Summary
California physicians face increased malpractice exposure under AB 35, which raises damage caps and expands attorney fees. The Cooperative of American Physicians (CAP) offers tailored coverage through its Mutual Protection Trust, helping physicians navigate this evolving legal landscape.
What Does Medical Malpractice Insurance Cover in California?
Medical malpractice insurance protects physicians accused of professional negligence resulting in patient injury or death. It provides:
- Legal defense and court representation
- Coverage for settlements and judgments
- Protection against economic and noneconomic damages
In California, malpractice coverage is often required for:
- Hospital privileges
- Health plan contracts
- Office leases and medical group affiliations
Robust coverage ensures access to experienced legal counsel and financial support throughout the litigation process.
How AB 35 Changes MICRA for California Physicians
For nearly 50 years, the Medical Injury Compensation Reform Act (MICRA) helped stabilize malpractice insurance by capping noneconomic damages and attorney fees. This balance preserved patient access to care while keeping premiums predictable.
In 2022, Assembly Bill 35 (AB 35)—also known as “Modern MICRA”—introduced major reforms:
Key Changes Under AB 35
- Higher Damage Caps
- Wrongful death claims: cap increases from $250,000 to $1 million
- Other claims: cap increases to $750,000
- Annual 2% increases begin in 2034
- Stacked caps may apply when multiple providers are named
- Expanded Attorney Fees
- Revised contingency fee structures incentivize more lawsuits
- Encourages broader defendant naming and aggressive litigation
These changes increase liability exposure and legal costs for California physicians, making malpractice insurance more critical than ever.
Why California Physicians Choose CAP for Malpractice Insurance
The Cooperative of American Physicians (CAP) has supported California physicians for 50 years. Through the Mutual Protection Trust (MPT)—rated A+ (Superior) by AM Best—CAP provides physician-focused coverage tailored to California’s legal and clinical environment.
CAP’s Comprehensive Support Includes:
Personalized Risk Management
One-on-one consultations to identify and mitigate practice-specific risks
24/7 Incident Response
Immediate access to experts when adverse events occur
Continuing Medical Education (CME)
Webinars, training, and publications to help you stay ahead of emerging threats
Practice Resources
Complimentary HR tools and practice management services
Entity Coverage
Protection for medical groups and employed providers
How to Review and Improve Your Malpractice Coverage
California physicians are entering a new era of malpractice risk. The decisions you make now—about your coverage, your carrier, and your legal preparedness—will shape your future.
CAP is here to help. We don’t just provide liability coverage—we deliver peace of mind, proactive support, and a trusted partnership with independent physicians.
- Call: 800-356-5672
- Email: MD@CAPphysicians.com
- Get an Instant Quote
Frequently Asked Questions (FAQ)
Q: What is AB 35 and how does it affect malpractice insurance in California?
A: AB 35 increases noneconomic damage caps and expands attorney fee structures, raising liability exposure for physicians.
Q: Is medical malpractice insurance mandatory in California?
A: While not legally mandated, malpractice insurance is required for hospital privileges, health plan contracts, and most medical leases.
Q: What makes CAP different from other malpractice insurance providers?
A: CAP offers physician-focused coverage through its Mutual Protection Trust, with personalized risk management, HR & practice management resources and 24/7 incident response.
Medical professional liability coverage is provided to CAP members through the Mutual Protection Trust (MPT), an unincorporated interindemnity arrangement under Section 1280.7 of the California Insurance Code. Members pay assessments based on risk classifications to cover claims and administrative costs. Initial Trust Deposits are refundable per MPT Agreement terms.