Medical Liability Insurance is a necessary and sometimes costly part of practicing medicine in America. The rates associated with these policies can be considerable and are dictated by a Physician's specialty, claims history and state of practice. State-to-state variations in rates are frequently related to each state's malpractice laws and damage limits. So, if you are looking for a change of locale or are considering starting a new practice, be sure to investigate how these states with the highest insurance rates will affect your bottom line.

States with the Highest Medical Liability Insurance Rates: (Non-Patient Compensation Fund States)*

1. Florida

   ($14,964- $47,707/yr) Claims-Made Coverage
   Florida is a sought after vacation and retirement haven but the price of working as a Physician in paradise can be considerable. Florida has some of the highest medical liability insurances rates in the country. The good news is that rates have taken a downward trend over the last year with Miami and Dade county premiums topping out at $47,707 a year.

2. Illinois

   ($14,310- $41,680/yr) Claims-Made Coverage
   Physicians wanting to practice in the 2016 World Series winning Cubs hometown should plan on spending extra money on insurance. Some of the highest medical liability rates in the country can be found in Illinois. Rate trends here have remained generally static since 2015 with Cook, Madison and St. Clair county insurance rates topping out at $41,680 a year.

3. Connecticut

   ($15,585- $34,700/yr) Claims-Made Coverage
   Connecticut may be small in size but it's large on medical liability insurance rates. Despite its smaller population, this state has notably elevated insurance rates and no caps on malpractice damages. Rate trends in Connecticut have been relatively static since 2015 with no remarkable changes being reported.

4. New York

   ($6,782- $36,484/yr) Occurrence Coverage
   The Big Apple has a lot to offer in the way of restaurants and entertainment, but when it comes to paying for insurance premiums and cost of living it can hit a Physician's wallet hard. Nassau and Suffolk counties have the state's highest rates topping out at $36,484 a year while more rural New York locales enjoy premiums starting at $6,782 a year. This state is also notable for not having a cap on malpractice damage awards.

States with the Highest Medical Liability Insurance Rates: (Non-Patient Compensation Fund States)*

1. Pennsylvania

   ($10,663- $20,698/yr) Claims Made Coverage
   Pennsylvania is a Patient Compensation Fund State that chips in to cover the second half of providers liability policies. This fund provides an additional $500,000/$ 1.5 million to liability policies. While the rates can be lower for outlying areas, larger cities like Philadelphia account for the highest insurance rates in the state.

* Based on the "26th Medical Liability Monitors Annual Rate Survey" comparing a variety of medical liability insurance carriers for each state (most common $1/$3 Million coverage limit) for Internal Medicine Physicians.