Medical Malpractice · California

Coverage for the care you provide.

Professional liability for physicians, surgeons, dentists, nurse practitioners, physician assistants, med spas and allied health providers.

Quick answer Medical malpractice insurance in California is professional liability that pays defense costs and settlements when a patient claims a provider's care caused harm, for physicians, surgeons, dentists, nurse practitioners, physician assistants, med spas and allied health.

Most medical malpractice policies are claims-made, which covers claims reported while the policy is active.
An occurrence medical malpractice policy covers incidents during the policy period whenever they are reported.
Tail coverage is an extended reporting period that covers claims reported after a claims-made policy ends, for incidents during the policy.
California's MICRA rules on medical liability changed in 2023, with caps on non-economic damages rising over time.
Providers covered by an employer's malpractice policy should confirm whether they are individually named and whether tail coverage is included if they leave.

By Sam Alishahi · CA Insurance License #4348151 · Reviewed November 2026 · How this page is researched

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How it works

Claims-made, occurrence and tail

Medical malpractice insurance pays defense costs and settlements when a patient claims your care caused harm. Most policies are claims-made, which covers claims reported while the policy is active; leaving a claims-made policy usually calls for extended reporting (tail) coverage or prior-acts coverage on the next policy.

California's MICRA rules on medical liability changed in 2023, with caps on non-economic damages rising over time. I shop malpractice with carriers that write California physicians and allied health, alongside the business insurance for your practice.

Professional liabilityClaims that your care caused harm.
Defense costsAttorneys and experts, often with your consent to settle.
License defenseMedical board complaints, on many policies.
Tail or prior actsProtection when you change policies or retire.

Who I help

Providers that call me

Physicians and surgeons

Solo practices and groups.

Dentists

General and specialty dentistry.

Nurse practitioners and PAs

Individual coverage.

Med spas and aesthetics

Injectables and laser treatments. See details

Allied health

Therapists, chiropractors and technicians.

The practice itself

Office, equipment and cyber. See details

Before you call

What underwriters will ask

Having these ready means I can go to market on the first call. The quote form asks for the same things, and anything you don’t know yet can wait.

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Provider: specialty, license and board certification.
Practice: location, setting and procedures performed.
Coverage now: carrier, claims-made or occurrence, retro date.
Limits: what hospitals or contracts require.
Changes: any move, retirement or group change coming.
History: prior claims and board actions.

California's MICRA caps after AB 35

In California, Civil Code 3333.2 limits noneconomic damages in a professional negligence case against a health care provider or health care institution. Noneconomic means pain, suffering, inconvenience, physical impairment, disfigurement and other nonpecuniary damage. The current version of the section applies to all cases filed, or arbitrations demanded, on or after January 1, 2023. These are legal limits on what can be awarded, not policy limits.

Three separate caps, not one. In an injury case that doesn't involve a death, the statute sets $350,000 for all health care providers together, $350,000 for all health care institutions together, and $350,000 for unaffiliated providers or institutions whose separate negligence happened at, or in relation to medical transport to, an unaffiliated institution.
Wrongful death. The same three categories apply at $500,000 each.
Scheduled increases. The injury amount rises by $40,000 each January 1 for 10 years, up to $750,000. The death amount rises by $50,000 each January 1 for 10 years, up to $1,000,000. Beginning January 1, 2034, those two amounts are adjusted for inflation by 2 percent each January 1.
Which year counts. The amount in effect at the time of judgment, arbitration award or settlement is the one that applies.

The amounts apply regardless of the number of defendants or causes of action, and no provider or institution defendant can be liable in more than one category. The statute's definition of health care provider includes the provider's employer, professional corporation or partnership, one reason underwriters ask how you, your practice entity and any facility you work in are each insured. Because the amounts change each January 1, it's worth reviewing your liability limits with me at renewal. Outside California, whether and how noneconomic damages are capped varies by state.

The deadline to sue and the 90-day notice

Two sections of California's Code of Civil Procedure control when a malpractice suit against a health care provider can be filed.

The time limit (CCP 340.5). Three years after the date of injury or one year after the patient discovers the injury, or with reasonable diligence should have, whichever comes first. The time can't exceed three years unless it is tolled for proof of fraud, intentional concealment, or a foreign body with no therapeutic or diagnostic purpose or effect left in the patient.
Minors. A minor's action must be filed within three years of the alleged wrongful act. For a child under six, the period is three years or until the eighth birthday, whichever is longer. The time is also tolled while a parent or guardian and the defendant's insurer or provider have committed fraud or collusion in failing to bring the action.
The notice of intent (CCP 364). No suit may be filed until the provider has had at least 90 days' notice of the intent to sue. No particular form is required, but the notice must state the legal basis of the claim and the type of loss, including the nature of the injuries. If the notice is served within 90 days of the end of the limitations period, the time to file is extended 90 days from service.

