A: The average physician has a medical malpractice insurance policy with a limit of $1.3 Million Dollars per occurrence, with a maximum limit of $3.9 Million Dollars per year. This means that their insurance policy will pay out a maximum of $1.3 million dollars in either a settlement or a judgment. Remember that this is usually the maximum that will be paid under their policy. Many physicians also carry 'excess' insurance which supplements their basic policy. This is similar to an umbrella policy for our car insurance. The excess policies are often under the umbrella of a hospital or other type of health network. Keep in mind that an insurance company will do everything in their power to minimize what they pay out to an injured victim, despite the fact that the physician has the coverage needed to pay full and fair compensation.