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Telemedicine Malpractice Insurance for Doctors

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Telemedicine Malpractice Insurance for Doctors

The COVID 19 pandemic triggered a sharp increase in telemedicine health, expanding risks in the healthcare industry.  Every physician benefits from carrying medical malpractice insurance.  The medical profession is inherently risky, making it important to protect yourself and your finances from potential malpractice suits.

Does Medical Malpractice Insurance Cover Telemedicine?

Prior to the COVID-19 pandemic, not every malpractice insurance carrier embraced the practice of telemedicine. Some didn’t even offer the coverage. The realities of COVID forced change, and most carriers now cover telehealth patient interactions. There are several malpractice insurance companies, all with different policies and premiums. It can be beneficial to have an insurance broker or agent with insurance experience to help you sort through your options to determine which policy best fits your needs at the lowest premium. 

Top Rated Telemedicine Malpractice Insurance Companies We Work With:

  1. Medical Protective
  2. The Doctors Company
  3. NORCAL
  4. ProAssurance
  5. CNA
  6. Coverys
  7. PSIC
  8. ISMIE
  9. MAG Mutual

Additional Risks for Physicians in Telemedicine

Naturally, telehealth medicine presents unique risks to physicians that can expand potential medical malpractice claims. Some of these unique risks include:

  • Privacy concerns
    • Are there others around them that can hear their medical information?
    • Is the video interface HIPAA compliant?
  • Knowing when to ask patients to come in for an in -person visit for a proper diagnosis
  • Cyber liability increases with patients using a variety of devices in a variety of locations 

How Much Does Telemedicine Malpractice Cost for Physicians?

The cost of telemedicine malpractice for physicians depends on the state(s) you want to practice in, what type of “procedures” you’ll be doing with your patients and your practice history. There are of course many other data points that the insurance companies look at when coming up with your medical malpractice insurance quote, but these are the big 3.

The best way to ensure you are paying the lowest cost for your telemedicine coverage is to go with an agent that has access to dozens of malpractice insurance companies in your state. Your goal should be to get as many quotes as you can that will properly cover your telemedicine practice.

Does it Cost Extra to Use an Insurance Agent or Broker?

In the medical malpractice insurance industry, agent commissions are already built into your premium, so you pay the same amount for coverage whether you use an agent or purchase directly from the insurance company. 

Why Do Doctors Choose the Cunningham Group?

Our veteran medical malpractice insurance agents exclusively focus on helping doctors navigate the medical liability insurance market. With access to every major medical malpractice insurance company in every state, our team is uniquely qualified to get you the best coverage at the most affordable price. Most agents only have access to one or two medical malpractice insurance companies. Our almost-universal access lets us shop your coverage among nearly every available company, which means malpractice insurers compete for your business. While it’s possible that your current coverage may offer you the protection you need for your telemedicine practice, it’s also possible that your carrier would exclude coverage, in the absence of specific allowances. Even if you’re in the middle of a current policy, feel free to contact us. One of our veteran agents can review your unique situation and policy terms to ensure you have the proper coverage in place.

Whether you are looking for a malpractice policy that covers your full-time telemedicine practice or supplemental coverage for your existing policy, Cunningham Group offers access to the industry’s best rates and telemedicine malpractice insurance options. Request your free medical malpractice insurance quote and start saving.

How Does the Process Work??

  1. You will submit your information through a secure medical malpractice insurance quote form.. You can always call us and speak to an agent immediately.
  2. A veteran medical malpractice insurance broker will be assigned to you.
  3. We shop your telemedicine coverage to every major malpractice insurance company in your state.
  4. Your agent will take the time and go over all of your options with you, explaining everything to make certain you make the right decision.
  5. We get you your insurance policy at the best price with a major insurance company.
  6. At renewal time: We start the shopping process all over again, getting you quotes from all the major malpractice insurance companies to again make certain you’re properly priced.

