How Diagnostic Errors in Office-Based Practices Are Driving Malpractice Costs and Patient Harm

A new white paper from Coverys analyzes five years of closed malpractice claims to uncover the persistent risks of diagnostic errors in office-based healthcare settings. Representing 27% of all claims and accounting for a staggering 42% of indemnity payouts, these errors often stem from breakdowns in evaluation, test interpretation, and follow-up communication.

The data reveals that cancer is the most frequently missed diagnosis, with prostate, lung, breast, and colorectal cancers leading the list. Nearly half of these cases result in high-severity injuries or patient death. Contributing factors include cognitive bias, poor documentation, missed follow-ups on test results, and fragmented care coordination. These insights underscore the importance of strong systems and protocols in even the most routine clinical environments.

Coverys emphasizes that diagnostic accuracy in the office setting is a team responsibility. The white paper includes a detailed self-assessment tool and outlines five action steps—from raising awareness to ongoing adaptation—to help practices close diagnostic gaps and reduce liability exposure. With the average indemnity payment for diagnostic-related events nearly double that of other claims, the cost of inaction is high.

For claims adjusters, risk managers, and insurers, this report highlights the systemic weaknesses and risk drivers that lead to high-value claims in outpatient settings. It’s a data-driven guide to mitigating losses and promoting safer diagnostic practices.