Two Factors That Influence Your Medical Malpractice Insurance Premiums

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Two Factors That Influence Your Medical Malpractice Insurance Premiums

Two Factors That Influence Your Medical Malpractice Insurance Premiums

31 July 2023
Insurance, Blog

Medical malpractice insurance is a necessary part of being a licensed doctor. When you are searching for the best combination of price and coverage, you'll likely notice costs can vary significantly. There are two factors that can be a major influence on your premiums. 


Malpractice more likely occurs in some specialties than others. For example, a medical error is more likely to occur if you are a surgeon versus a family physician. Surgeons are typically the most costly to insure and there will be variations based on your surgical field, with neurosurgeons typically paying more than plastic surgeons. Part of the reason for the difference is the severity of an outcome if a mistake is made. A bad spine surgery is typically more disastrous to the patient than a mistake during a tummy tuck.

Malpractice insurance for an OBGYN is typically more expensive for those who do both obstetrics and gynecology than those who only practice gynecology, because they are dealing with two lives, and problems with pregnancy and birth are common. Generally, fields like psychiatry and primary care are the least expensive. If you are in the process of becoming a doctor, you might want to take the cost of malpractice insurance into consideration before choosing a residency.


Both state and local geography can influence insurance premiums. Whether you practice in New York or North Dakota will significantly affect how much you spend on insurance premiums. Generally, smaller and less populated states will be less expensive. There are several reasons there is such a wide range of insurance premiums in different states. Some states have enacted tort reform laws that limit the amount patients can receive in both actual and putative damages in the case of medical malpractice. States with laws that are more limiting generally cost physicians less in premiums.

States with higher numbers of malpractice claims will result in higher premiums for doctors. The more populated a state, the more likely there will be a higher number of claims. One possible way to help reduce some of the higher costs of working in more expensive states is to choose locations with more physicians practicing in a particular area. When there is more competition for insurance companies, it is easier for physicians to get a better rate from insurance companies.

There are numerous factors that affect a physician's insurance premiums. Both the specialty and location of the practice can cause aspiring physicians to make different choices along the way. 

Contact a local insurance company to learn more about medical malpractice insurance quotes

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When you operate a business from your home, you enjoy the benefit of not having to commute to a busy office every single day. One thing that you may not have considered is whether your home business is covered under your current homeowners insurance policy. If you have expensive equipment, inventory and files stored in your home, you may need to add a rider to your insurance policy to ensure that you are covered. Find out more about how a home business can impact your homeowners insurance policy and whether or not you are protected as your policy stands today.