Medical malpractice insurance is a type of professional liability insurance that protects licensed healthcare providers, such as nurses, physicians, and dentists, from liability associated with malpractice, or wrongful practice that results in medical expenses, bodily injury, or property damage. This insurance also protects these providers from the associated legal fees that result from defending lawsuits related to these claims.
There are three primary choices for medical malpractice insurance:
- Occurrence: covers events that occurred when the coverage was in full effect, even if the policy expired before the claim was made.
- Claims-Made: only covers claims made during the policy period
- Tail Insurance: covers claims that would not be covered by claims-made insurance because insurance companies were switched between the incident and claim. Providers often purchase this insurance when switching from a claims-made plan to a different plan.