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Malpractice Insurance Cost

Malpractice insurance 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 decided.

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 $50,000.

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 specialty.