For many providers, that notice letter is the first sign of a claim. When one arrives, send it to your carrier promptly, then read how your policy defines a claim and what it requires for reporting. If you're changing carriers or retiring, tell me about any letter or patient outcome you're concerned about before the switch; underwriters ask about known incidents on the application. Employed clinicians should also send a copy to whoever handles claims under the employer's policy.

Who reports a payment, and where it shows up

California's reporting rules and the federal data bank both reach payments made on your behalf.

The Medical Board (B&P 801.01 and 803.1)

For licensees of the Medical Board, the Osteopathic Medical Board, the Board of Podiatric Medicine and the Physician Assistant Board, the insurer, the licensee or counsel, or a self-insuring government agency must report any settlement over $30,000, any arbitration award, and any judgment not reversed on appeal. That includes a settlement over $30,000 where a party is a medical group or other entity you own part of or that employs or contracts with you. The report is due within 30 days after the settlement is signed by all parties, the award is served or the judgment is entered. Section 801.01 also bars an insurer from settling without the insured's written consent unless both waive that requirement. Under 803.1, the board discloses judgments and arbitration awards of any amount. Settlements of $30,000 or more are disclosed once there are three (low-risk specialty) or four (high-risk specialty) within the last 10 years, without the dollar amount.

Licensees without coverage (B&P 802)

Licensees of the boards listed in B&P 800, other than physicians, podiatrists and osteopathic physicians, such as dentists, nurses, chiropractors and psychologists, who have no professional liability insurance for the claim must report a settlement, judgment or award over $3,000 within 30 days. For marriage and family therapists, clinical social workers and professional clinical counselors, the threshold is $10,000.

The National Practitioner Data Bank

Any entity that pays a written malpractice claim or judgment for a practitioner's benefit reports it within 30 days of payment, at any amount, and sends a copy to the state licensing board. Payments from your personal funds aren't reported, but a sole-practitioner corporation paying for you must report. You can place a report in dispute status and, after 60 days of trying to resolve it with the reporter, ask for federal review.

Patient arbitration agreements that hold up

Many practices ask patients to agree to arbitrate malpractice disputes. In California, CCP 1295 sets the form of that agreement. A contract that meets subdivisions (a), (b) and (c) is not treated as a contract of adhesion, unconscionable or otherwise improper for that reason.

The arbitration provision must be the first article of the contract and use the statute's wording, which says both parties give up their constitutional right to have a malpractice dispute decided in a court of law before a jury.
Immediately before the patient's signature line, the contract must carry this notice in at least 10-point bold red type: "NOTICE: BY SIGNING THIS CONTRACT YOU ARE AGREEING TO HAVE ANY ISSUE OF MEDICAL MALPRACTICE DECIDED BY NEUTRAL ARBITRATION AND YOU ARE GIVING UP YOUR RIGHT TO A JURY OR COURT TRIAL. SEE ARTICLE 1 OF THIS CONTRACT."
The contract can be rescinded by written notice within 30 days of signature. A guardian or conservator can give that notice for a patient who is incapacitated or a minor.
A contract for a minor's care signed by a parent or legal guardian can't be disaffirmed on that basis.

Arbitration awards are reported to the Medical Board at any amount, as described above. If you use these agreements, have your counsel compare yours to the current statute, keep signed copies with the patient record, and tell underwriters you use them. If you also run a med spa or offer telehealth visits and those intake forms include an arbitration clause, the same wording rules apply.

Questions

Medical malpractice insurance, answered

What's the difference between claims-made and occurrence?

Occurrence covers incidents during the policy period whenever they're reported. Claims-made covers claims reported while the policy is active, so switching or retiring usually needs tail or prior-acts coverage.

What is tail coverage?

An extended reporting period that covers claims reported after a claims-made policy ends, for incidents during the policy.

Does my employer's policy cover me?

Sometimes. Employed providers should confirm whether they're individually named and whether tail is included if they leave.

What do underwriters rate on?

Specialty, procedures, location, limits and claims history.

Do you offer medical malpractice insurance outside California?

Yes. Clients across the country send the same quote form. Sam Alishahi is licensed in all 50 states and Washington, DC and places policies there directly. The shopping across carriers works the same way. Rules, minimums and markets differ by state — see insurance requirements by state.

Official sources

Often placed alongside this

Coverage

Medical office insurance

Property, liability and business income for medical and dental practices.

See coverage Coverage

Professional liability (E&O)

Errors and omissions coverage for advice and services.

See coverage Coverage

Dental practice insurance

Malpractice, property and liability for dentists.

See coverage

Questions people ask: Claims-made vs occurrence: what is the difference?

Also covered with this: Acupuncturist insurance Ambulance company insurance Optometrist insurance Podiatrist insurance Speech therapist insurance Medical lab insurance Surgery center insurance Chiropractor insurance Med spa insurance Physical therapy clinic insurance

By state: Insurance requirements by state

Medical malpractice

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Alishahi Insurance · Saman Alishahi, independent insurance broker, California License #4348151. General information, not a quote or a promise of coverage; coverage depends on underwriting and the terms, conditions and exclusions of the policy actually issued.

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