Are you a medical provider who is just starting out or not certain if you have enough insurance coverage for potential malpractice issues? If you need information on how medical malpractice insurance works in the state of Illinois, you’ve come to the right place. The medical field can be complicated when it comes to insurance and even if you maintain ethical and legal standards, legal claims against your practice can be costly. You’ll want to know that you have the right kind of insurance as well as an adequate amount of coverage if you face a malpractice suit.

Illinois Requirement Status for Malpractice Insurance

In the state of Illinois, it’s not a requirement for all doctors and practices to have medical malpractice insurance. However, this is something that is dictated by each facility. If you work out of a larger facility, you’ll want to find out their exact stance on if you will need to have medical malpractice coverage for your practice. Look into this issue as soon as possible so that you can avoid any surprises and stress down the road.

Malpractice Insurance Cost in Illinois

Insurance in general can be expensive to maintain, but the specific premium amounts are determined by the level of coverage you have. Some factors go into this equation for how much it will cost to have this insurance for your practice. Discuss with a broker the details of your situation and get a recommendation on what will work out best for your needs.

Even without having to pay for loss of employment or medical costs, malpractice claims can cost the provider a lot of money in the long run. This is even the case if there is a settlement out of court for a fraction of the damages due to negligence or a lower standard of care. You can apply for $1,000,000 per occurrence and $3,000,000 for an annual aggregate, the average for Illinois medical professionals.

Illinois Medical Malpractice Damage Caps

The matter of damage caps under medical malpractice has become a part of Illinois’ tort reform efforts. Legislators in Illinois passed a law that sets a cap amount for non-economic damages a plaintiff can recover in a malpractice lawsuit. However, this was overturned in 2010 when the Illinois Supreme Court determined that this law was unconstitutional.

Economic damages are not considered under the statutory damage cap in Illinois. This includes compensation for medical treatment given for injuries from the malpractice, lost income and the individual’s lack of earning capacity, and other types of financial losses that fall under the medical provider’s error.

Illinois Statute of Limitations on Medical Malpractice Lawsuits

There is a time limit for how long someone has the right to file a lawsuit for medical malpractice issues. Various types of cases have different deadlines, but it’s important to note they are strict. People who would like to file must typically do so within two years of becoming aware or when they reasonably should have known about a provider’s negligent action or inaction against them. This is different when it comes to individuals who were under 18 when alleged malpractice happened to them, and they usually will have eight years to file a lawsuit.

Claim Data

The National Practitioner Databank (NPDB) is a repository of medical malpractice claim information for healthcare providers in the United States. Following is a summary of data where we can observe the number of malpractice payments, adverse actions, and other disciplinary actions taken against healthcare professionals.

Year	Payment Count	Total Payments	Average Payment	Max Payment	Over 500K Count	Over 1M Count	Over 5M Count
1995	1562	$183,748,600	$117,637	$1,750,000	58	14	0
1996	1752	$222,286,250	$126,876	$6,050,000	89	10	1
1997	1837	$206,901,250	$112,630	$2,550,000	70	6	0
1998	1513	$212,267,650	$140,296	$6,850,000	75	15	1
1999	1644	$218,950,150	$133,181	$3,150,000	91	9	0
2000	1444	$199,970,200	$138,484	$2,350,000	82	8	0
2001	1506	$254,310,050	$168,865	$8,950,000	102	18	1
2002	1443	$252,199,500	$174,774	$8,150,000	117	18	1
2003	1419	$244,978,400	$172,642	$7,650,000	113	21	1
2004	1295	$231,513,550	$178,775	$4,450,000	111	15	0
2005	1245	$259,040,750	$208,065	$5,950,000	119	21	1
2006	1125	$256,191,800	$227,726	$6,250,000	120	23	3
2007	1049	$234,722,800	$223,759	$7,450,000	115	18	3
2008	1049	$221,869,150	$211,505	$7,450,000	117	12	2
2009	1057	$217,911,800	$206,161	$5,950,000	107	18	1
2010	971	$197,138,050	$203,026	$3,950,000	108	15	0
2011	957	$192,083,400	$200,714	$2,550,000	110	10	0
2012	982	$207,916,700	$211,728	$2,450,000	130	12	0
2013	1009	$257,398,750	$255,103	$12,500,000	147	18	1
2014	956	$206,634,250	$216,145	$2,250,000	125	13	0
2015	983	$246,783,050	$251,051	$9,750,000	133	24	2
2016	937	$213,775,700	$228,149	$1,950,000	124	12	0
2017	916	$239,270,500	$261,212	$7,050,000	143	20	2
2018	906	$251,996,550	$278,142	$8,750,000	154	28	1
2019	754	$214,747,500	$284,811	$6,450,000	129	18	1
2020	676	$189,931,050	$280,963	$4,750,000	117	17	0
2021	616	$188,848,700	$306,573	$4,950,000	121	16	0
2022	701	$206,602,750	$294,726	$3,450,000	134	16	0
2023	786	$300,203,200	$381,938	$27,500,000	166	26	3

Protect Your Assets with Malpractice Insurance

If a plaintiff’s attorney can prove that you committed even partial negligence or wrongdoing in the case, you stand to lose a great deal of your assets. With the average malpractice claims paying out compensation starting in the tens of thousands of dollars, your office and livelihood may take a serious hit. When you have an appropriate level of insurance that matches the size of your practice and potential liability, it can help alleviate those risks. It’s always a good idea to have medical malpractice coverage even if it’s not mandatory at your particular office.