Malpractice Insurance Definition Types Importance

Malpractice Insurance: Definition, Types, Importance

Malpractice insurance is professional liability insurance purchased by healthcare professionals. This insurance protects healthcare providers against patient suits claiming harm caused by the professional’s negligence or intentionally harmful treatment decisions. It also covers patient deaths.

Key Takeaways:

– Malpractice insurance covers healthcare professionals.

– Patients can file lawsuits seeking damages for medical negligence resulting in further health problems or death.

– Medical negligence is the third leading cause of death in the United States.

– Malpractice insurance can be obtained through private insurers, employers, or organizations like medical risk retention groups (RRGs).

– There are two types of professional liability insurance: claims-made policies and occurrence policies.

– Malpractice insurance covers legal costs, punitive damages, and medical damages.

Understanding Malpractice Insurance

Medical doctors will likely need malpractice insurance during their careers. A study by Johns Hopkins University found that medical errors are the third leading cause of death in the United States. Medical negligence can occur during diagnosis, treatment, or post-illness advice. Approximately 250,000 deaths in the U.S. result from medical errors annually.

Government data shows that about 10,800 medical malpractice claims were paid in 2022. Nearly one third of physicians report being sued at least once. This underscores the importance of malpractice insurance for healthcare professionals.

Malpractice insurance requirements vary by state, with some states mandating insurance or a minimum coverage amount to participate in state programs.

Medical malpractice insurance premiums are based on specialty and geographic location, not claims experience. Even physicians who have never been sued may pay high premiums due to factors like coverage needed, claims severity and frequency, practice location, and local laws.

Types of Malpractice Insurance

Malpractice insurance can be obtained through various options. Private insurers offer individual or group policies. Medical risk retention groups (RRGs) formed by medical professionals also provide coverage. Employers, like hospitals, may offer insurance as part of their coverage plan.

Workers in federal health centers are immune to civil lawsuits, eliminating the need for malpractice insurance. State and local agencies may provide insurance when necessary.

The two policy types are claims-made and occurrence. Claims-made policies cover claims if the treatment occurred and the lawsuit was made while the policy was in effect. Occurrence policies cover any claim made on a treatment that occurred while the policy was active, even if it has since expired.

Malpractice policies cover a wide range of costs, including legal fees, medical damages, and punitive damages.

Proving a Malpractice Lawsuit

In a medical malpractice lawsuit, the plaintiff must prove that a medical professional violated the general standard of care defined by the medical community. To succeed, three things generally need to occur:

1. The plaintiff’s attorney must prove a breach of medical protocol that led the practitioner to choose a different course of action than a colleague would have taken.

2. The medical professional must have caused physical or emotional injury.

3. There must be sufficient evidence proving the medical professional caused the damage.