Rex says
Money math without the spreadsheet headache. Plug in your numbers and I'll show you exactly where the dollars land.
Try a scenario
Click to load — tweak from there.Inputs
Result
Premium this policy year
$6,480
Per month
$540
Mature annual premium
$8,100
Estimated tail coverage cost
$16,200
First five years combined
$29,808
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How to use this
- 1Enter state base rate (mature, $1m/$3m) ($/year).
- 2Enter specialty / practice risk.
- 3Enter limits.
- 4Enter claims-made year.
- 5Enter clinical fte (%).
- 6Enter risk management / group credits (%).
- 7Enter tail coverage multiple (× mature).
- 8Read your premium this policy year on the right — it updates as you type.
- 9Hit Share to keep the scenario or send it to someone.
About this calculator
Medical and professional malpractice premiums vary by an order of magnitude across specialties and by a factor of three or more across states for the same specialty, because both claim frequency and jury verdicts are local. This calculator applies a specialty risk factor to a base rate you set for your state, adjusts for the limits you carry (commonly $1M per claim and $3M aggregate), and applies the claims-made step factor — a first-year claims-made policy is heavily discounted and steps up over roughly five years to a mature rate, which is why year-three premiums shock physicians who budgeted from their first-year bill. It also estimates tail coverage, the one-time purchase that keeps you covered for incidents reported after the policy ends, typically priced at 150-250% of the mature annual premium. Part-time and locum practice, group discounts, and risk-management credits move real quotes further, so treat the output as a planning figure.
Worked example
Using the values the calculator loads with:
Inputs
- State base rate (mature, $1M/$3M): 9000 $/year
- Specialty / practice risk: Medium — internal medicine, family practice
- Limits: $1M / $3M
- Claims-made year: Year 3
- Clinical FTE: 100 %
- Risk management / group credits: 10 %
- Tail coverage multiple: 2 × mature
Results
- Premium this policy year: $6,480
- Per month: $540
- Mature annual premium: $8,100
- Estimated tail coverage cost: $16,200
- First five years combined: $29,808
What each field means
Inputs
- State base rate (mature, $1M/$3M) ($/year)
- The state base rate (mature, $1m/$3m) used in the calculation, measured in $/year. Starts at 9000 $/year so you have a working example on load. Accepted range: 500–200000 $/year.
- Specialty / practice risk
- Pick the option that matches your situation — the maths changes per option. Choices: Low — psychiatry, dermatology, allied health, Medium — internal medicine, family practice, High — emergency medicine, anesthesia, Very high — OB/GYN, neurosurgery, orthopedics.
- Limits
- Pick the option that matches your situation — the maths changes per option. Choices: $500k / $1.5M, $1M / $3M, $2M / $6M.
- Claims-made year
- Pick the option that matches your situation — the maths changes per option. Choices: Year 1, Year 2, Year 3, Year 4, Year 5+ (mature), Occurrence policy.
- Clinical FTE (%)
- The clinical fte used in the calculation, measured in %. Starts at 100 % so you have a working example on load. Accepted range: 10–100 %.
- Risk management / group credits (%)
- The risk management / group credits used in the calculation, measured in %. Starts at 10 % so you have a working example on load. Accepted range: 0–40 %.
- Tail coverage multiple (× mature)
- The tail coverage multiple used in the calculation, measured in × mature. Starts at 2 × mature so you have a working example on load. Accepted range: 1–3 × mature.
Results
- Premium this policy year
- Returned as a money amount in US dollars and shown as the headline result. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Per month
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Mature annual premium
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Estimated tail coverage cost
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- First five years combined
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
FAQ
Claims-made or occurrence?
Occurrence policies cover incidents that happen during the policy period whenever they are reported, and cost more up front but need no tail. Claims-made costs less early and requires tail coverage — or a new insurer's prior-acts coverage — when you leave.
Why does year three cost more than year one?
A claims-made policy in year one only covers incidents from that single year. Each year adds exposure until the policy matures, usually around year five, so budget for the step-up rather than the first-year quote.
Who pays for tail coverage?
It is negotiable in employment contracts and frequently a sticking point. Employers sometimes pay it if you stay a minimum term or leave for retirement, so read that clause before signing.
Does this apply to non-medical professions?
The same structure prices lawyers, accountants, architects, and consultants, with different base rates and specialty factors. Set the base rate to your profession's filed range and use the risk tiers accordingly.
Accuracy and limitations
- Results are estimates before tax, fees, and inflation unless an input explicitly covers them.
- Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.
- This is educational maths, not financial advice. Check anything contractual with the lender or your accountant.
Related tools
Cite this calculator
Writing about this topic? Grab a citation — every link helps keep these tools free.
RevenueLab. (2026). Malpractice Insurance Cost Calculator. Retrieved from https://www.revenuelab.fyi/toolbox/malpractice-insurance-cost-calculator
<p>Source: <a href="https://www.revenuelab.fyi/toolbox/malpractice-insurance-cost-calculator" target="_blank" rel="noopener">Malpractice Insurance Cost Calculator — RevenueLab</a> (2026).</p>
Source: [Malpractice Insurance Cost Calculator — RevenueLab](https://www.revenuelab.fyi/toolbox/malpractice-insurance-cost-calculator) (2026).