Are you a medical doctor or practice administrator who needs Michigan medical malpractice insurance? We can help you find the perfect policy to ensure you are properly protected and compliant with the law. However, before you choose a policy, you should be informed about all the state requirements and potential costs to ensure you make an informed decision. Here's what you should know about malpractice insurance in Michigan.

What You Need to Know About Michigan Malpractice Insurance

Is Medical Malpractice Insurance Required in Michigan?

Medical professionals are not required to have malpractice insurance by law. However, it may be required to work at a specific facility. Many hospitals and healthcare practices require doctors to have medical malpractice coverage in order to use the facility's resources. So, even though the state doesn't require medical malpractice insurance, a lack of coverage can limit your career opportunities and impact your professional reputation.

How Much Medical Malpractice Is Required in Michigan?

There is no set requirement for how much malpractice insurance is necessary because it isn't a legal requirement. So, rates can vary depending on the facility where you wish to practice and the amount of risk associated with your field.

The more risk involved in a given specialty, the more coverage that's required. For instance, a brain surgeon will likely be required to have significantly more coverage than a dermatologist due to the nature of their work. Additionally, specific facilities may have more stringent requirements than others, even within the same specialty. Consult a professional if you need to know what amount of coverage makes sense for your situation.

How Much Does Medical Malpractice Insurance Coverage Cost in Michigan?

The cost of Michigan medical malpractice insurance can vary depending on a variety of factors.

Variables that may impact the cost of coverage include:

• Your location
• Your specialty
• Your experience in the field
• Your history of prior malpractice claims

Generally, higher-risk specialties will incur higher costs because the more coverage you have, the higher your rates will be. So, you should speak to an expert to determine how much coverage you need and what it will cost you.

Michigan Malpractice Damages Cap

Michigan law places specific caps on the award of non-economic damages to victims in medical malpractice claims. Economic damages refer to direct costs that were a result of the injury, such as medical bills or loss of income if the victim had to miss work. Non-economic damages refer to less tangible losses, such as the pain and suffering caused by the ordeal.

Michigan law caps non-economic damages at a set amount with a "lower limit" and "upper limit." The lower limit is for cases where the harm to the patient was temporary, while the upper limit is reserved for instances where the damage is permanent. As of 2024, the lower limit for Michigan medical malpractice claims is $590,000, while the upper limit is $1,016,000. However, the upper limit only applies to life-altering situations such as the paralysis of one or more limbs or permanent brain or spinal cord injury.

Top Malpractice Insurance Carriers in Michigan

• CM&F Group
• Doctors Company Insurance Group
• ISMIE Mutual Insurance Company
• Medical Protective Company

Overview of Michigan Tort Reform

Michigan was among one of the first states to pass tort reform legislation with the creation of the Medical Malpractice Arbitration Act in 1975. Since then, Michigan has enacted multiple phases of tort reform legislation.

The first phase came in 1986, making changes to the venue where claims could be filed and addressing joint and several liability concerns. The next phase of legislation came in 1993, enforcing more file and record sharing between parties in a lawsuit and widening the scope of "non-economic" damages.

However, the 1995 tort reform package overhauled Michigan's existing tort reform system and made significant changes to venue provisions, caps on non-economic damages, and standards for expert witness testimony. Over the years, Michigan's tort reform standards have continued to evolve and the 2013 Patient's First Reform Package sought to restore some of the legislation that existed in the '86 and '93 laws.

Michigan Telemedicine Requirements

The rise of telemedicine also brings added complexities to the medical field. So, practitioners who plan to utilize this approach should understand the state requirements. Here are a few important telehealth requirements in Michigan.

• Doctors must be licensed in the state of Michigan to provide any telehealth services.
• Telemedicine must only be used when there is a clinical benefit to the patient.
• The health professional must obtain direct or indirect consent for all services provided via telemedicine.
• The technology must meet the standards of audiovisual compliance according to current regulations.
• Certain services require face-to-face contact, and in these instances, telemedicine can not be used as a replacement, only an enhancement.

If you have any questions about the use of telemedicine in Michigan or what is required of medical professionals, reach out to a legal expert.

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	1061	$97,866,750	$92,240	$1,550,000	19	2	0
1996	696	$74,773,350	$107,433	$1,950,000	17	6	0
1997	673	$65,163,800	$96,826	$2,950,000	11	1	0
1998	759	$73,453,800	$96,777	$1,250,000	9	1	0
1999	773	$79,722,750	$103,134	$3,050,000	10	3	0
2000	692	$76,977,950	$111,240	$2,450,000	15	3	0
2001	832	$96,191,750	$115,615	$4,050,000	21	4	0
2002	791	$94,755,900	$119,793	$1,950,000	20	3	0
2003	605	$81,447,050	$134,623	$1,450,000	22	3	0
2004	566	$76,281,250	$134,773	$3,850,000	15	6	0
2005	491	$65,529,000	$133,460	$1,750,000	18	3	0
2006	438	$58,109,500	$132,670	$2,950,000	12	3	0
2007	455	$63,799,750	$140,219	$1,750,000	22	1	0
2008	537	$101,243,750	$188,536	$5,850,000	37	11	1
2009	411	$79,978,500	$194,595	$3,150,000	32	7	0
2010	326	$53,906,250	$165,357	$2,850,000	15	4	0
2011	354	$62,786,750	$177,364	$2,950,000	20	6	0
2012	344	$69,729,750	$202,703	$5,950,000	20	3	1
2013	328	$51,126,750	$155,874	$1,050,000	19	1	0
2014	394	$75,843,750	$192,497	$4,750,000	24	6	0
2015	346	$67,862,500	$196,134	$2,950,000	24	7	0
2016	334	$59,502,500	$178,151	$3,550,000	19	4	0
2017	283	$73,558,950	$259,926	$4,950,000	27	8	0
2018	257	$65,102,250	$253,316	$2,450,000	26	7	0
2019	266	$69,712,000	$262,075	$3,150,000	35	10	0
2020	206	$52,761,000	$256,121	$7,450,000	23	3	1
2021	231	$52,450,750	$227,060	$2,950,000	19	5	0
2022	304	$106,616,500	$350,712	$9,950,000	51	11	2
2023	280	$85,189,750	$304,249	$4,950,000	39	6	0

The year 2023 witnessed a dip in total payments to $85,189,750, though the average payment surged to $304,249. With 39 payments surpassing the $500K mark, it underscores continued substantial financial transactions.