THE BILL ITSELF
SB 1596
Medical Malpractice Liability Coverage
Florida Senate - 2026 SB 1596 By Senator Rouson 16-00302-26 20261596__
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A bill to be entitled
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An act relating to medical malpractice liability
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coverage; amending ss. 458.320 and 459.0085, F.S.;
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increasing the minimum amount of professional
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liability coverage certain physicians and osteopathic
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physicians, respectively, are required to maintain as
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a condition of licensure; providing an effective date.
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Be It Enacted by the Legislature of the State of Florida:
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Section 1. Paragraphs (b) and (c) of subsection (2) of
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section 458.320, Florida Statutes, are amended to read:
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458.320 Financial responsibility.—
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(2) Physicians who perform surgery in an ambulatory
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surgical center licensed under chapter 395 and, as a continuing
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condition of hospital staff privileges, physicians who have
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staff privileges must also establish financial responsibility by
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one of the following methods:
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(b) Obtaining and maintaining professional liability
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coverage in an amount not less than $1 million $250,000 per
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claim, with a minimum annual aggregate of not less than $3
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million $750,000 from an authorized insurer as defined under s.
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624.09, from a surplus lines insurer as defined under s.
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626.914(2), from a risk retention group as defined under s.
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627.942, from the Joint Underwriting Association established
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under s. 627.351(4), through a plan of self-insurance as
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provided in s. 627.357, or through a plan of self-insurance
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which meets the conditions specified for satisfying financial
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responsibility in s. 766.110. The required coverage amount set
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forth in this paragraph may not be used for litigation costs or
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attorney attorney’s fees for the defense of any medical
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malpractice claim.
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(c) Obtaining and maintaining an unexpired irrevocable
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letter of credit, established pursuant to chapter 675, in an
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amount not less than $1 million $250,000 per claim, with a
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minimum aggregate availability of credit of not less than $3
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million $750,000 . The letter of credit must be payable to the
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physician as beneficiary upon presentment of a final judgment
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indicating liability and awarding damages to be paid by the
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physician or upon presentment of a settlement agreement signed
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by all parties to such agreement when such final judgment or
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settlement is a result of a claim arising out of the rendering
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of, or the failure to render, medical care and services. The
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letter of credit may not be used for litigation costs or
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attorney attorney’s fees for the defense of any medical
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malpractice claim. The letter of credit must be nonassignable
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and nontransferable. The letter of credit must be issued by any
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bank or savings association organized and existing under the
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laws of this state or any bank or savings association organized
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under the laws of the United States which has its principal
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place of business in this state or has a branch office that is
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authorized under the laws of this state or of the United States
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to receive deposits in this state.
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This subsection shall be inclusive of the coverage in subsection
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(1).
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Section 2. Paragraphs (b) and (c) of subsection (2) of
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section 459.0085, Florida Statutes, are amended to read:
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459.0085 Financial responsibility.—
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(2) Osteopathic physicians who perform surgery in an
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ambulatory surgical center licensed under chapter 395 and, as a
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continuing condition of hospital staff privileges, osteopathic
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physicians who have staff privileges must also establish
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financial responsibility by one of the following methods:
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(b) Obtaining and maintaining professional liability
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coverage in an amount not less than $1 million $250,000 per
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claim, with a minimum annual aggregate of not less than $3
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million $750,000 from an authorized insurer as defined under s.
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624.09, from a surplus lines insurer as defined under s.
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626.914(2), from a risk retention group as defined under s.
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627.942, from the Joint Underwriting Association established
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under s. 627.351(4), through a plan of self-insurance as
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provided in s. 627.357, or through a plan of self-insurance that
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meets the conditions specified for satisfying financial
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responsibility in s. 766.110. The required coverage amount set
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forth in this paragraph may not be used for litigation costs or
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attorney attorney’s fees for the defense of any medical
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malpractice claim.
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(c) Obtaining and maintaining an unexpired, irrevocable
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letter of credit, established pursuant to chapter 675, in an
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amount not less than $1 million $250,000 per claim, with a
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minimum aggregate availability of credit of not less than $3
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million $750,000 . The letter of credit must be payable to the
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osteopathic physician as beneficiary upon presentment of a final
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judgment indicating liability and awarding damages to be paid by
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the osteopathic physician or upon presentment of a settlement
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agreement signed by all parties to such agreement when such
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final judgment or settlement is a result of a claim arising out
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of the rendering of, or the failure to render, medical care and
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services. The letter of credit may not be used for litigation
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costs or attorney attorney’s fees for the defense of any medical
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malpractice claim. The letter of credit must be nonassignable
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and nontransferable. The letter of credit must be issued by any
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bank or savings association organized and existing under the
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laws of this state or any bank or savings association organized
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under the laws of the United States which has its principal
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place of business in this state or has a branch office that is
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authorized under the laws of this state or of the United States
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to receive deposits in this state.
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This subsection shall be inclusive of the coverage in subsection
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(1).
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Section 3. This act shall take effect July 1, 2026.