25 Professional Liability Insurance Statistics Every Professional Should Know
How often doctors and lawyers get sued, what malpractice claims and their defense cost, how big the medical liability market is, and how nuclear verdicts are pushing premiums up, in 25 cited statistics on professional liability and E&O insurance.
Every professional who gives advice, signs off on a design, or treats a patient can be sued for a mistake, real or alleged, and the legal bill starts long before anyone decides who was right. Professional liability insurance, called errors and omissions (E&O) coverage for most occupations and malpractice insurance for doctors and lawyers, pays for that defense and any covered settlement, up to the policy limits. This report gathers 25 cited statistics on who needs the coverage, how often claims happen, what they cost to defend and pay, and why premiums are rising. Every figure comes from a federal agency, a regulator, a medical or legal association, a peer-reviewed study, or a carrier’s own published data, and each one states the year it describes.
Key Takeaways
- A lawsuit is a career-long risk - 28.7% of physicians said in 2024 that they had been sued at least once in their career.
- Risk concentrates in a few specialties - 59.6% of OB-GYNs and 53.1% of general surgeons have been sued.
- Most claims never pay, but all of them cost money - 65% of claims are dropped, dismissed, or withdrawn, yet those still averaged $30,439 in defense costs (claims closed 2016 to 2018).
- Payouts keep growing - the average physician payment reported to the federal data bank reached about $514,000 in 2025.
- Premiums are in their seventh straight year of increases - 39.9% of medical liability premiums rose in 2025, up from 13.7% in 2018.
- The market is growing - medical professional liability premiums reached $13.71 billion in 2025.
- Legal malpractice clusters in familiar places - estate, trust, and probate work drew 13.58% of claims against lawyers, the most of any practice area.
The professionals who need coverage
1. There are about 864,000 lawyers and 863,000 physicians
The Bureau of Labor Statistics counts 863,700 lawyers and 862,800 physicians and surgeons in its 2025 employment data. These are the two professions most associated with malpractice insurance. Together they represent more than 1.7 million practitioners whose daily work creates a standing exposure to negligence claims.
2. There are 3.47 million registered nurses
Registered nurses held 3,465,400 jobs in 2025, four times the number of physicians. Whether a nurse needs an individual professional liability policy depends on how far an employer’s coverage extends, for example to licensing board complaints or work outside the main job, which is worth confirming in writing.
3. Accountants and consultants add another 2.7 million professionals
BLS counts 1,595,200 accountants and auditors and 1,077,100 management analysts, the federal category for management consultants, in 2025. A missed tax deadline or a flawed recommendation can cost a client real money, and the client can sue to recover it. Because the harm in those cases is financial rather than physical, the claims fall under errors and omissions coverage rather than general liability.
4. Engineers, architects, and agents carry design and advice exposure
The 2025 counts include 380,600 civil engineers, 124,600 architects, 530,600 real estate brokers and agents, and 572,600 insurance sales agents. A design error can surface years after a project closes, and a missed disclosure can unwind a sale. In each case the claim alleges a professional mistake, which is the trigger a professional liability policy responds to.
How often doctors are sued
5. 28.7% of physicians have been sued at least once
In the AMA’s 2024 survey data, 28.7% of physicians said they had been sued at least once in their career, and 1.8% were sued in the previous year. Both figures are lower than in 2016, when they were 34.0% and 2.3%. Insurer data put the rate higher: The Doctors Company says actual claims frequency was about 4.6% in 2025, down from 7.5% in 2016. Either way, a one-year risk that looks small adds up over a 30-year career.
6. Nearly half of physicians 55 and older have been sued
Claim risk builds with time in practice. The AMA found that 45.2% of physicians aged 55 and over had been sued at least once, compared with 22.2% of those aged 45 to 54 and 11.0% of those under 45. This is why tail coverage matters when a physician retires or changes jobs: claims can arrive years after the care was delivered, and the exposure does not end with the last patient.
7. Six in ten OB-GYNs have been sued
Specialty is one of the biggest drivers of risk. Pooled 2022 and 2024 AMA data show that 59.6% of obstetrician-gynecologists and 53.1% of general surgeons had been sued at least once, and almost 75% of physicians in those two specialties aged 55 and over had been sued. At the other end, 9.2% of psychiatrists and 4.5% of hematologists and oncologists had faced a claim. Premiums follow the same pattern.
8. One paid claim makes another nearly four times as likely
A national study of all U.S. physicians found that 12.4% of physicians with one paid claim from 2009 to 2013 had at least one more paid claim from 2014 to 2018, compared with 3.3% of physicians with no prior paid claims. The authors describe that as almost four times the likelihood. For an underwriter, a prior paid claim is one of the strongest signals of future claims.
