In Need of Medical Malpractice Insurance in Michigan?
If you are a physician needing medical malpractice coverage in Michigan, MEDPLI will work for you as your only trusted broker.
Use the information in this 2024 Buying Guide to get ready to discuss your medical malpractice insurance needs with a MEDPLI insurance broker. Get a quote.
Michigan Medical Professional Liability Insurance Market Summary
Physicians in Michigan have many options for obtaining medical malpractice insurance, but we recommend carriers rated “A” by A.M. Best because of their long-term financial solvency and a history of providing robust financial and legal support for Michigan physicians.
Some of the top-rated medical malpractice insurance companies serving Michigan physicians include:
Malpractice Insurance Rates for Michigan Doctors
This information includes general estimated premiums which can vary greatly based on many factors, such as practice location, medical/surgical specialty, and past claims history. Talk to a MEDPLI broker to get quotes tailored to your unique coverage needs.
| Specialty | Approximate Claims Made Rate |
|---|---|
| Anesthesiology | $21,000 |
| Cardiovascular Disease Minor Surgery | $32,000 |
| Emergency Medicine | $43,000 |
| Family Practice No Surgery | $19,000 |
| General Surgery | $67,000 |
| Internal Medicine No Surgery | $23,000 |
| Neurology No Surgery | $28,000 |
| Obstetrics and Gynecology Major Surgery | $90,000 |
| Occupational Medicine | $13,000 |
| Ophthalmology No Surgery | $13,000 |
| Orthopedic Surgery No Spine | $52,000 |
| Pathology No Surgery | $15,000 |
| Pediatrics No Surgery | $18,000 |
| Psychiatry | $13,000 |
| Radiology – Diagnostic | $28,000 |
*Using the MI standard limits of $1,000,000 Each Claim / $3,000,000 Aggregate per year in coverage
Each practice risk profile is different, and your rates could vary significantly. MEDPLI specializes in medical malpractice insurance and tail insurance coverage for Michigan physicians and surgeons. To get estimates based on your specific scenario, reach out for a personalized quote. Get a quote.
Types of Professional Liability Insurance for Michigan Physicians
Here is a brief overview of the most common types of medical malpractice insurance for physicians in Michigan:
1. Claims-Made Insurance
Claims-made malpractice insurance provides coverage if the policy is in effect when the incident took place AND when the claim is filed. If a claim is filed after the end of the policy date, the claim is NOT covered.
With a claims-made policy you need tail malpractice insurance, which is a separately purchased insurance policy or endorsement, to make sure you have full protection.
Learn more about claims-made insurance here.
2. Occurrence Insurance
Occurrence malpractice insurance provides coverage for incidents that occurred during the policy year, regardless of when a claim is reported to the carrier.
Occurrence policies are more costly at the start of the policy, but the rate stays the same for the length of the policy, and there is no need for tail coverage when the policy ends.
Read more about occurrence insurance.
3. Tail Insurance
Since most malpractice insurance policies are underwritten on a claims-made basis, you will be exposed to a lawsuit if a former patient files a claim against you and you do not secure tail coverage. When you are preparing to leave your employer, you should seek tail coverage options with an independent broker like MEDPLI.
Tail insurance covers you for a specific time period. The new employer’s policy is not going to cover you for prior acts of a former practice, hence tail coverage is needed.
Read more about tail malpractice insurance for physicians.
Reach out to an experienced MEDPLI insurance broker who will work for you to find a tail policy at a great price.
Telemedicine in Michigan
Physicians must be licensed in the state of Michigan in order to provide telehealth services, which are defined by the state as “the use of telecommunication technology to connect a patient with a health care professional in a different location.”
Several of the key mandates in the extensive telemedicine policy set by the Michigan Department of Health & Human Services include:
- “MDHHS requires a real time interactive system at both the originating and distant site, allowing instantaneous interaction between the patient and the health care professional via a telecommunication system.”
- “The technology must meet the needs of audio-visual compliance in accordance with current regulations and industry standards.”
- “Important: originating and distant site provider must ensure the privacy of the beneficiary as well as the security of any information shared via telemedicine.”
Doctors that take care of patients via telehealth are subject to the same liabilities as with in-person treatment. Reach out to a MEDPLI insurance broker to make sure your existing medical malpractice policy extends coverage to perform telehealth services in Michigan.
Tort Reform in Michigan
In subsequent years, Michigan has adjusted its cap on noneconomic damages periodically due to inflation. As of January 1, 2024, the “upper cap” was set at $$960,500 and the “lower cap” at $$476,600. For comparison, the 2020 “upper cap” was $842,500 and the “lower cap” was $$537,900.
Michigan’s Damage Caps on Medical Malpractice Lawsuits
There are no caps on economic damages in Michigan.
As of January 1, 2024, the state announced that the “upper cap” for non-economic damages was adjusted to a limitation of $960,500 and the “lower cap” was adjusted to a limitation of $537,900.
If the medical malpractice resulted in at least one of the following, the upper cap applies:
- The plaintiff is hemiplegic, paraplegic, or quadriplegic resulting in total permanent functional loss of one or more limbs caused by an injury to the brain and/or spinal cord;
- The plaintiff has permanently impaired cognitive capacity rendering him or her incapable of making independent, reasonable life decisions and permanently incapable of independently performing the activities of normal, daily living; or
- The plaintiff has suffered permanent loss of or damage to a reproductive organ resulting in the inability to procreate.
- If none of the above criteria are met, then the lower cap applies to the medical malpractice claim.
Statute of Limitations for Medical Malpractice Claims
The statute of limitations for medical malpractice in Michigan can be complex and can vary from case to case. Consulting with MEDPLI insurance brokers who understand the ins and outs of this system is an important part of protecting your medical practice with strong medical malpractice insurance coverage.
Medical Malpractice Insurance Outcomes in Michigan
The total malpractice payout in Michigan was $54,110,000 as of 9/30/2023 (Source: National Practitioner Data Bank).
Closing Remarks
Like many states, Michigan continues to face a physician shortage, especially in family medicine. According to data obtained by the Michigan Academy of Family Physicians in 2023, only 24% of new physicians establishing practices in Michigan are primary care specialists. Also, Michigan’s Robert Graham Center, which conducts policy studies on family medicine, reported that Michigan was 862 primary care physicians short of meeting the demand for patient care in 2023.
While demand for primary care physicians translates to a wealth of career opportunities, Michigan physicians in all specialties will need robust medical malpractice coverage in light of the state’s lack of caps on economic damages and annually increased non-economic damage caps. Also, Michigan ranked 6th among all U.S. states for volume of medical malpractice reports in 2023, according to the National Practitioner Data Bank.
