If you provide services or advice to clients or patients, malpractice insurance is a crucial type of business insurance to have. Here’s what you need to know about this special type of insurance and how it can be used.
What is Malpractice Insurance?
Malpractice insurance is a type of business insurance — professional liability insurance, specifically — that offers protections to professionals in the healthcare, legal and other industries.
Malpractice Insurance Explained
Malpractice insurance is a type of professional liability insurance that is specifically designed for professionals who could face claims of negligence. This type of insurance is necessary for many practices — like doctors’ offices and law firms — because it offers protection against patients who file a lawsuit against them.
Specifically, it offers protection if a patient files a lawsuit claiming they were harmed by a professional’s negligence, including intentionally harmful treatment from healthcare professionals. It can also offer protection if a patient’s family files a lawsuit claiming negligence or intentionally harmful treatment following the patient’s death.
Professional Liability Insurance
Professional liability insurance is a type of business insurance that provides coverage for professionals and businesses who provide a service. Several industries can use this type of insurance, including healthcare, beauty professionals, lawyers and accountants.
In general, professional liability insurance usually covers several types of claims, including negligence, personal injury and copyright infringement. These protections extend to things that a professional has done as well as things a customer claims should have been done.
How to Compare Professional Liability Insurance
When you’re looking into purchasing any insurance plan, the first thing you should do is get free quotes online. A quote comparison site like CoverWallet is great for this, but you can also go to individual insurance providers’ websites to receive a quote directly from the company.
Next, you’ll want to consider each insurance company as well as your preferences. Do you want to work with a large company that provides several types of insurance? This could be convenient if you already work with a company for personal and auto insurance and want to get business insurance from it as well. You also might want to consider purchasing a malpractice insurance policy from a company that specializes in that type of insurance. It’s also a good idea to make sure the company is familiar with your industry or profession.
Once you’ve identified a few companies you’d like to compare, you can start to look at the coverage options each offers. Your quotes should include coverage amounts as well as the price for your insurance premium. It’s important to keep in mind that your insurance premium will be based on a number of factors, including your business location, claims history and the size of your business.
Raising or lowering your coverage amounts could also alter the cost of your insurance policy. You’ll want to be sure you’re purchasing a policy with a coverage amount that can provide the appropriate amount of protection for your business. Your quote will most likely have a suggested amount listed, but you can usually speak with a customer service agent if you want assistance choosing a coverage amount.
How to Buy Professional Liability Insurance
To purchase malpractice insurance or any other type of professional liability insurance, you have a few options. The most common way to purchase a policy is to get a quote and complete the purchase process with your preferred insurance provider. This can usually be done online within just a few minutes. If you prefer, you might be able to call the insurance company to complete your purchase over the phone.
In some cases, you may be able to obtain malpractice insurance through your employer or through medical risk retention groups. But if you want to purchase an individual policy or a policy that will cover your entire business, purchasing directly from the company is the way to go.
Protect Yourself with Malpractice Insurance
Malpractice insurance is an important coverage option for many businesses that offer professional services. By offering services that could impact sensitive topics like health and finances, you take on a higher level of risk than some other professions might. For this reason, you need malpractice insurance to help protect you if a customer or patient claims you caused them harm purposefully or as a result of negligence. To find a malpractice insurance policy that works for you, you can get multiple insurance quotes to compare your options.
Frequently Asked Questions
Who needs malpractice insurance?
Several industries could benefit from a malpractice insurance policy. These include the financial industry, healthcare industry, legal industry and real estate industry.
What does malpractice insurance actually cover?
Malpractice insurance covers claims that accuse you of negligence or purposefully harmful behavior or advice. For example, if a customer files a lawsuit against their investment agent because they feel they did not give them proper advice, the investment agent could file a claim with their malpractice insurance company. Malpractice insurance covers claims of behavior that actually occurred as well as alleged errors. It can also cover the cost of legal defense against the lawsuit.