Malpractice Insurance
for Allied Health, Fitness, Mental Health and Medical Professionals

For healthcare professionals, the risks you face day in and day out in your line of work can actually become a matter of life and death. When you are responsible for helping your patients become healthy or maintain their health, your course of action is ripe with uncertainty. No matter the wealth of your experience, unpredictable reactions and complications arise — and often, logic is not the main factor when others decide where to place their blame.

To protect your healthcare business, you will strongly want to consider Malpractice Insurance, also referred to as Errors & Omissions or Professional Liability coverage. Your Malpractice Insurance coverage takes effect when a lawsuit is brought against you or one of your employees for causing a financial or physical loss to a patient. Similar to General Liability coverage, your Malpractice policy typically covers attorney's fees, court costs, and any judgments awarded, up to your policy limits.

Keep reading to learn more about Malpractice or Professional Liability Insurance and how this coverage protects your healthcare practice.

Protecting Healthcare Professionals

Malpractice Insurance: Protecting Healthcare Professionals

Healthcare professionals are all too aware that a single mistake or oversight in their treatment could lead to injury, illness, or even death of a patient. And in today's litigious environment, it doesn't take much for a person to turn to lawsuits to resolve an issue. For these reasons, any healthcare professional who desires to safeguard their business from financial devastation should consider the benefits of Malpractice coverage.

You may have decades of experience in your field and have never been sued, but whenever you work with treating patients, there's always risk that they could decide to sue your business. Most of the time, these cases are not a reflection of your services so much as they are a way for your patient to air grievances of conditions outside of their control.

If someone files a lawsuit against your business alleging that your advice or treatment directly contributed to their financial loss or bodily injury, your Malpractice Insurance will cover the costs of defending your practice in court. A patient could sue if they feel your practice failed to provide promised services, exhibited negligence while performing services, or made mistakes and oversights while the patient was in your care.

Because court costs can quickly exceed hundreds of thousands of dollars in a malpractice suit, many healthcare professionals consider Malpractice Insurance a necessary measure in their overall risk management plan. When this policy is in place, you have the peace of mind that the legal costs associated with defending your business, including attorney's fees, docket costs, and any settlements or judgments you're found to be liable for will be covered.

Even if your practice is ultimately not responsible for the allegations brought against it, your insurance will still cover the costs associated with defending the claim. Depending on your policy, you may also receive compensation for the revenue lost while you were defending your practice in court.

Key Details

Malpractice Insurance for Healthcare Professionals: Key Details

While shopping for a Malpractice policy, remember you can ask your insureon agent for assistance at any point. Even if your business is considered "high-risk" and is struggling to find insurance coverage, when you work with insureon, you benefit from the longstanding relationships we've built with top-rated insurance providers over the years. This means we are often able to find coverage for your healthcare business even when others cannot.

Take a look at the following coverage types and considerations you'll want to keep in mind as you look for a Malpractice Insurance policy for your business.

Claims-Made Coverage

When you delve into the world of Malpractice Insurance, you'll find references to "claims-made" coverage. Most policies today will only offer this kind of coverage, which is built around these two conditions:

  • Your policy must be active when the alleged incident occurs.
  • Your policy must still be active when the claim is filed.

These conditions are the reason why healthcare professionals tend to invest in a Malpractice policy and keep it for the duration of their business's life. If you already have a Malpractice policy and you want to switch to a new provider, you'll want to make sure to purchase limited coverage for the transition period because once your policy has been terminated, coverage no longer exists. An Extended Reporting Endorsement (known as a "tail") can be purchased so your business can file a claim during this interim period when your policy is no longer active.

Occurrence Coverage

As opposed to the claims-made type of coverage, occurrence coverage covers any incident that occurred within the life of your Malpractice policy, even if the suit is filed long after the policy has expired. Few policies will offer this kind of coverage, though, due to a need for rate consistency in the Malpractice Insurance market.

Tails and Prior Acts for Coverage Gaps

If you decide to terminate coverage offered by one insurance provider in favor of another policy, you could expose your business to serious gaps in your business protection coverage. To keep your business protected at all times, you may want to look into purchasing "tail" coverage or "prior acts" coverage. Tail coverage allows you to continue to report claims after your policy has been terminated. Prior acts coverage protects you retroactively for those events that may have already taken place but have yet to be reported. Another option is to purchase individual coverage that will follow you through any job change. Ask your insureon agent about which option is optimal for your business needs.

Coverage Limits and Deductibles

Malpractice Insurance can generally be purchased in increments of $1 million. Deductibles are the amount you will be responsible for paying in the event of a covered claim. In some cases, they can be as low as $1,000 and as high as $25,000.

The limits of an insurance policy indicate the amount of coverage provided. In most policies, you'll find two amounts listed for its limits: per occurrence and overall aggregate. Per occurrence is the amount your insurance will cover per incident. Overall aggregate refers to the total your policy will cover during the policy period. For example, a $1,000,000/$3,000,000 policy will pay up to $1,000,000 per incident during the policy period. $3,000,000 is the maximum amount of total coverage offered during the same policy period.

Find a Malpractice Policy

Find a Malpractice Policy for Your Healthcare Business

At insureon, we know each business comes with a unique set of risks and insurance needs. That's why we offer custom-made policies that your healthcare business can rely on when unexpected lawsuits occur. If you're ready to begin protecting your business, complete our easy online application in minutes. In some cases, we can take you from quote to bind in less than 24 hours!

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