Professional Liability Insurance

The legal requirement for doctors to carry medical malpractice insurance varies across the United States. While no federal mandate requires physicians to carry it, state laws often do.

States Requiring Malpractice Insurance:

Several states mandate that physicians maintain active malpractice insurance policies:

• Colorado: Physicians must carry malpractice insurance with at least a $1 million per-occurrence limit and a $3 million aggregate limit.
• Connecticut, Kansas, Massachusetts, New Jersey, Rhode Island, Wisconsin: These states also require physicians to have malpractice insurance, though specific coverage limits may vary.

States with Conditional Requirements:

Some states do not universally require malpractice insurance but impose conditions under certain circumstances:

• Indiana, Louisiana, Nebraska, New Mexico, New York, Pennsylvania, Wyoming: In these states, physicians must carry a minimum level of coverage to participate in state programs that either limit the amount of damages from a malpractice claim or provide supplemental malpractice coverage.
• California: Physicians are required to carry malpractice insurance only if they perform outpatient surgery.
• Florida: Physicians can be exempt from carrying malpractice insurance if they meet specific stipulations, such as posting a bond, maintaining an escrow account, or obtaining an irrevocable letter of credit. They must also notify patients of their lack of insurance.

States Without Malpractice Insurance Requirements:

Approximately 32 states do not have laws mandating malpractice insurance for physicians. However, hospitals, employers, or insurance plans within these states may still require physicians to carry such insurance as a condition of employment or practice privileges.