For physicians at every stage of their careers, few financial decisions feel as weighty as deciding whether coverage is truly necessary. Lawsuits can be rare for some specialties and regions yet devastating when they occur. That uncertainty leads many clinicians to ask a simple but important question: Is medical malpractice insurance worth it?

Understanding the real value of medical malpractice insurance starts with knowing what it protects, who needs it most and what risks arise when coverage is missing or inadequate. As part of a broader decision-making process, many physicians also compare policies to determine the strong best medical malpractice insurance options for their specialty, practice setting and career stage.

Is medical malpractice insurance worth it?

At its core, malpractice insurance is designed to protect physicians from the financial and professional consequences of patient claims alleging negligence, errors or omissions in care.

What does malpractice insurance cover?

So, what does malpractice insurance cover? Most policies provide coverage for legal defense costs, settlements and court judgments related to malpractice claims. This includes attorney fees, expert witness costs and administrative expenses, which alone can reach six figures—even if a case is ultimately dismissed.

Many policies also include coverage for licensing board defense, helping physicians respond to complaints filed with medical boards. This aspect is often overlooked but critical, as board actions can affect credentialing, hospital privileges and long-term career prospects.

When physicians don’t have enough malpractice insurance coverage

Even when physicians carry coverage, problems can arise if limits are too low. There are documented instances where physicians didn’t have enough malpractice insurance coverage to fully cover large verdicts or settlements. In these cases, personal assets, including savings, property and future earnings, may be exposed.

These situations highlight why malpractice insurance isn’t just about having a policy but having sufficient coverage for your specialty’s risk profile.

Who should have medical malpractice insurance?

While most physicians benefit from coverage, the need is not uniform across all roles and settings. The level of risk a physician faces depends heavily on how they practice, who employs them and how liability is structured within their organization.

Physicians in private practice almost always need their own medical malpractice insurance. For locum tenens physicians and independent contractors, some staffing agencies provide insurance, but policy limits, exclusions and tail coverage terms vary. Employed physicians are often covered through the employer or hospital system. Residents and fellows typically receive malpractice insurance through their training programs, but coverage usually ends when training concludes.

How does legal malpractice insurance work?

For those wondering how does legal malpractice insurance works, malpractice insurance functions as a contractual agreement between physician and insurer. In exchange for premiums, the insurer assumes responsibility for defending and paying covered claims, up to the policy’s limits.

Whether you’re in private practice, a locum tenens role or an employed physician, it’s essential to understand whether your coverage is claims-made or occurrence-based and whether tail coverage is included when employment ends.

Can doctors be fired before malpractice lawsuits are resolved?

A common concern is: can doctors be fired before malpractice lawsuits are resolved? In many cases, yes. Employment contracts often allow termination regardless of whether a claim is pending. If coverage is tied to employment and ends upon termination, physicians without personal policies may find themselves exposed during ongoing litigation.

This risk is one reason many employed physicians carry individual malpractice insurance as a supplemental safeguard.

What happens if you don’t have malpractice insurance?

Choosing to practice without coverage carries significant risks that extend beyond the courtroom. While some physicians assume lawsuits are unlikely or believe careful practice alone is sufficient protection, the reality is that even unfounded claims can be financially and professionally damaging.

As an example: a physician faces a claim alleging delayed diagnosis. Even if the claim lacks merit, defense costs alone can exceed $100,000. Without insurance, the physician must pay these expenses out of pocket while also managing compiled stress and time commitments.

If a settlement or judgment occurs, the financial impact can be life altering. Wage garnishment, liens and damaged credit are all possible outcomes. Additionally, malpractice claims—even unresolved ones—can complicate credentialing, privileging and future employment opportunities.

How much is malpractice insurance per month?

Cost is often the deciding factor when physicians evaluate whether malpractice insurance is worth it. On a monthly basis, malpractice insurance can range from a few hundred dollars to several thousand dollars, depending on your specialty and the state you practice in.

Best medical malpractice insurance

Finding the best medical malpractice insurance involves balancing affordability with adequate coverage. The lowest premium isn’t always the best value if coverage limits, exclusions or insurer stability fall short.

The good news is a clean claims history can lead to lower premiums over time, particularly with insurers that reward long-term risk management and favorable loss records. This means maintaining coverage early in your career may lead to more affordable rates later.

For most physicians, medical malpractice insurance is absolutely worth it. Not only are lawsuits inevitable, but the financial and professional consequences of even one claim can be severe. Adequate coverage offers peace of mind, asset protection and career stability.

If you’re evaluating coverage options or want to learn from trusted, physician-first perspectives, explore expert articles, podcasts and strategic partners available through PracticeLink’s Resource Center. It’s a valuable next step for making informed decisions that support both your career and your future.