How much does telemedicine malpractice insurance cost for a telehealth company?

Telemedicine professional liability for a telehealth company is rated on the practice, not on a headcount of physicians, so the cost tracks projected patient volume or revenue rather than a per-provider rate. A small or launching telehealth practice with a clean profile commonly sees an entity-level malpractice premium starting in the low five figures, scaling with volume, the number of states, and the clinical scope.

The biggest cost drivers are the states of operation (each is a distinct malpractice environment, and some are materially more expensive), the clinical scope, and prescribing. Prescribing controlled substances or high-scrutiny medications such as GLP-1 drugs is a high-scrutiny class that both narrows the market and pushes the premium up. Limits commonly start around $1M per claim and $3M aggregate for a smaller practice and scale from there.

Because a telehealth company usually also carries cyber and technology E&O for its platform, the malpractice premium is one part of a program, and a partner or payor contract can require higher limits that raise the cost. Pricing is best sized against the actual footprint and contract requirements rather than a single rate.