Underwriting Guide

What Underwriters Ask About Healthcare Practices

Healthcare accounts — from medical offices to clinics to home health agencies — require professional liability (medical malpractice) as the primary coverage, alongside general liability and property. Underwriters scrutinize the clinical procedures performed, provider credentials, and malpractice claims history with exceptional care.

Medical Malpractice / Professional LiabilityGeneral LiabilityWorkers' CompensationCyber Liability / HIPAABusiness Income

Practice & Providers

What type of healthcare practice — primary care, specialty, urgent care, behavioral health, home health?
Why they ask: Specialty type determines the malpractice risk class. Surgeons, OBGYNs, and emergency medicine carry the highest rates.
How many licensed providers practice at this location (MDs, DOs, PAs, NPs)?
Why they ask: Malpractice premium is calculated per provider. Each provider's specialty, credentials, and claims history are evaluated individually.
What clinical procedures are performed in the office?
Why they ask: Invasive procedures, anesthesia administration, and surgical procedures significantly increase malpractice risk.
Does the practice have hospital privileges? At which hospital?
Why they ask: Hospital privileges indicate the provider's credentialing level and scope of practice.
Does the practice perform any procedures under sedation?
Why they ask: Anesthesia and sedation create the highest malpractice risk and may be ineligible under standard policies.

Claims History

Provide 5 years of malpractice claims history for each provider.
Why they ask: Malpractice claims history is the primary underwriting factor. Multiple claims or severity patterns can result in declination or individual provider surcharges.
Have any providers had medical board actions, license suspensions, or hospital privilege revocations?
Why they ask: Regulatory actions are material to underwriting. Disclosure is required; failure to disclose is grounds for rescission.
Is the practice currently in litigation on any matter?
Why they ask: Open litigation affects current coverage and must be disclosed. New carriers may exclude ongoing matters.

Data & Cyber

How many patient records does the practice maintain?
Why they ask: PHI (protected health information) volume drives cyber liability exposure. HIPAA breach costs scale with the number of affected individuals.
Is patient data stored on-premises or in the cloud?
Why they ask: Cloud-based EHR systems with reputable vendors can reduce cyber risk. On-premises servers without proper security are higher risk.
Has the practice experienced any data breaches or HIPAA violations?
Why they ask: Prior breaches indicate security vulnerabilities. HIPAA penalties can reach $1.9M per violation category per year.

Answers that raise red flags

Surgical procedures performed in-office without a surgery center license
Multiple malpractice claims in a 3-year period, especially with similar fact patterns
Provider with prior board action or license restriction
Practice offering aesthetic/cosmetic procedures (high-risk category for malpractice)
No cyber liability for a practice storing thousands of patient records
Claims-made policy with a gap in coverage (retroactive date issue)

Tips for presenting this risk favorably

List every provider separately with their specialty, NPI number, and claims history — do not bundle providers
Confirm the retroactive date on claims-made policies matches the provider's first date of coverage
Document EHR system used and any HIPAA compliance certifications or audits
Explain any prior claims with the outcome (dismissed, settled, amount) and any practice changes made
Confirm whether tail coverage is needed for any departing providers

Collect all this information automatically

AgencyAssist sends your client a plain-English intake link and maps every answer to the correct ACORD fields — including all the questions above.

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Related

Commercial underwriting basicsWhat underwriters look for in submissionsCommercial underwriting red flagsACORD 125 — Commercial Insurance ApplicationHow to complete the ACORD 125 — field-by-field