Telemedicine & COVID FAQ

  • Am I covered for patient claims involving COVID-19, including unintentional transmission?
    • Yes, patient claims alleging professional negligence relating to COVID-19 should be covered, but as always, coverage is subject to your specific policy’s existing terms and conditions. For concerns about coverage involving transmission of the virus to your employees, please review your workers’ comp policy. For claims regarding transmission of the virus to the general public, review your general liability policy. We recommend you contact your malpractice insurance agent to make certain you are covered or whether there are any conditions to coverage.
  • Will my coverage remain in force if I temporarily convert my existing practice to telemedicine or virtual office visits for existing or new patients in response to this pandemic?
    • Yes, as long as all patients are located in the state(s) in which you are authorized or licensed to practice. However, if you are starting a new practice or new business with a new patient base, you must contact us to fill out a new medical malpractice application. The new application will have to go through the usual underwriting process.
  • Will my coverage remain in force if I’m temporarily practicing in a new state where I’m licensed to practice?
    • The only exception is if you will be practicing in a state that has a patient compensation fund in place: Connecticut, Indiana, Kansas, Louisiana, Nebraska, New Mexico, Pennsylvania, Virginia or Wisconsin. Please contact us if you plan on practicing in any of these states during the pandemic. We want to ensure you have coverage in place.
  • Will my coverage remain in force if I temporarily practice in a new state (either in-person or remote) in which I’m not authorized to practice?
    • No, unless your patients in that new state are limited to Medicare or Medicaid patients under a temporary CMS waiver.
  • Will my coverage remain in force if I’m asked to temporarily provide care outside my specialty or scope of practice in response to this pandemic?
    • This is determined on a case-by-case basis. Please contact us before moving forward.
  • What if I’m retired and want to help? Will this affect any free tail provision I have or put me in breach of my retirement contract?
    • Most companies have stated that they will not consider this a breach of contract. However, please contact us before moving forward as there are exceptions. We want to confirm on a case-by-case basis.
  • How is Cunningham Group able to address my current needs?
    • We have had a seamless emergency work from home procedure in place for many years to ensure we can handle a crisis like this. We are open and ready to respond to all of your inquiries and needs. Contact us now.
  • Will the companies allow me to postpone my malpractice payments during this crisis?
    • Some insurers are permitting this on a case by case basis. Please notify us to confirm prior to making any changes to your payments, so you don’t risk losing coverage.

Resources for Doctors practicing Telemedicine

The AMA Quick Guide to Telemedicine in Practice

The Ultimate Physician Medical Malpractice Insurance Guide

We’ve created the ultimate medical malpractice insurance guide for physicians that can answer almost any question you may have — either before you buy or while you have an active policy. This guide applies to all physician specialties in every state.

Frequently Asked Questions

The COVID-19 pandemic triggered a dramatic expansion of telemedicine, with 71.4% of physicians now using telehealth weekly compared to just 25.1% in 2018. This growth has expanded both the reach of virtual care and the malpractice risks physicians face. Whether you practice full-time telemedicine, offer hybrid in-person and virtual care, or moonlight through telehealth platforms, understanding your coverage is essential. These FAQs address the most common questions physicians have about telemedicine malpractice insurance.

  • Does my standard medical malpractice insurance cover telemedicine?

    While most medical malpractice carriers have expanded coverage to include telehealth since the pandemic, you should never assume your standard policy is sufficient and should instead obtain written confirmation from your provider regarding specific telemedicine riders, potential exclusions for multi-state practice, and virtual-care limitations.

  • What are the unique malpractice risks of telemedicine practice?

    The primary malpractice risks in telemedicine include a significantly higher rate of misdiagnosis (66-70%) due to the lack of hands-on physical exams, alongside increased exposure to privacy breaches, cyber liability from data hacking, and technical failures that can lead to critical communication breakdowns.

  • How much does telemedicine malpractice insurance cost?

    Telemedicine malpractice insurance typically costs physicians between $5,000 and $25,000 annually, with specific premiums determined by your specialty, practice volume, and the number of states in which you are licensed to provide virtual care.

  • Do I need to be licensed in every state where my telehealth patients are located?

