Malpractice Insurance Cost
cost varies from one state to another, but it is never inexpensive. Even the least expensive policy will
cost between $5,000 and $10,000 per year. Most employers, especially hospitals, require this type of insurance, so
there is no way to avoid paying for it. Although rates vary, medical malpractice insurance is one of the most
expensive types of insurance in existence. Premiums depend upon areas of specialty. Some, such as obstetrics or
surgery, are more risky than most other areas.
As mentioned, variations also depend on the individual state of residence. Several factors are linked to these
variations, with two of the most important being statistics of risks and lawsuits. Insurance companies study how
many lawsuits are filed that relate to each field of practice in the state. They also weigh in the risks of the
type of specialty. Combining these factors along with their underwriter's rules, the annual rate is
Malpractice Insurance Cost Varies by Geographic Location
Although the averages vary, Minnesota consistently remains one of the lowest-cost states for malpractice insurance.
With the exception of areas in the field that are universally considered a high risk, the medical professionals in
the state generally have a much lower annual rate. Not all states have consistency like Minnesota does. For
example, California's rates vary greatly by location. Some may pay as low as $6,000, while others pay upward of
The scale of rates for malpractice insurance cost steepens greatly after the low-cost states. Nevada is
considered medium-high in cost. Some of the highest rates in this state exceeded $150,000 annually. Part of the
reason why Nevada ranks so high for malpractice is because of the high number of lawsuits compared to the low
overall state population.
Florida Malpractice Insurance Cost
One of the highest-cost states to purchase malpractice insurance in is Florida. This state has consistently ranked
the highest. It is full of a wide array of medical clinics, wellness homes and hospitals. It is also one of the
states with the highest ratio of lawsuits for the amount of people treated. Even a low-risk internal medicine
doctor can expect to pay over $50,000. Some high-risk-area professionals see rates that are over $200,000.
Malpractice insurance cost may be high, but it is definitely one type of coverage that is better to have
than not have. The cost of paying for a medical lawsuit without it could exceed even the most expensive annual
premium by well over $1 million, depending on the type of lawsuit, extent of damage and area of