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Psychiatry malpractice suits are fewer, but payouts are high
A review of 261 psychiatry claims from 2010 to 2025 found indemnity was paid in 27% of cases, with an average indemnity of $211,000.
Psychiatry may be sued less often than many other medical specialties, but malpractice exposure can still be substantial when claims emerge, according to Insurance Business.
A September malpractice review by The Doctors Company examined 261 psychiatry claims from 2010 to 2025. Medical treatment was the most common major allegation at 43% of cases, followed by medication-related allegations at 28%. The review found an indemnity payment in 27% of claims, with an average indemnity of $211,000 and average gross expenses of $76,000.
The article notes that claim severity stands out against psychiatry’s comparatively low claim rate. American Medical Association analysis using combined 2022 and 2024 survey data found 0.5% of psychiatrists were sued in the prior year, and 9.2% had faced a claim at some point in their careers, compared with 1.8% and 29.7% for all physicians.
Contributing factors differed across cases, with patient behavior cited in 54.41% of claims and clinical judgment in 41%. Communication and documentation were also frequently involved at 37.93% and 23.37% respectively, and claims involving clinical judgment or communication had an average gross indemnity of $261,000. A separate MedPro Group analysis of 299 psychiatry cases opened from 2014 to 2023 found medication-related allegations were 33% of case volume but 47% of total dollars paid, including indemnity and expenses, with improper monitoring and management of a drug regimen involved in 63% of medication cases.