Malpractice Insurance for Doctors & Physicians in Michigan

Medical malpractice requirements in Michigan.

Limits of Liability: The most common limits of liability in Michigan are $200,000 per claim with an annual aggregate cap of $600,000.

Most hospitals require a physician carry malpractice insurance prior to granting admitting privileges. Some of the hospital systems requiring this include, but are not limited to: Henry Ford Hospital in Detroit, Sparrow Hospital in Lansing and the University of Michigan Hospitals in Ann Arbor.

Michigan Medical Malpractice Requirements

Michigan Limits of Liability: The most common limits of liability in Michigan are $200,000 per claim with an annual aggregate cap of $600,000.

Like most states, healthcare professionals, doctors, and nurses are not required by law to carry medical malpractice insurance. However, most hospitals require a physician to carry malpractice insurance prior to granting admitting privileges. 

Some of the hospital systems requiring this include, but are not limited to: 

• Henry Ford Hospital in Detroit
• Sparrow Hospital in Lansing
• University of Michigan Hospitals in Ann Arbor

Factors that Affect Malpractice Insurance Premiums:

• Practice Location
• Amount of coverage needed: More coverage means a higher premium 
• Type of policy preferred: Every policy is different, and every medical practitioner has different needs 
• Medical specialty: Higher-risk specialties that require unique expertise will naturally have higher premiums
• Working hours: Longer working hours ( more strained individual) will have higher premiums
• Previous malpractice claims history: If you have a history of claims, insurance companies will see you as a higher risk and require a higher premium to cover you

How Does the Process Work?

1. You will submit your information through a secure medical malpractice insurance quote form.
2. You can always call us and speak to an agent immediately.
3. A veteran medical malpractice insurance broker in Michigan will be assigned to you.
4. We shop your Physician Malpractice Insurance to every major malpractice insurance in Michigan.
5. Your insurance agent will take the time and go over all of your options with you, explaining everything to make certain you make the right decision.
6. We get you your insurance policy at the best price with a major insurance company.
7. 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.

Why Michigan Doctors Choose Cunningham Group

Michigan physicians choose Cunningham Group because we are one of the few medical malpractice insurance agencies that take the time to understand your specific employment situation and your approach to patient care. With access to every major medical malpractice insurance company in Michigan, our team is uniquely qualified to get you the best coverage at the most affordable price. Most Michigan 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 Michigan malpractice insurers compete for your business.

Medical Malpractice Tort Reform in Michigan

Michigan’s stable medical liability climate can be put down to several tort reforms that the Wolverine State has passed since the mid-1980s. Prior to these reforms, Michiganders were experiencing a serious access-to-healthcare dilemma. Medical malpractice claims in the state had spiraled upward from ten per 100 doctors in 1979 to 25 per 100 by 1985—an increase of 150 percent in just six years. From 1970 to 1984, the large Detroit metro-area counties of Wayne, Oakland and Macomb had seen their malpractice filings jump 1,100 percent. Medical professional liability insurance premiums had also doubled between 1980 and 1984, growing even faster in the higher-risk specialties. In response, Michigan physicians were shying away from high-risk procedures. In 1985, 42 percent of Michigan family physicians reported they had either ceased delivering babies or reduced the number they delivered; an even higher percentage of doctors reported that they had cut back on surgery and treating patients likely to require intensive care.

Michigan’s Tort Reform: Public Act 178

In response to cries from the healthcare community, the Michigan legislature passed Public Act 178, a bipartisan piece of legislation that introduced several major changes to the state’s tort law. The 1986 reforms included venue reform, requiring lawsuits to be filed in the county where the alleged injury occurred; joint-and-several liability reform; a higher standard for expert testimony; and, perhaps most important, a cap of $225,000 on noneconomic damages. Michigan has periodically strengthened these reforms. In 1993, Public Act 78 was passed, which increased the non-economic damages cap to $280,000, but also got rid of many exceptions to the cap, which had been left in the 1986 reforms. Public Act 78 also increased standards for expert testimony, required all medical malpractice plaintiffs to file an affidavit of merit and permitted binding arbitration for medical malpractice cases that involved damages not in excess of $75,000. Michigan’s noneconomic damage cap has increased periodically to keep pace with inflation. It currently stands at $438,800 for most injuries and at $783,500 for certain permanent disabilities, such as permanent cognitive disability or paralysis.

Resources for Michigan Physicians

Michigan State Medical Society
Medical Malpractice Insurance Guide
Michigan Department of Insurance and Financial Services
Michigan Health and Hospital Association
Michigan Osteopathic Association
All MD Michigan Healthcare Defense Attorney Listing