The cost of medical malpractice insurance varies widely depending on your specialty and where you practice. Annual premiums can range from under $10,000 to upwards of $200,000.
Sample Annual Medical Malpractice Insurance Premiums, 2024
| Obstetrics/Gynecology | |
| California (Los Angeles, Orange) | $49,804 |
| Connecticut | $151,591 |
| Florida (Miami-Dade) | $243,988 |
| Illinois (Cook, Madison, St. Clair) | $207,907 |
| New Jersey | $94,640 |
| New York (Nassau, Suffolk) | $171,672 |
| Pennsylvania (Philadelphia) | $122,906 |
| General surgery | |
| California (Los Angeles, Orange) | $41,775 |
| Connecticut | $104,452 |
| Florida (Miami-Dade) | $243,988 |
| Illinois (Cook, Madison, St. Clair) | $139,284 |
| New Jersey | $63,366 |
| New York (Nassau, Suffolk) | $151,378 |
| Pennsylvania (Philadelphia) | $94,361 |
| Internal medicine | |
| California (Los Angeles, Orange) | $8,274 |
| Connecticut | $21,770 |
| Florida (Miami-Dade) | $59,736 |
| Illinois (Cook, Madison, St. Clair) | $47,787 |
| New Jersey | $18,410 |
| New York (Nassau, Suffolk) | $33,270 |
| Pennsylvania (Philadelphia) | $24,647 |
| Sources: American Medical Association, Annual Rate Survey (October) of the Medical Liability Monitor, 2015-2024. Numbers are manual premiums reported by a liability insurer selected on the basis of data availability. CT premiums are for $1 million/$4 million limits; PA premiums include Patient Compensation Fund surcharges. | |
The cost of business insurance depends on a variety of factors, including:
- Your state.
- Whether you work full time or part time.
- The type of coverage you buy.
- The policy’s limits.
The best way to find out how much insurance will cost is to get quotes from several insurance companies.
Do doctors have to pay their own malpractice insurance?
Yes, if you operate independently or own your own practice. But if a hospital employs you, those institutions usually pay malpractice insurance premiums for their staff doctors.
Medical professionals who work for federal agencies, like the U.S. Department of Veterans Affairs, often don’t have to get malpractice insurance. The federal government is the insurer.
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What is malpractice insurance?
Malpractice insurance is a kind of professional liability insurance. It protects doctors, lawyers and other professionals from liability for events that injure or kill patients or clients.
Many states require physicians and other professionals to have malpractice insurance.
What does malpractice insurance cover?
Malpractice insurance typically covers:
- Attorney fees.
- Court costs.
- Arbitration fees.
- Settlements.
- Punitive and compensatory damages.
- Medical damages.
Malpractice insurance typically does not cover:
- Sexual misconduct.
- Criminal activity.
- Inappropriate alteration of records.
- Cyber liability.
How does malpractice insurance work?
That depends on what type of policy you have. There are generally three types of malpractice insurance.
Claims-made coverage
This kind of malpractice insurance covers you if both:
- The event occurred while the policy was active.
- The claim was made while the policy was active.
For example, say Dr. Jones had a claims-made malpractice insurance policy for the entire year in 2026. She made a mistake during a procedure in July 2026. If the patient filed a claim before Dec. 31 of that year, she would be covered. If the claim came later, she would not.
This is generally the cheapest type of malpractice insurance.
Occurrence coverage
Occurrence coverage covers you as long as you had your policy in place during the event in question, even if the claim is filed after your coverage lapses.
In Dr. Jones's example, say the mistake occurred in July 2026. She had an occurrence policy that expired on Dec. 31, 2026. Her patient filed a lawsuit two months later. An occurrence policy would cover her. A claims-made policy would not.
Since an occurrence policy provides more coverage, it typically costs more than a claims-made policy.
Tail coverage
Typically, tail insurance is an addition to a claims-made policy. It covers claims made after your policy lapses, as long as the event happened while you had coverage.
Say Dr. Jones had tail coverage in place after her claims-made policy expired at the end of 2026. Her patient filed a lawsuit in early 2027. In that case, she would be covered.
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