Does the IMLC Directly Lower Your Malpractice Premium?
No, holding a license through the Interstate Medical Licensure Compact (IMLC) doesn’t directly reduce your premium. However, it can influence how underwriters assess your risk — especially if you’re using multistate licensure strategically and within your scope.
How Malpractice Carriers View Multi-State Licensure
From an insurer’s perspective, the number of licenses you hold isn’t as important as:
- Where your patients are located
- Whether you're seeing patients in high-risk states (e.g., New York, Florida)
- How many patients you’re seeing in each jurisdiction
- Your claim history, specialty, and care modality (in-person vs. virtual)
That said, some carriers view compact physicians as lower risk due to the IMLC’s vetting standards (board certification, clean history, etc.).
What About Telemedicine Coverage?
Most malpractice policies require that each licensed state be listed on your declarations page. If you’re seeing patients across state lines — even virtually — your coverage must explicitly name each state. The IMLC makes it easier to get those licenses, but you still need to update your policy.
Does the IMLC Help With Risk Pooling?
Not directly, but being licensed in multiple compact states can support:
- Negotiation with national carriers
- Eligibility for multi-state or enterprise coverage plans
- Stronger positioning for employer-sponsored or group policies
For example, telehealth platforms often negotiate better rates for compact-licensed providers with no state gaps.
High-Risk vs. Low-Risk States
Premiums vary dramatically by geography. Insurers may raise your premium if you’re licensed in or serve patients in:
- Florida
- New York
- Illinois
- California (not IMLC)
Conversely, serving low-risk or rural states through the IMLC might help reduce your average exposure, depending on how your patient volume is distributed.
What If You Have 10+ Licenses?
Malpractice carriers will still evaluate your actual patient exposure — not just how many licenses you have. If 90% of your work happens in one state, and the others are for future growth or flexibility, they’ll likely rate you accordingly. Be transparent about your practice footprint.
Should You Work With a Broker?
Yes. Malpractice brokers who understand multistate and virtual care models can:
- Match you with national or compact-aware carriers
- Help you avoid overpaying for states you’re not actively practicing in
- Adjust your limits based on volume, not just location
This is especially important if you're expanding rapidly or working across multiple platforms.
Final Thoughts
The IMLC itself doesn’t guarantee lower malpractice premiums — but it supports a risk-aware, scalable practice model that insurers can work with. The key is to stay compliant, report your coverage needs clearly, and make sure your licensure footprint matches your actual scope of work.