Every medical professional faces risks in opening a practice and providing advice to patients. A key component of business insurance for this practice is professional liability insurance. Designed for all types of practices in all areas of medical care, this type of insurance protects the individual from claims related to providing advice or guidance to another person. Negligence is not something that most doctors worry about – they do whatever it takes to keep their patients healthy. Yet, claims of negligence are quite common.


What Protection Does This Business Liability Insurance Cover?


Professional liability insurance specifically covers an individual named on the policy for claims made against him or her in relation to the advice and service provided. Often, this will apply to situations where a patient files a claim against the doctor for a mistake or a potential misunderstanding. The insurance provides:

  • Coverage for any settlements handled outside of court
  • Coverage for the policyholder’s legal defense in a court of law and outside of it
  • Any judgments and settlements from such legal actions

Because it is so comprehensive, every medical provider should obtain this coverage for their specific risk needs. Even in the most well-run practice, errors can occur and claims, even those that are proven to be false, need legal defense.

Updating and Monitoring Coverage

Professional liability insurance isn’t set in stone year after year. It is essential to take a closer look at this general liability insurance and professional liability coverage on an annual basis. Update the policy to reflect current claims or previous claims. Because these policies do have a limit to coverage, many organizations need to expand coverage over time as the practice and risks grow.

Simply, you need professional liability insurance to help support your practice. It gives you the peace of mind you need so you can continue to meet your patients’ needs without worrying about the consequences of doing so. Update your policy at least annually to ensure it properly reflects your current needs and risks. Doing so saves you money should a high-end claim occur done the road.