Medical malpractice insurance is a form of errors and omissions (E&O) insurance coverage designed for physicians and healthcare professionals. The policy provides coverage for liability arising from disputed services that result in a patient’s injury or death and is required by law in most states.
Medical malpractice insurance is often carried by physicians to protect against certain liability claims and damages such as injury and medical negligence. Other medical professionals including nurses, physical therapists, dentists, psychologists, pharmacists, and optometrists also carry the coverage.
Your professional licensing authority may require that you carry medical malpractice insurance and set any minimum coverage levels. The cost of coverage can depend on factors including professional specialty, years of experience, frequency of work, and any previous claims filed against the insured.
Medical Malpractice Insurance will not cover claims of sexual misconduct, reckless or intentional conduct, or illegal acts. A policy may be voided if there is a material misrepresentation of facts made when applying for a policy.
Two Types of Coverage
There are two types of malpractice insurance policy – claims-made and occurrence-based.
Claims-made policies provide coverage for incidents that both take place and are reported while the insurance policy is in effect. Incidents and claims made outside the policy period are not included. Additional policies are available to protect a practitioner against claims for incidences that occurred before or after the current claims-made policy is in effect. This could be important when changing insurance carriers.
Occurrence-based coverage covers incidences that happened while the policy was in effect, regardless of when the claim was filed. As long as the incident on which a claim is based occurred while the policy was in effect, the practitioner is covered, even if a claim is made after coverage lapsed or ended.
Medical professionals often seek malpractice insurance coverage for themselves as individuals, as well as for their business entity (corporation, partnership, limited liability company), and their employees.
To learn more about medical malpractice and other types of business insurance available through Enterprise Insurance Services* we invite you to contact us at 978-656-5594 or 877-671-2265.
*All insurance policies offered by Enterprise Insurance Services are placed through our partner, HUB International NE, LLC.
Insurance products are not a deposit, not guaranteed by Enterprise Bank, are not FDIC Insured, not Insured by any government agency, and may lose value.