Malpractice Insurance is a type of professional liability insurance coverage for an array of medical and legal occupations. This insurance coverage pays for the defense of the insured in lawsuits (whether or not the insured was at fault) and levied damages up to a specified limit. In most states, professional practitioners such as attorneys and doctors are strongly encouraged or required by law to carry malpractice insurance
Malpractice Insurance is available to most professionals, including, but not limited to, accountants, attorneys, architects, counselors, consultants, dentists, doctors, engineers, fitness professionals, health care professionals, hospitals, lawyers, nursing professionals, orthodontists, physical occupational therapists, pharmacists, physician assistants, psychologists, psychiatrists, social workers, students, surgeons and therapists are also eligible for it.
Malpractice Insurance is typically one of the most expensive types of insurance policies that is purchased. It is purchased to financially cover professionals if they are sued for malpractice by their client; it is mainly designed to provide protection from lawsuits. Premiums are adjusted for the type of physician’s specialty, the type and amount of coverage needed, and whether the insurance covers an individual or a group. Location of the practice and the laws prevailing are other circumstances that affect the premiums of malpractice insurance Premiums are not based on claims experience. Even if a professional has never been sued before, they can still end up paying extremely high premiums. The premiums can become high because of factors such as amount of coverage needed, claims severity, claims frequency, location of practice and laws in the area.
Malpractice Insurance vs. General Liability Insurance
General Liability Insurance is usually limited to physical injuries, such as property damage or bodily injuries, and does not cover intangible injuries. If a professional damages a client’s property, General Liability Insurance will cover the damage. However, if a professional causes the client to suffer intangible damages, such as emotional or financial loss, the General Liability Insurance will not cover it. Unlike General Liability Insurance, Malpractice Insurance covers those intangible damages. Malpractice Insurance also covers damages resulting from negligence.
For more information about Malpractice Insurance contact Health Insurance Specialists Inc at 301.590.0006.