Frequently Asked Questions

• How much does malpractice insurance cost for pediatricians?

  Premiums for pediatricians vary significantly by state and practice setting, ranging from under $10,000 per year in lower-cost states to $40,000-$50,000 in high-liability areas like Miami or Chicago. Most pediatricians carry standard $1M/$3M policy limits. While pediatrics is considered a lower-risk specialty compared to surgery or obstetrics, premiums reflect factors including your location, claims history, and whether you practice general pediatrics or a subspecialty. Working with Cunningham Group’s brokers who shop coverage across every major carrier helps pediatricians find competitive rates while ensuring adequate protection.

• Why are pediatric malpractice payouts so high despite lower claim frequency?

  While pediatricians face fewer claims than many other specialties – ranking 10th of 28 specialties in claim frequency – the average indemnity payment when claims do occur is among the highest. Cases involving neonates average approximately $940,000 (mean indemnity: $936,843 per The Doctors Company study), compared to $390,000 for teenagers, reflecting the lifetime care costs and earning potential associated with injuries to very young patients. The average defense cost for pediatric cases is also significant, with pediatrics ranking 4th highest among specialties at $28,779 for cases with no indemnity and $67,502 for cases with indemnity found. This paradox makes adequate coverage essential.

• Who typically pays for pediatrician malpractice insurance?

  Payment arrangements vary by practice setting. Hospital-employed pediatricians often have employer-provided coverage, though it’s crucial to understand what that coverage includes and identify any gaps requiring personal supplemental insurance. Pediatricians in private practice typically purchase their own individual or group policies. Regardless of who pays, every pediatrician should maintain documentation of their coverage and understand policy details, as malpractice insurance is essential for protecting your career and assets. Working with an experienced broker can help clarify your coverage needs.

• Can pediatricians reduce their malpractice insurance costs?

  Pediatricians can reduce their malpractice insurance costs by utilizing new-to-practice and part-time discounts, maintaining a clean claims history, and completing risk management courses for premium credits.

• What makes pediatrics unique in terms of malpractice liability?

  Pediatrics is unique in malpractice liability due to the complexity of weight-based dosing, the communication challenges of treating non-verbal children, and an extended statute of limitations that allows minors to file claims years after an incident, often resulting in high indemnity payments for lifetime damages.

• What are standard coverage limits for pediatricians?

  Most pediatric policies carry $1M/$3M limits, meaning maximum coverage of $1 million per claim and $3 million total per policy period. However, pediatricians in highly litigious areas may need higher limits given the potential for significant awards in pediatric cases, particularly those involving neonates or permanent injury. Consider your specific practice situation, location, and hospital credentialing requirements when determining appropriate limits. Your Cunningham Group broker can help assess whether standard limits are adequate or if higher coverage is warranted for your circumstances.

• What coverage options are available for pediatricians?

  Pediatricians can choose between claims-made and occurrence coverage. Claims-made policies cover incidents that occur and are reported during the policy period – they’re typically less expensive initially but require tail coverage when leaving a position or changing carriers. Occurrence policies cover any incident during the policy period regardless of when the claim is filed, costing more upfront but eliminating tail coverage needs. Given pediatrics’ extended statute of limitations, understanding these differences is particularly important. The right choice depends on your career plans, practice stability, and financial situation.

• Do pediatric subspecialists need different coverage?

  Pediatric subspecialists require specialized coverage because their liability profiles vary significantly, with high-acuity fields like neonatology and pediatric intensive care facing substantially higher-severity claims and payouts than general pediatric practice.

• What are the most common causes of pediatric malpractice claims?

  The most common causes of pediatric malpractice claims are diagnostic errors, particularly missed cases of meningitis, appendicitis, and fractures, followed by communication breakdowns and weight-based medication errors.

• How common are malpractice claims against pediatricians?

  Approximately 28% of pediatricians (27.8%) have faced a malpractice claim during their careers according to AAP Periodic Survey data spanning 1987-2015. This percentage has declined from a peak of 33% in 1990 to 21.4% in the most recent 2015 survey – this figure excludes claims from residency. About 1 in 5 pediatricians will be sued during their career, and importantly, 1 in 10 is sued for care provided during residency. Pediatricians account for approximately 3% of all closed malpractice claims, ranking 10th of 28 specialties in claim frequency. While this places pediatrics among lower-risk specialties, the financial stakes when claims occur make continuous, adequate coverage essential throughout your career.

• How can pediatricians reduce their malpractice risk?

  Pediatricians can reduce their malpractice risk by maintaining thorough documentation of both positive and negative findings, implementing strict weight-based medication verification, and ensuring clear communication with parents regarding warning signs and follow-up care.

• What outcomes occur in pediatric malpractice cases?

  According to AAP data, among pediatricians who faced claims, 36% of cases were settled out of court while 33% were dropped by the plaintiff. Cases that result in payment to claimants average approximately $630,000 in indemnity with $157,000 in defense expenses. The mean indemnity payment has been steadily increasing over time. However, even cases resulting in no payment still incur significant defense costs averaging nearly $29,000. This underscores why having robust coverage is essential – the financial burden of defense alone can be substantial even when no malpractice is found.

• How does practice setting affect pediatrician coverage?

  A pediatrician’s practice setting dictates whether they need to rely on employer-provided coverage, secure private group policies, or obtain specific endorsements to ensure they are protected across multiple locations like hospitals, clinics, and urgent care centers.

• How does the application process work for pediatricians?

  The process begins by submitting information through a secure form or calling to speak with an agent about your specific practice needs. Cunningham Group assigns experienced brokers who understand pediatric practice to work with major insurance carriers in your state. They evaluate your subspecialty focus, practice settings, employment arrangement, and claims history to find appropriate coverage options. The broker helps identify applicable discounts and ensures you’re getting comprehensive protection at competitive rates. The goal is matching your unique situation with the right policy from carriers who understand pediatric medicine.

• Why is broker expertise important for pediatricians?

  Pediatric practice involves unique liability considerations that general insurance agents may not fully understand. Experienced brokers recognize the nuances of pediatric subspecialties, the importance of extended statute of limitations coverage, and the specific risk profile of different practice settings. With relationships across major carriers nationwide, specialized brokers can find coverage tailored to pediatrics’ unique risks – from neonatal care to adolescent medicine – at competitive prices. Cunningham Group’s 97% client retention rate reflects our commitment to understanding and serving pediatricians’ specific insurance needs.

• What should early-career pediatricians know about malpractice insurance?

  Nearly two-thirds of pediatricians report receiving no malpractice education during residency, yet understanding coverage is crucial from day one. Key considerations include: ensuring continuous coverage with no gaps between positions, understanding claims-made vs. occurrence policies before accepting job offers, knowing that you may be sued for care provided during residency, and maximizing new-to-practice discounts available to recent graduates. Keep records of all coverage certificates throughout your career. Understanding these fundamentals early protects both your career and financial future.

• What can pediatricians do about rising malpractice costs?

  Beyond individual risk management, pediatricians can support broader reform efforts. The American Academy of Pediatrics actively advocates for liability reform and encourages members to engage with this issue. Pediatricians can support specialty organization efforts like the AAP, communicate with politicians to advance meaningful reforms, and stay informed about liability system changes in their states. The AAP’s medical liability reform position statement outlines specific reforms and methods for physician involvement. Collective advocacy combined with individual risk management creates the most comprehensive approach to addressing malpractice concerns.

• What discounts are available for pediatricians?

  Pediatricians can lower their insurance costs through new-to-practice and part-time discounts, premium credits for completing risk management courses, and experience-based savings for maintaining a clean claims history.