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Florida Malpractice Insurance

Florida malpractice insurance is legendary for being priced higher than other states' rates, especially in the medical field. Miami and Palm Beach historically had the highest rates of malpractice claims in the past two decades. This is partially what sparked the higher rates. However, there is another important reason - the legal system. Tort reform wasn't in place until recently, making it an even tougher market.

Since the tort reform in Florida, any medical malpractice claims have a maximum insurance amount of $500,000 for damages that are non-economic. This isn't set in stone, though. Depending on who is found at fault, the cap may be increased as high as $1.5 million. The maximum amounts allowed by hospitals are different than those for physicians.

Florida Malpractice Insurance - What You Should Know

The state of Florida is one of the few truly unique states for medical malpractice insurance. Physicians typically have $250,000/$750,000 policies. Although Florida's malpractice lawsuit rate is higher than the rest of the nation, these policy numbers are much lower than a typical policy's. Most physicians in other states carry an average of $1 million/$3 million coverage. The first number signifies the amount per incident allowed, while the second represents the aggregate amount.

In the aspect of direct written premiums, Florida malpractice insurance is the fifth largest market in the country. The total amount is well over $500,000,000 annually. The state has 22 different carriers, which comprise 80% of the total amount of the previous total in Florida premiums. However, between 2008 and 2009, premiums for Florida malpractice insurance decreased by 8%.

Florida Malpractice Insurance - Some Food For Thought

While malpractice insurance may be expensive for Floridians, it is one of the most profitable markets for insurance companies and underwriters. This is mostly due to the amount of claims filed, not the premiums paid by the medical professionals. The market is considered to be stable for malpractice insurance companies, but it is expected to decrease in Florida in the future. This is due to the increase of new companies surfacing, which creates competition and results in some companies suffering loss of business.

Florida malpractice insurance in other fields varies. Professionals such as accountants, lawyers and architects see about the same rates as the rest of the nation. Depending on the profession, policies may be occurrence-based or claim-based. This is definitely a form of insurance that no professional Floridian should go without. The cost of paying for a malpractice lawsuit may cost up to ten times the amount of one annual premium.

Last modified: May 7, 2011