How much insurance is enough?

The amount of medical professional liability coverage a health care provider needs varies based on their specific situation. For some providers, state law dictates how much insurance is required to practice medicine. Additional factors, such as a provider’s specialty, may result in a provider wanting coverage above and beyond what is required.

Kansas law requires certain health care providers, referred to as defined health care providers per K.S.A. 40-3401, to carry basic coverage in order to practice.

This basic coverage provides $500,000 in coverage per claim and $1,500,000 in annual aggregate limits. Basic coverage is available from insurance carriers who are authorized to write business in Kansas, risk retention groups, and qualified self-funded programs.


Health Care Stabilization Fund

Defined health care providers are also required to purchase a layer of coverage from the Health Care Stabilization Fund (HCSF) to supplement their basic coverage. The Fund coverage provides an additional $500,000 per claim and $1,500,000 in annual aggregate limits. Together, these two layers of coverage make up the professional liability coverage for most Kansas health care providers.

*In Missouri, there is no Health Care Stabilization Fund; therefore, most health care professionals purchase $1,000,000 in limits from their insurance carrier.

It’s common for providers to consider adding additional insurance when they could face claims that might exceed their basic coverage. This additional coverage, known as excess or umbrella coverage, is obtained by purchasing an additional policy.

Most companies sell excess coverage in $1,000,000 layers. Each layer comes with an explicit effective date (the date on which the policy is issued) and a retroactive date (the earliest date that something may occur to trigger coverage). Keep in mind that additional insurance cannot be purchased to cover claims already in existence.

Hospitals and Other Health Care Facilities

For hospitals, their corporate culture and environment may play a significant role in deciding whether or not to purchase additional coverage. Additionally, public hospitals may wish to consider the impact of the Kansas Tort Claims Act. See, for instance, K.S.A. 75-6105.

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Physicians and Other Health Care Professionals

For physicians and other health care professionals, the decision to purchase additional insurance coverage is a personal one.

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For more information, email the KAMMCO underwriting team at or call at 1-800-232-2259.