With over a decade of experience as a personal finance writer, Jackie Lam simplifies complex financial topics for consumers who want to improve their financial situations, develop a healthy relationship with money, and work toward their goals. Her wo.
Jackie Lam AFC®, Insurance WriterWith over a decade of experience as a personal finance writer, Jackie Lam simplifies complex financial topics for consumers who want to improve their financial situations, develop a healthy relationship with money, and work toward their goals. Her wo.
Written By Jackie Lam AFC®, Insurance WriterWith over a decade of experience as a personal finance writer, Jackie Lam simplifies complex financial topics for consumers who want to improve their financial situations, develop a healthy relationship with money, and work toward their goals. Her wo.
Jackie Lam AFC®, Insurance WriterWith over a decade of experience as a personal finance writer, Jackie Lam simplifies complex financial topics for consumers who want to improve their financial situations, develop a healthy relationship with money, and work toward their goals. Her wo.
AFC®, Insurance Writer Jason Metz Lead Editor, InsuranceAs a former claims handler and fraud investigator, Jason Metz has worked on a multitude of complex and multifaceted claims. The insurance industry can be seemingly opaque, and Jason enjoys breaking down confusing terms and products to help others mak.
Jason Metz Lead Editor, InsuranceAs a former claims handler and fraud investigator, Jason Metz has worked on a multitude of complex and multifaceted claims. The insurance industry can be seemingly opaque, and Jason enjoys breaking down confusing terms and products to help others mak.
Jason Metz Lead Editor, InsuranceAs a former claims handler and fraud investigator, Jason Metz has worked on a multitude of complex and multifaceted claims. The insurance industry can be seemingly opaque, and Jason enjoys breaking down confusing terms and products to help others mak.
Jason Metz Lead Editor, InsuranceAs a former claims handler and fraud investigator, Jason Metz has worked on a multitude of complex and multifaceted claims. The insurance industry can be seemingly opaque, and Jason enjoys breaking down confusing terms and products to help others mak.
| Lead Editor, Insurance
Updated: Oct 25, 2022, 7:00am
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There are more than 22 million workers in the health care industry, according to the most recent data from the U.S. Census Bureau. That includes professionals such as surgeons, doctor’s assistants and health technicians. But no matter how meticulous you are as a health care professional, mistakes can happen, which could lead to a lawsuit filed against you, even if the suit has no merit.
If your business provides health-related services, such as nursing, nutrition and dietary advice, physical therapy, or renting and selling medical equipment, you’ll most likely need medical malpractice insurance. It can help pay for your legal defense in case you are sued for claims of injury or death.
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Medical malpractice insurance is a specialized form of business insurance for health care professionals. It’s also called “medical professional errors and omissions insurance.” Medical malpractice insurance covers claims of services that result in a patient’s injury or death.
There are two basic types of medical malpractice insurance:
Medical malpractice insurance covers professionals for claims such as:
It covers expenses associated with defending and settling claims, including:
Your medical malpractice policy will cover you up to your policy’s limits. Your policy limits might be written as two numbers, such as $1 million/$3 million. Here’s what those numbers mean:
Here are some common exclusions to a professional liability insurance policy:
Medical professionals such as doctors, home health care providers, nurses and physical therapists may be required to have medical malpractice insurance by:
Even if you are not required to have medical malpractice insurance, it’s worth considering if your business does one or more of the following:
Here are examples of professions who could benefit from medical malpractice insurance:
Medical malpractice insurance is a form of professional liability insurance, also known as errors and omissions insurance. And while these terms might be used interchangeably, there is a key difference.
For example, if a patient claims that your treatment resulted in pain or additional medical care, that would fall under your medical malpractice insurance. But if a patient accused you of violating their privacy under the Health Insurance Portability and Accountability Act (HIPAA), that would likely be covered by professional liability insurance.
General liability insurance covers injuries and property damage you accidentally cause to others.
Here’s an example to differentiate between the two.
Say you’re a chiropractor who has your own private practice. If a patient slips on a wet floor in your office and gets hurt, their medical expenses are covered under your general liability insurance.
But if a patient claims your chiropractic treatment resulted in injuries, your medical malpractice insurance will cover the cost of your legal defense, including any judgments or settlements.
Before you start shopping around for a policy, see if your employer has medical malpractice insurance for its staff. Alternatively, your workplace might offer discounted group insurance.
But even if your workplace offers medical malpractice insurance, you may want to consider getting your own policy. Here are some examples of claims your employer’s policy may not cover:
Medical malpractice insurance policies can range from $100,000 per occurrence and $300,000 per year to $1 million per occurrence and $3 million per year. It’s a good idea to speak with an insurance agent who can help you match the coverage amount to the amount of risk that your profession faces. For example, a surgeon faces more risk of an expensive lawsuit than a dietician.
Some states cap the amount of damages that can be awarded. For example, in California, a medical malpractice case is capped at $350,000 if it does not involve wrongful death. If your state has a cap, you may not need to buy a policy with limits that exceed the cap.
Get several quotes from different insurance companies to zero in on a good price.
If you already have a business owners policy, make sure you get a quote for how much it will cost to add medical malpractice insurance to your existing policy. It’s often cheaper to bundle coverage types with the same company compared to buying standalone policies from different companies.
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AFC®, Insurance WriterWith over a decade of experience as a personal finance writer, Jackie Lam simplifies complex financial topics for consumers who want to improve their financial situations, develop a healthy relationship with money, and work toward their goals. Her work has been featured by Fortune 500 companies, fintech startups and national personal finance brands such as Business Insider.
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