Defense costs in medical liability claims continue to rise as litigation takes longer, expert witness fees increase, outside counsel rates climb and discovery becomes more complex. More aggressive plaintiff strategies are also contributing to higher costs for health care organizations.
“Plaintiffs are more aggressive than ever, and the courts are tougher than ever,” said Lori Semlies, a partner at Wilson Elser Moskowitz Edelman & Dicker and co-chair of the National Health Care Practice Team. “As a result, defendants must not only be more prepared to defend claims but also adopt more creative defense strategies and begin trial preparation earlier to account for changing jury dynamics, even in counties traditionally considered defense friendly.”
Those trends were reflected in the 2026 Medical Liability Benchmark Report from Crittenden Medical Liability, which surveyed health care providers, insurers, brokers and legal professionals nationwide. More than 85% of respondents said defense costs had increased during the past two years, with most describing those increases as moderate.
Few organizations reported stable or declining costs, underscoring that rising litigation expenses are not confined to specific segments but are affecting the market broadly.
Defense costs remain concentrated within a defined range but continue to trend upward across the industry. The largest share of respondents reported average defense costs between $50,000 and $100,000 per claim, followed closely by those reporting costs between $100,000 and $250,000.
A smaller but meaningful share of respondents reported defense costs exceeding $250,000 per claim, underscoring how complex cases can generate substantially higher litigation expenses than the industry benchmark.
Most organizations also reported premium increases at renewal, particularly in the 5% to 10% range, with cumulative increases continuing to build since 2024.
Litigation timelines are another key driver of defense costs. Most respondents said claims are resolved within 18 to 30 months, while a significant share reported resolution periods of 30 to 48 months or longer.
Longer resolution periods increase total legal spending and often lead to higher overall claim costs, even in cases that settle without large indemnity payments.
Survey respondents also pointed to a broader inflationary environment affecting litigation, noting that “everything costs more now,” including legal services, expert witnesses and pretrial resources.
The report suggests defense costs are becoming a primary driver of overall medical liability expense regardless of claim volume. Even cases that do not result in large indemnity payments can generate significant litigation costs, and longer claim resolution timelines continue to compound expenses across medical liability portfolios. As a result, organizations should expect continued pressure on legal budgets and adjust forecasting accordingly.
“Technology is critical in supporting law firms as they address attorney shortages,” Semlies said. “This includes the appropriate use of closed AI platforms and other software tools to advance the administrative side of managing the business.”
