Malpractice insurance

Malpractice Insurance

Malpractice insurance is a type of professional liability insurance purchased by healthcare professionals (and sometimes by other types of professionals, such as lawyers). This insurance helps protect professionals against potential negligence claims made by their patients/clients.

Overview

Professional liability insurance (PLI), also called professional indemnity insurance (PII) but more commonly known as malpractice insurance, is a form of liability insurance that helps protect professional advice- and service-providing individuals and companies from bearing the full cost of defending against a negligence claim made by a client, and damages awarded in such a civil lawsuit.

Types of Malpractice Insurance

There are two basic types of malpractice insurance: Occurrence malpractice insurance and Claims-made malpractice insurance. Occurrence malpractice insurance covers any incident that occurs while the policy is in effect, regardless of when the incident is reported. Claims-made malpractice insurance covers any claim made while the policy is in effect.

Cost of Malpractice Insurance

The cost of malpractice insurance varies greatly and depends on the professional's specialty, where they are located, the amount of coverage needed, and the insurance company.

Malpractice Insurance in Different Professions

While malpractice insurance is most commonly associated with the medical field, it is also used in other professions. For example, legal malpractice insurance is used by lawyers to cover their potential negligence and errors, while real estate brokers and insurance agents may also carry malpractice insurance.

See Also

• Professional liability insurance
• Errors and omissions insurance
• Medical malpractice
• Legal malpractice