Janardhan NEvery year, around 2.6 million people die due to unsafe medical care or negligence. That’s millions of lives impacted by errors that could have been avoided.
As per reports, about 1 in 3 healthcare professionals in the U.S. are sued for malpractice at some point in their career. And the numbers are only getting worse.
Surgeons and OB/GYNs are at the highest risk of being sued, and physicians are more likely to face malpractice reports than most other professionals.
Could you imagine what would happen if you were next facing a lawsuit? Would your practice survive the legal and financial costs?
It’s more than half of 2025, and we’ve already seen a 200% rise in medical malpractice insurance inquiries in just the last few months.
In this blog, we’ll explain how medical malpractice insurance works, the types of coverage it offers, and how much it could cost.
Don’t Let Medical Error Destroy Your Years of Reputation
Mitigata provides professional indemnity insurance, compliance support and unmatched risk coverage to keep your career safe.
Mitigata – Best Healthcare Malpractice Insurance Partner
You didn’t spend a decade training to worry about legal notices. Yet today, even excellent doctors face claims – not because they’re careless, but because medicine is complex and expectations are high.
At Mitigata, we don’t just offer healthcare malpractice insurance; we provide complete support every step of the way.
Here’s what you get when you partner with us:
Best Market Pricing from Top Insurers: We partner with leading insurers to deliver the best value for your coverage needs.
Comprehensive Help: Our services are end-to-end. We will get the quotes and help with the paperwork, so you can keep your focus on your practice.
Rapid Claims Process: If you have to make a claim, we will assist you through all stages of the process: from documentation and interaction with lawyers to negotiating settlements on your behalf.
Immediate Support: When you call us, you will speak with advisors who understand the difference between a Claims-Made and Occurrence policy, know what an AOY ratio means, and have helped countless other doctors.
What is Medical Malpractice Insurance?
Medical malpractice insurance, also referred to as professional indemnity (PI) insurance, provides you with financial security when things do not go as planned in clinical practice.
While you may have the best intentions and receive the best training for several years, things can go wrong, and patients may become frustrated, leading them to consider legal action.
This insurance protects you against the potentially disastrous financial implications of such claims.
Example: Dr Patel, an orthopaedic surgeon, faced a ₹40 lakh lawsuit after a routine operation caused difficulties.
The legal battle lasted 18 months. Between lawyer fees, expert witnesses, and the final settlement, the total cost hit ₹25 lakh.
His PI insurance covered everything. Without it, he would’ve lost his savings and possibly his practice.
Discover why engineers can’t afford to skip PI insurance– one small error could cost crores.
What Does a Professional Liability Policy Cover?
Though Professional indemnity insurance provides a broad coverage against the financial and legal fallout, the following are the typical things that come under PI insurance coverage
Compensation payments – If you’re found liable through a court judgment or agree to an out-of-court settlement, your policy covers the monetary compensation owed to the patient.
Complete legal defence coverage – Your policy covers lawyer fees, court filing charges, investigation expenses, expert witness fees, and representation costs at medical council inquiries or disciplinary hearings.
Team Mistakes – Covers mistakes made by your staff or assistants, such as nurses or technicians, if they’re listed in your policy.
Additional Protection – Includes coverage for lost documents, breach of confidentiality, or defamation claims.
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From understanding coverage to deciding premiums, our team ensures you make the smartest choice.
What are the common exclusions in professional liability policies?
While a PI policy provides extensive coverage, there are certain exclusions you need to be aware of. Here’s what is not covered by most policies:
Criminal Acts: No coverage is provided for any intentional act that causes harm or death to a patient. This includes assault, intentional malpractice, or intentional fraud. Insurance coverage would apply to negligent mistakes, but not to the above-mentioned criminal acts.
Fines & Penalties: Legal & Regulatory fines imposed by a medical council, state health department or regulatory body are not covered by the insurance policy. You are fully responsible.
Reputational or Financial Loss: If the claim is strictly about monetary loss or damage to reputation, and no bodily injury is alleged for the patient. Then, the coverage won’t be provided.
Intoxication: If the claim arises from services rendered while you were intoxicated, or under the influence of drugs (even prescribed), there is no coverage.
Cosmetic Procedures: Most policies will exclude elective cosmetic surgeries, except where the policy specifically states it is covered.
War/Nuclear incidents: Damages from acts of war and nuclear incidents are typically excluded, even if they are the cause of bodily damage.
Cost of Medical Malpractice Insurance
Let’s talk numbers. What does adequate protection actually cost? While your medical malpractice insurance quote depends on speciality, location, and claims history, here’s what most medical professionals can expect to invest in their financial protection:
| Coverage Limit (Aggregate) | Estimated Annual Premium |
|---|---|
| ₹25 Lakh to ₹50 Lakh | ₹7,000 to ₹15,000+ |
| ₹1 Crore | ₹10,000 to ₹20,000+ |
| ₹2 Crore to ₹5 Crore | ₹35,000 to ₹95,000+ |
Always remember the question isn’t whether you can afford PI insurance. It’s whether you can afford to practice without it.
Time is running out! Learn more about the coverage limits and costs of Professional Indemnity Insurance.
Elements Affecting Medical Malpractice Insurance Premiums
Your PI premium will vary depending on the following essential factors:
- Speciality – higher-risk specialisations (Neurosurgery, Cardiology, Orthopaedics, Obs-Gyn) are riskier than general medicine or paediatrics.
- Amount of coverage – higher limits (₹10 lakh to ₹ 5 crore) can carry higher premiums. However, the higher limits provide greater coverage
- Location – Metro cities cost more due to higher litigation rates
- Policy structure – AOA:AOY ratio affects how claims are counted
How to Choose the Right Medical Malpractice Insurance Company
Don’t just chase the lowest premium. Evaluate insurers on what truly matters:
Financial strength – Check ratings from ICRA, CARE, or AM Best (look for “A” or higher). Verify their claim settlement ratio and reserve funds.
Policy structure – Understand Claims-Made vs Occurrence policies. Insist on a “Pure Consent-to-Settle” clause so they can’t settle without your permission. Confirm defence costs are over and above your limits.
Defence philosophy – Choose specialists in medical professional liability who fight frivolous claims, not generalists who settle quickly to save money.
Proactive support – Look for risk management resources, CME courses, practice audits, and immediate access to claims specialists after difficult patient interactions.
True value – Compare multiple quotes, but prioritise comprehensive coverage over saving ₹5,000 annually. Factor in discounts and watch for hidden fees.
If you’re looking for a comparison guide, do check out this expertly curated list of top PI companies in India.
Conclusion
Whether it’s medical malpractice insurance for doctors, nurses or physicians, we understand that the problems faced by each profession are different.
Hence, we are partnered with India’s leading insurers to bring customisable policies for you with our team that actually understands what doctors face daily.
Ready to practice with complete peace of mind?
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areena g