Professional liability / medical malpractice insurance for healthcare providers

Healthcare professionals understand the consequences of a mistake or oversight. If a patient, client, or family member files a lawsuit, the resulting legal costs could have a significant financial impact on your business.

While the terms are sometimes used interchangeably, professional liability insurance and medical malpractice insurance cover different types of risks.

Professional liability insurance, also known as errors and omissions (E&O) insurance, protects healthcare professionals against claims that their services caused a client financial loss or failed to meet professional expectations.

Professional liability insurance can also help cover claims involving:

• Failure to uphold contractual obligations
• Incomplete or substandard work
• Missed appointments
• Failure to deliver promised services

Medical malpractice insurance protects healthcare providers against claims that a patient was harmed because of a medical error, omission, or failure to meet the accepted standard of care.

Malpractice insurance can also help cover claims involving:

• Medication errors
• Misdiagnoses
• Failure to monitor a patient
• Failure to refer a patient
• Pain, suffering, or mental anguish allegedly caused by treatment

Depending on your profession and where you practice, professional liability insurance, medical malpractice insurance, or both may be required by state law, employers, healthcare facilities, or client contracts.

It's easy to get free quotes for medical malpractice insurance with Insureon. We'll ask you for basic facts about your business to help you find coverage that matches your unique risks and meets the requirements in your state.

Contact our dedicated medical malpractice insurance specialist to get started.

Even the most experienced healthcare providers can make a mistake or be sued for a claim of substandard care, such as misdiagnoses, surgical errors, and medication errors, as well as violating a patient's privacy.

Professional liability and medical malpractice insurance can help cover the cost of legal defense, including the cost of hiring a lawyer.

Specifically, this type of insurance coverage will help protect your practice from:

Nurses, home healthcare providers, and other healthcare professionals are highly susceptible to claims of negligence. For example, a patient could claim that a nurse’s neglect caused bed sores. If the patient files a lawsuit, professional liability insurance can cover your legal expenses, such as the cost of hiring an attorney.

A physical therapist who offers faulty advice could end up worsening a patient’s condition. If that patient sues and you don’t have proper coverage, you could end up paying for a legal defense with your own assets.

Medical malpractice insurance can cover expenses related to the lawsuit, including a court-ordered judgment or settlement.

Even if a claim is frivolous, an alleged error could still result in a costly lawsuit. For example, a patient could accuse a radiology lab of delaying their paperwork, even if there was no unusual delay. Professional liability insurance can help pay for your legal costs so you can keep practicing despite a lawsuit.

If a customer accused your practice of violating their privacy under the Health Insurance Portability and Accountability Act (HIPAA), it would probably be a covered claim under your professional liability insurance coverage.

Personal liability insurance provides protection in the case of a medical license complaint against a registered nurse (RN), licensed practical nurse (LPN), or other healthcare professional.

This coverage, not included in most employer liability protection plans, pays for an attorney to defend your license, regardless of whether there was any wrongdoing.

Medical malpractice and professional liability insurance can help cover lawsuits related to patient care and professional services, but they don't protect against every risk healthcare providers face. Healthcare businesses may also need coverage for workplace injuries, property damage, cyberattacks, regulatory investigations, and other industry-specific exposures.

Other insurance products and coverage options to consider as part of your risk management plan include:

General liability insurance: This policy can pay for legal defense costs related to patient property damage and accidental injuries, along with advertising injuries such as slander. It's also often required by landlords when signing a commercial lease.

Business owner’s policy: A BOP bundles general liability coverage with commercial property insurance, often at a lower cost than purchasing them as individual policies.

Workers’ compensation insurance: Most states require this coverage for healthcare businesses with employees. Workers’ comp can cover medical expenses for work-related bodily injuries and illnesses.

Commercial auto insurance: State laws require this coverage for vehicles owned by a business. It helps cover accident-related expenses involving business-owned vehicles.

Cyber insurance: Healthcare organizations are frequent targets for cybercriminals due to the sensitive patient information they store. Cyber insurance can help cover data breach response costs, regulatory notifications, ransomware incidents, and other cyber-related expenses.

Beyond the most common policies that healthcare professionals carry, there are additional coverage options to consider as part of your risk management plan, such as:

Professional license defense coverage: Helps cover legal expenses associated with defending your professional license during disciplinary investigations or proceedings.

Biomedical defense coverage: Can help pay for legal costs related to allegations involving the use, handling, or administration of biomedical products and treatments.

HIPAA defense coverage: Helps cover expenses related to investigations and defense costs stemming from alleged violations of patient privacy regulations.

Sexual misconduct defense coverage: Provides financial protection against covered allegations of sexual misconduct and patient safety, and the related legal defense costs.

Telemedicine coverage: Extends malpractice protection to healthcare professionals, including nurse practitioners, who provide virtual consultations and remote patient care services.

Yes. Medical malpractice insurance and general liability insurance cover different risks, so many healthcare professionals carry both policies for broader protection.

Medical malpractice insurance covers claims related to patient care, such as allegations of negligence, treatment mistakes, misdiagnosis, or other professional errors.

General liability insurance covers common business risks that aren't related to medical services, such as a patient slipping and falling at your office or accidental damage to someone else's property.

Even when coverage isn't required by law, healthcare facilities, landlords, and clients may require proof of insurance before you can work with them or sign a contract.

Because each policy covers risks the other doesn't, having both can help protect your healthcare business from a wider range of claims.

Are you ready to safeguard your healthcare company with malpractice insurance or another policy? Complete Insureon’s easy online application today to get quotes from top U.S. insurance companies.

For medical malpractice coverage, you can contact our dedicated insurance agent by sending an email to [email protected] or by calling (312) 854-2919.

Once you find the right policy, you can begin coverage and get peace of mind in less than 24 hours.