Physicians and Doctors Malpractice Insurance Cost

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Westwood 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 Cost for Primary Care Physicians or Doctors

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:

1. Amount of coverage – While normally set at $1,000,000 per incident and $3,000,000 aggregate, primary care practitioner in states like Florida can take lower limits, reducing the cost of their insurance.
2. Your location – Costs vary widely from state to state.
3. 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:

1. 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
2. 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.
3. Shopping Around: You shop around yourself for better rates, or work with a broker like Westwood Insurance Group. We approach different insurance carriers to find the best rates and coverage options, saving you the time and energy. We also help you to review and potentially adjust coverage annually

Medical Malpractice Insurance for Other 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.

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.

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.

Other Factors affecting the Cost of Medical Malpractice Insurance.

The limits of coverage a Doctor or Physician chooses impacts the premium costs. Higher coverage limits invariably lead to increased premiums. Some practitioners may be limited in their choice as hospitals or state laws mandate specific liability limits.

Liability limits across the country are typically set at $1,000,000 per incident and $3,000,000 aggregate. In states like Florida however, Doctors and Physicians can choose lower limits of $250,000/$750,000.

Choosing occurrence coverage instead of claims made coverage can also increase the cost of medical malpractice coverage. Occurrence coverage protects you against incidents that occurred during the period of your policy, regardless of when the claim is filed.

Claims made policies on the other hand, only cover you if the claim is made during the coverage period. you are not protected for any claim made after your coverage expires,. Typically, occurrence coverage can be 20% higher than claims made coverage.