What Is Medical Malpractice Insurance?

Professional liability insurance

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Why Nexus Insurance Services is better for students and physician assistants?

As a student or physician assistant, you have many choices when it comes to doing business with medical malpractice insurance brokers and providers. So why choose Nexus Insurance Services to help you?

Medical malpractice insurance, a type of professional liability insurance, is an important part of a medical professonal’s career, and it is purchased for protection in case of a lawsuit by a patient. Before a doctor, physician, nurse, student doctor or any person providing any type of health care or service starts their own practice or is employed by a hospital or clinic, they may be required to purchase malpractice insurance. Each state has their own laws regarding insurance, so be sure to check with the medical board in your state.


Hopefully, you will never experience a medical malpractice lawsuit in your career.  However, according to the American Medical Association, 1 in 3 physicians has been sued, and by age 55, 1 in 2 have had a claim filed against them.


A malpractice lawsuit can become costly and time consuming to defend, not to mention the emotional and physical toll. This is why it’s vital for professionals to consider investing in professional liability insurance. Without insurance, physicians may experience licensure issues and there’s the risk of financial bankruptcy, especially for anesthesiologists,  OBGYNs, and surgical specialties, who tend to experience the highest numbers of claims as well as the largest payouts.

How Medical Malpractice Insurance Costs Are Calculated

Medical malpractice insurance premiums are regulated and approved by the insurance commissioner in each state. The commissioners ensure that the rates are not unfair or excessive. To determine a rate for a particular individual, other factors come into play including the medical specialty, geographic location, and the type and amount of coverage needed. Premiums can also vary for groups, hospitals, and schools that provide education in the medical field.

Rates Have Increased, But Nexus Insurance Can Help

Recently there has been a great deal of talk about medical malpractice insurance premiums increasing, which has become an issue among lawmakers, politicians, and the medical community. Analysts have several theories as to why premiums have increased, including:


  • The malpractice insurance industry experiences repeating cycles, much like the financial industry does.
  • There are fewer insurance providers available, which has caused less competition on premiums.
  • Lack of income from the investment of insurance providers’ reserves.
  • An increase in the size of awards to people who have won malpractice lawsuits.

At Nexus Insurance Services, it is our goal to help you find the best coverage at the best rates for medical malpractice insurance. We take the hassle and headache out of shopping around trying to find the right coverage at the right price. We stay on top of the insurance industry and have relationships with many insurance providers, so we are able to offer options that suit your specific needs.