specialty. Other factors include laws in the area, claims frequency, claims severity and the amount of coverage required.

These points highlight the importance of buying malpractice insurance for physicians.

Are there different types of Malpractice Insurance for Physicians?

There are several options to choose from when deciding to buy malpractice insurance for physicians.

A basic medical malpractice insurance policy can be bought from private insurance companies. You can also seek to contact the nearest Risk Retention Group (RRG).

These groups have made it easier to buy the best-suited malpractice insurance for doctors in the United States. Apart from this, you can also buy medical malpractice insurance coverage through your employers, such as hospitals and clinics.

Healthcare providers in government facilities are generally covered by the government, but may still choose to obtain additional personal malpractice insurance.

Medical professionals in government healthcare facilities are covered against malpractice claims by the federal government. However, if needed, you can buy insurance from local and state agencies.

There are mainly two different types of malpractice insurance for physicians:

Claims made policy – Claims-made insurance policy cover claims only if the policy was in effect during the disputed treatment and the lawsuit was filed.

Occurrence policy – The occurrence insurance policy covers claims made for treatment that happened while the policy was effective despite the expired policy.

Medical malpractice insurance policies offer to cover numerous types of costs. These include legal fees, such as lawyer’s fees, arbitration and settlement costs, punitive damages, and medical damages.

What is the Average Cost of Medical Malpractice Insurance for Physicians in the US?

There are several different factors involved in deciding the specific cost of medical malpractice insurance policies. Hence, it is not possible to pinpoint a specific cost of malpractice insurance for physicians.

Average costs of medical malpractice insurance vary significantly by specialty and location, and the figure of US$ 7,500 is a broad estimate.

Most surgeons in the US end up paying between US$ 4,000 to US$ 12,000 per year as insurance premiums.

On average, malpractice insurance covers costs around 3.2% of the average physician’s annual income.


Medical malpractice insurance coverage is a must for every certified physician, doctor, specialist and surgeon practicing in the United States.

This is an excellent way to prevent monetary loss and reputation loss. To find the best-suited medical malpractice insurance for physicians, we advise you to connect with the local RRG now.

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Current Version
February 2, 2022
Written By
Shubham Grover

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