How claims end and what defense costs
9. 65% of claims are dropped, dismissed, or withdrawn
Being sued is not the same as being found negligent. Of medical liability claims that closed between 2016 and 2018, 65% were dropped, dismissed, or withdrawn, and of the 6% decided by a trial verdict, 89% were won by the defendant. The same data show 72% of closed claims ended with no payment. The Doctors Company adds that about 93% of claims are resolved before trial. The insurance value lies in paying for the defense, which is owed whether or not the claim has merit.
- Closed with no payment 72%
- Closed with a payment 28%
10. Even a dropped claim averaged $30,439 to defend
Defense is expensive at every stage. For claims closed from 2016 to 2018, the average defense cost was $30,439 for claims that were dropped, dismissed, or withdrawn, $77,117 for settled claims, $158,843 for trials the physician won, and $236,519 for trials the plaintiff won. Because they are so common, dropped claims accounted for 37.6% of all defense costs. A professional without coverage pays these bills personally, even when the case goes nowhere.
11. Settled claims paid an average of $372,309
When claims do pay, the amounts are substantial. The average indemnity payment on settled claims that closed between 2016 and 2018 was $372,309, and claims tried to a plaintiff’s verdict averaged $635,829. The AMA notes that $1 million/$3 million limits are the most common in the premium data it tracks, so a single large verdict can approach the per-claim ceiling.
12. The average claim takes 20 months to resolve
Malpractice claims move slowly. A study of claims closed from 1995 to 2005 found the mean claim took 20.3 months to resolve, and that the average physician spends 50.7 months, almost 11% of a 40-year career, with an unresolved claim open. That time carries its own costs in depositions, stress, and lost practice hours, none of which a jury award captures.
What malpractice payments look like
13. The federal data bank logged 11,263 malpractice payments in 2025
The National Practitioner Data Bank received 11,263 medical malpractice payment reports in 2025, down from 11,627 in 2024 and 11,676 in 2023. Payment counts dipped to 9,685 in 2020 and 9,307 in 2021, during the pandemic years, before recovering. In total, the data bank held about 529,000 payment reports as of December 2025, each one a payment made for the benefit of a specific practitioner.
14. The average physician payment reached about $514,000
Fewer claims does not mean cheaper claims. Based on NPDB physician payment data, The Doctors Company reports the average payment reached about $514,000 in 2025, roughly 20% higher than in 2022. The number of NPDB-reported claims exceeding $2 million has increased more than tenfold since 1990. As the insurer puts it, lower frequency alone is not enough to relieve pressure on premiums while severity keeps rising.
15. One in thirteen paid claims tops $1 million
A study of 280,368 paid claims in the NPDB from 1992 to 2014 found that 7.6% exceeded $1 million. The same study found that 32.1% of paid claims involved a patient death and that diagnostic error was the most common allegation, at 31.8%. The study’s mean payment over the full period was $329,565, in nominal dollars.
The medical liability insurance market
16. Medical professional liability premiums hit $13.71 billion
Insurers wrote $13.71 billion in direct medical professional liability premiums in 2025, up from $12.99 billion in 2024, according to the NAIC’s countrywide summary. Premiums were flat at around $9.2 billion to $9.4 billion from 2016 to 2018, then rose every year after. That turn lines up with the shift from a soft market to steady rate increases that physicians have felt since 2019.
Data
| 2016 | $9.32B |
|---|---|
| 2017 | $9.20B |
| 2018 | $9.36B |
| 2019 | $9.79B |
| 2020 | $10.19B |
| 2021 | $11.20B |
| 2022 | $11.89B |
| 2023 | $12.27B |
| 2024 | $12.99B |
| 2025 | $13.71B |
17. Losses and defense costs consumed 75.6% of premiums
The industry’s loss and defense cost ratio was 75.60% in 2025, up from 71.05% in 2024. Insurers incurred $7.80 billion in direct losses plus $2.39 billion in defense and cost containment expenses. In Pennsylvania, losses and defense costs exceeded premiums at 100.72%. The ratio excludes insurers’ other operating expenses, so a rising figure squeezes margins quickly.
18. New York is the largest medical liability market
New York led all states with $1.79 billion in medical professional liability premiums in 2025, followed by California at $1.23 billion, Florida at $1.09 billion, and Pennsylvania at $1.03 billion. Size alone does not set the total: Texas wrote $612.6 million, about a third of New York’s figure.
19. 39.9% of medical liability premiums rose in 2025
AMA analysis of Medical Liability Monitor rate survey data found 39.9% of premiums increased from 2024 to 2025, the seventh straight year of rising rates and up from 13.7% in 2018. Only 3.1% of premiums fell. Thirty-six states reported at least one increase in 2025, and 11 states had at least one premium jump by 10% or more. The AMA notes a nationwide hard market has not arrived, but certain states are already seeing a notable surge.
20. An OB-GYN can pay four times what an internist pays
In Miami-Dade County, Florida, one insurer’s 2025 manual rate for obstetrician-gynecologists and general surgeons was $243,988, compared with $59,736 for internal medicine physicians. Manual rates like these are usually quoted for $1 million/$3 million limits and do not reflect credits or discounts. Location matters too: California, which caps noneconomic damages, had lower reported premiums than every other state in the AMA’s comparison.
