Most states require that physicians obtain medical malpractice insurance to offset the risk and costs of potential lawsuits. The risk is great enough that even in states that lack this requirement, physicians rarely practice without it. In addition to physicians, there are other professions that should carry medical malpractice coverage, including nurses, dentists, optometrists, therapists, and other medical professionals. Calculating Premiums
Premiums are based on the risk of the health care provider and the degree of certainty of this risk. Medical malpractice insurance is not experience-rated, therefore when a physician has a claim, premiums do not increase. Instead, premiums are determined by a physician’s specialty and geographic location; premiums are typically higher in urban settings than in rural areas, and high-risk practices like obstetrics, gynecology, neurosurgery, and orthopedics generally have higher premiums than other, lower-risk practices.
Medical malpractice insurance is predominantly regulated by states, and malpractice insurers serve only one state or a small number of states. To combat rising medical malpractice litigation insurance premiums, some states have capped damages that can be collected in medical malpractice suits, and others have mandated the purchase of at least $1 million of medical malpractice insurance. Other states have minimal requirements.
Contact us for more information about the regulations that apply to you regarding medical malpractice insurance and ensure that you do not face gaps in coverage.