What is the average cost for malpractice insurance?


Malpractice insurance is generally obtained by hospitals, medical practitioners, and physicians to cover the costs when being charged for malpractice. These kinds of professions are most likely the ones to face lawsuits against unprofessional conduct and negligence of duty. In the field of medicine, no one is really 100% sure about results and outcome.

Because every patient and treatment is never the same, there are still risks involved every time these medical professionals perform their operations.

For instance, the doctor is very accurate and confident that he has given the best diagnosis to a patient but after a few days, the patient did not respond to the medication due to internal break downs. Although the treatment was based from careful study and was tested even beforehand, the patient may still file complaints against the doctor. This is the very reason why hospitals and doctors make it a point to have medical malpractice insurance in order to safeguard their financial interest and reputation.

Some factors that will affect the cost of malpractice insurance include:

  • Specialties and occupation. Nurses pay different premiums compared to dentists or doctors. The exposure of risk varies from specialty to specialty and from occupation to occupation within the medical profession.

    For instance, OB/GYNs have higher malpractice insurance premiums as compared to general practitioners since there is a high incident rate of lawsuits. The same goes for surgeons involved in high-risk operations. The general logic is this: the more complex the job of the medical professional, the more costly is the insurance and policies.

  • Location. Malpractice insurance premiums will vary from state to state because some states have more malpractice lawsuits. The states own malpractice laws will also play into the premiums.

    Minnesota is considered the state with the lowest malpractice insurance rates while California, Florida and Nevada are at the top of the list for high cost states. Some states may impose higher medical malpractice insurance coverage and policies.

  • Claims history. The insurance company will also review the medical practitioner's history not just of claim but also of lawsuits - both settled out of court or taken to court. This will give an indication of the medical practitioner's susceptibility to medical malpractice lawsuits.

Also, if the medical practitioner travels from time to time in other places to perform surgeries or operations and treat patients, the kind of medical malpractice insurance he has may influence its cost.

As a general guideline, doctors specializing in internal medicine may expect to pay $4,000 to $6,000 annually, general surgeons may be charged $10,000 - $15,000 annually and OB/GYNs may have a whopping $15,000 to $20,000 premium bill. Again, this depends on the factors stated above. For more specific and up-to-date costs, get in touch with credible and reliable insurance companies.

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