Malpractice insurance, also known as professional liability insurance, is a specific type of insurance coverage designed to protect professionals, particularly those in the medical and legal fields, against liability incurred as a result of errors and omissions in performing their professional services. This insurance typically covers the cost of defending lawsuits related to professional misconduct or lack of expected skills, and any damages awarded in such suits.
Under malpractice insurance, coverage generally includes legal fees, settlements, and any judgments or fines levied against the professional. The policy is crucial for healthcare providers, including doctors, nurses, and dentists, as well as lawyers, who can potentially face claims of negligence or harm due to their professional advice or services. Malpractice claims can arise from misdiagnosis, incorrect treatment, surgical errors, medication errors, and various other instances where a professional’s conduct falls below the accepted standard of practice and causes injury or damage to a client or patient.
The insurance is designed to ensure that professionals have the financial support necessary to continue their practice while dealing with the legal repercussions of claims made against them. It also provides a level of trust and security for clients and patients, knowing that there is a system in place to compensate them if they are harmed due to professional negligence. Malpractice insurance policies can vary greatly in terms of coverage limits, deductibles, and exclusions, and they are often mandated by law or professional associations.