Non-Physician Healthcare Providers Face Inconsistent Liability Insurance Requirements Across States

Liability insurance requirements for healthcare providers remain inconsistent across the United States, creating challenges for compliance and risk management. As Katherine J. Henry and Anna Hamel of Bradley Arant Boult Cummings explain, while all healthcare professionals are encouraged to secure policies covering negligence claims, many states do not mandate malpractice or other liability insurance at all. Where requirements exist, they vary significantly in scope and application, with some states limiting obligations to physicians and others extending them to a wider range of practitioners, including non-physician healthcare providers.

Indiana illustrates a broad approach, requiring physicians, nurses, psychologists, optometrists, and physical therapists to maintain malpractice insurance or other proof of financial responsibility. Minimums are defined under Indiana Code § 34-18-14-3, ranging from $250,000 to $500,000 per occurrence. Rhode Island, by contrast, restricts requirements to “active medical or dental professionals,” narrowly defined as physicians and dentists, with mandated coverage of at least $1 million per claim and a total of $3 million in aggregate.

Other states impose distinct obligations on non-physician providers. Pennsylvania requires occupational and physical therapists to carry at least $1 million in professional liability insurance, which is incorporated into their licensing requirements. Kansas similarly mandates insurance for both occupational and physical therapists, with statutory minimums of $100,000 per claim and $300,000 aggregate, or higher amounts if covered through employer-sponsored policies.

Liability insurance requirements for non-physician healthcare providers are fragmented and vary by jurisdiction. Organizations must confirm that providers not only maintain adequate coverage but also meet applicable statutory minimums. Consulting legal and insurance advisors is essential to avoid fines, penalties, or gaps in protection.