Indiana malpractice insurance rates are cheaper than most states. The reason they are able to keep the rates low is because they cap the amount that can be awarded in a lawsuit. At the time of this writing malpractice awards could not exceed $1.25 Million in the state of Indiana. They set up a pool that is used to help insurance companies whose lawsuit payouts are greater than state set limits.
Participation for carriers in the state pool is not required. However, if carriers choose to participate, they will benefit from the cap in the event of any claims made. The limit set on carriers is currently $250,000. The state makes up the difference, i.e., $1 Million. These limits and caps make it possible for carriers to offer insurance at reasonable rates and it serves to keep the rates low.
Critics of state caps argue that there are plenty of instances where injuries resulting from medical mistakes have caused a lifetime of medical care for the injured. The $1.25 million will not even come close to covering what will be needed in that lifetime. These are valid points to be sure, but more often than not, the lawyers have to most to gain when no caps exist.
Although not perfect, Indiana malpractice insurance is thought to be a success in keeping insurance rates low.