What is Malpractice Insurance

Malpractice insurance is purchased by professionals, most often medical professionals, to financially cover them in the event they are sued for malpractice. Malpractice is the act of causing damage or injury to a person or persons as a result of performing a professional duty or intentional wrongdoing. Doctors, surgeons, nurses, and most other medical professionals must purchase malpractice insurance, sometimes called personal liability insurance, before becoming employed by a facility or opening a private practice. Though the medical field is the most common market for malpractice insurance, other fields may require personal liability or malpractice insurance as well.
Malpractice insurance is designed primarily to provide medical professionals protection from lawsuits, though there are other personal coverages provided with most policies. A malpractice insurance policy will cover the insured up to values of several million dollars. However, the amount of necessary coverage varies from state to state, as different statutes apply to malpractice law in different areas.
When most people think of malpractice insurance, they think of doctors, especially surgeons and obstetricians, who are most frequently sued by patients. Though such doctors may have higher malpractice insurance premiums than others, they aren’t the only ones required to have coverage. Dentists, nurses, therapists, optometrists, and even diagnostic laboratories are required to carry malpractice insurance. Schools that provide education in the medical field with training involving hands-on clinicals must also carry malpractice insurance to cover their faculty and students.
Malpractice insurance is often one of the most expensive types of insurance policies that can be purchased. Premiums are adjusted for the type of medicine practiced, the type and amount of coverage needed, and whether the insurance covers an individual or a group. Other circumstances that affect the premiums of malpractice insurance include the location of the practice and the laws that prevail there. Though the majority of doctors and medical professionals never need to use their malpractice insurance, it is a necessary safety net and is required by law in many locations.