    Because a telehealth visit is legally considered to occur at the patient’s location, you must generally hold a valid medical license in every state where your patients are located, which is a process often streamlined by the Interstate Medical Licensure Compact (IMLC), or your malpractice insurance will likely be voided for those interactions.

  • What is the Interstate Medical Licensure Compact (IMLC) and how does it help telemedicine providers?

    The Interstate Medical Licensure Compact (IMLC) is a multi-state agreement that helps telemedicine providers by offering an expedited pathway to obtain individual medical licenses in over 40 participating jurisdictions through a single application, significantly reducing administrative hurdles and shortening the licensing timeline from months to weeks.

  • What states have patient compensation funds that affect my telemedicine coverage?

    If you practice telemedicine in any of the nine states with Patient Compensation Funds, like Connecticut, Indiana, Kansas, Louisiana, Nebraska, New Mexico, Pennsylvania, Virginia, and Wisconsin, you must proactively coordinate with your broker to pay specific state surcharges and ensure compliance, as your standard policy may not automatically cover claims in these jurisdictions.

  • Why is misdiagnosis more common in telemedicine than in-person care?

    Misdiagnosis is more prevalent in telemedicine, accounting for 66-70% of claims, primarily because the lack of hands-on physical examinations, such as palpation or auscultation, and potential technical failures like poor video quality prevent physicians from identifying subtle physical cues or life-threatening conditions like stroke or infection.

  • Do I need separate cyber liability insurance for my telemedicine practice?

    While some malpractice policies include limited cyber coverage as an endorsement, telemedicine providers increasingly require standalone cyber liability insurance to fully protect against the high costs of data breaches, ransomware, and regulatory fines, especially since up to 50% of healthcare data breaches are caused by internal staff negligence.

  • Will my coverage remain in force if I convert my practice to telemedicine?

    While your coverage generally remains in force when adding virtual visits for patients in states where you are licensed, you must submit a new malpractice application if you are launching an entirely new telemedicine business with a new patient base to ensure your policy is properly underwritten and no coverage gaps exist.

  • What HIPAA requirements apply to telemedicine platforms?

    To comply with HIPAA, telemedicine platforms must utilize encrypted video technology and formal Business Associate Agreements with third-party providers, while physicians are responsible for maintaining “reasonable and appropriate safeguards” such as ensuring patient privacy in their physical environment and documenting staff training on telehealth protocols.

  • Which insurance carriers offer telemedicine malpractice coverage?

    While most top-rated medical malpractice carriers including Medical Protective, NORCAL, and ProAssurance now provide virtual care coverage, The Doctors Company is notable as one of the few insurers that offers telemedicine protection across all 50 states for both hybrid practices and 100% virtual organizations.

  • How do telehealth malpractice claims differ from traditional malpractice claims?

    While telehealth malpractice claims must meet the same legal criteria as traditional suits, they differ in their heavy reliance on documentation of virtual-visit limitations and the high frequency of out-of-court settlements, as legal proceedings focus specifically on how technology gaps or the absence of a physical exam contributed to a breach of the standard of care.

  • What should I document to reduce telemedicine malpractice risk?

    To mitigate telemedicine malpractice risks, your documentation should meticulously record the technical quality of the encounter, the specific clinical limitations of the virtual assessment, and your clear reasoning for the diagnosis, including any explicit recommendations for in-person follow-up care or testing.

  • Does it cost extra to use an insurance broker for telemedicine coverage?

    Using a specialized insurance broker for telemedicine coverage costs you nothing extra because commissions are already built into the premium rates, providing you the advantage of having an expert shop multiple carriers to find the most comprehensive and competitive coverage for your specific practice model.

  • How do I get a telemedicine malpractice insurance quote from Cunningham Group?

    To obtain a telemedicine malpractice insurance quote from Cunningham Group, simply submit your specialty, licensure, and practice details via their secure online quote form or by calling 866-824-0137 to have a veteran broker shop your coverage across every major carrier in your state.