What is professional liability insurance in the medical profession?

Professional liability insurance, also known as malpractice insurance, protects medical professionals (such as doctors, nurses, and other healthcare providers) from financial losses due to claims arising from allegations of professional negligence, malpractice, or errors in the provision of medical services.

Coverage:

* Acts or Omissions: Covers liabilities resulting from negligent acts, omissions, or mistakes in the delivery of medical services.

* Patient Injuries: Protects against claims alleging patient harm or injuries caused by the insured professional's actions or decisions.

* Claims Expenses: Covers legal expenses, defense costs, and settlements (up to policy limits) related to malpractice claims.

* Consent: If a claim arises from the patient's lack of informed consent for a medical procedure, the policy may provide coverage.

Policy Options:

* Claims-Made Policy: Coverage applies to claims reported during the policy period, regardless of when the incident occurred.

* Occurrence Policy: Coverage applies to incidents that occur during the policy period, even if the claim is made after the policy expires.

Tail Coverage:

When a medical professional retires or leaves the practice, they may purchase tail coverage to extend their professional liability coverage beyond the policy period's end. This ensures ongoing protection for incidents that occurred during the time of active practice.

Importance:

Professional liability insurance plays a crucial role in protecting medical professionals and their practices by safeguarding against financial risks and ensuring peace of mind. It also assists in covering legal expenses and defending against claims, allowing medical professionals to focus on providing patient care without undue financial concerns.