Lawyers and other E&O claims
21. Estate and trust work produces the most legal malpractice claims
The ABA’s Profile of Legal Malpractice Claims for 2020 to 2023 found that estate, trust, and probate matters drew 13.58% of claims, followed by real estate at 13.19%, plaintiff personal injury at 12.73%, family law at 10.02%, and collections and bankruptcy at 8.84%. Lawyers’ liability insurer ALPS notes these same five areas have led for 25 years. The pattern points to deadline-heavy, document-heavy practices where a single missed step can cost a client money.
22. Half of legal malpractice claims stem from substantive errors
Substantive errors, such as failing to know or properly apply the law, accounted for 51% of claims in the ABA’s 2020 to 2023 data, and administrative errors such as calendaring failures now account for nearly 25%. By activity, preparing, filing, and transmitting documents produced 35.66% of claims. Firms of one to five attorneys were responsible for more than 52% of all claims, which ALPS notes is not surprising given how many attorneys practice in small firms.
23. Law firms lead the small-business ransomware list
E&O is not the only exposure professional firms face. Among more than 1,400 ransomware complaints the FBI received in 2025 from organizations outside critical infrastructure, legal services accounted for 18%, engineering and architectural services 10%, and consulting 7%. Depending on the policy forms, a breach of client files may fall under cyber liability insurance rather than E&O, so it is worth checking how the two policies fit together.
Social inflation and nuclear verdicts
24. Courts returned 60 malpractice verdicts over $10 million in 2025
Verdict tracking cited by The Doctors Company identified 60 medical malpractice verdicts exceeding $10 million in 2025, after 70 in 2023 and 52 in 2024. The average of the 50 largest verdicts rose from $32.6 million in 2022 to $50 million in 2025. Even though few cases reach trial, these awards shape what plaintiffs expect in settlements, which raises the value of claims that never see a courtroom.
25. Inflation added $4 billion to malpractice losses in a decade
A study commissioned by The Doctors Company estimates that economic and social inflation added $4 billion in insured losses and expenses for physician-focused insurers, or 11% of booked losses, in the decade ending in 2024. The trend extends well beyond medicine: the Casualty Actuarial Society and Triple-I estimate that legal system abuse added $231.6 billion to $281.2 billion to U.S. liability insurance losses over the same decade. Over time, costs like these flow through to rates.
How to protect your practice and manage coverage costs
The data point to a few practical steps for any professional weighing E&O or malpractice coverage:
- Buy for your real risk profile. Specialty and practice area drive claim odds, from 59.6% of OB-GYNs ever sued to 9.2% of psychiatrists, so make sure your class code and limits match the work you actually do.
- Plan for the tail. Claims arrive years later and take an average of 20.3 months to resolve, so arrange tail or prior-acts coverage before you retire, switch employers, or change carriers.
- Fix the administrative basics. Calendaring and other administrative errors cause nearly 25% of legal malpractice claims, and a docket system is far cheaper than a claim.
- Revisit limits as verdicts grow. With 60 malpractice verdicts above $10 million in 2025, review whether your per-claim and aggregate limits still fit.
- Compare carriers and quotes. Start with our carrier comparison, then compare quotes, and check state-specific options in the location directory.
- Check our sources. We explain how we gather and verify figures on the methodology page.
Frequently Asked Questions
How likely is a doctor to be sued for malpractice?
In 2024, 1.8% of physicians were sued in the prior year and 28.7% had been sued at least once in their career. The odds rise with age and specialty: 45.2% of physicians 55 and older and 59.6% of OB-GYNs have been sued.
How much does it cost to defend a malpractice claim?
For claims closed from 2016 to 2018, average defense costs ranged from $30,439 for dropped claims to $236,519 for trials the plaintiff won. Professional liability insurance generally covers these defense costs, though some policies count them against the limit, so check how yours is written.
How much does malpractice insurance cost?
It depends heavily on specialty and state. One insurer’s 2025 manual rate in Miami-Dade County was $243,988 for OB-GYNs and general surgeons but $59,736 for internists, and California premiums ran lower than every other state the AMA compared. Rates are rising, with 39.9% of premiums increasing in 2025.
What are the most common legal malpractice claims?
Estate, trust, and probate work led with 13.58% of claims in the ABA’s 2020 to 2023 data, followed by real estate and plaintiff personal injury. By error type, substantive errors caused 51% of claims and administrative errors nearly 25%.
What is social inflation and how does it affect premiums?
Social inflation is the growth in claim costs beyond ordinary inflation, driven by larger verdicts and litigation trends. Economic and social inflation added an estimated $4 billion to physician-focused insurers’ losses in the decade ending in 2024, and 60 malpractice verdicts topped $10 million in 2025. Insurers recover those costs through higher premiums, which you can compare on our professional liability insurance page.