How Much Does Malpractice Insurance Cost?
Malpractice is defined as an act of damage or injury to a person as a result of negligently performing a professional duty. Malpractice insurance caters specifically to provide medical professionals with protection from lawsuits resulting from such acts. Price for malpractice insurance depends on the coverage of the insurance itself, the experience and credibility of the company, as well as the type of insurance.
How much is it?
- The cost of medical malpractice insurance mostly depends on the location and the profession being covered by the insurance. Malpractice insurance can cost anywhere from $5,000 to $200,000 annually. The higher end insurance package is going to be more of a premium package, while the lower end will only cover a certain amount or have a higher deductible.
- Doctors in the internal medicine field in the state of Florida will be able to get malpractice insurance for anywhere between $50,000 to $70,000 annually. The same type of doctor in Minnesota pays only from $4,000 to $15,000 annually. Minnesota is one of the cheapest states to get insurance.
- General surgeons pay one of the highest malpractice insurance costs. The annual rate coverage is anywhere within the range of $90,000 to $175,000. For example, general surgeons in Minnesota will pay close to $10,000 to $25,000 per year.
- An OB/GYN has some of the highest rates in the profession ranging from $95,000 to $215,000 a year. An anesthesiologist will average from $3,000 to $68,000 a year. A radiologist will pay $25,000 to $43,000 a year.
What are the extra costs?
- Each and every policy will differ. Depending on the policy, there will be a minimum set deductible, as well as additional features that can be added to the policy. An insurance agent will be able to discuss these options with you before you sign with them. Additional add-ons may incur an extra expense.
- When applying for an insurance policy, the company will take a look at the state’s history of lawsuits as well as claims that have been filed. The insurance companies are going to use statistics to determine what the premiums are going to more than likely be for the practice. Each specialty is going to greatly effect the price as well. An OB/GYN will have a premium that is greatly more than a family doctor.
- Malpractice insurance tends to increase at a high rate every year. According to CBSNews.com, some doctor’s see annual increases that can double. Even if the doctor never had a lawsuit or claim against him/her, the annual policy can continue to increase over time.
What is going to be included?
- You’ll be able to get coverage for all the expenses that will be incurred in the event that you are sued for malpractice. Talk with an insurance agent to discuss your options.
- Each state is going to have it’s own laws in terms of malpractice insurance. There are different factors among the states that are out there that can affect the premiums.
How can I save money?
- Consider the most basic coverage and try to build your credibility to be able to perform your job without the inconvenience of being sued for malpractice.