Decoding Medical Malpractice Insurance: Insider Insights

David Cribb | Jan 17, 2024 | minute read

Medical MalpracticeSimilar to legal malpractice suits, uncovered medical malpractice can pull individuals and businesses into serious financial loss, potentially jeopardizing their company.

For doctors and other medical professionals who run their own small clinics and owners of medium and large-scale clinics and hospitals, pitfalls abound. The medical field is rife with concerns on the side of both doctors and patients and unexpected outcomes are sometimes inevitable.

While good healthcare professionals are always working to prioritize the patient’s needs and restore their health the best they can, patients and their families don’t always see it this way. Especially when things don’t turn out as they expected.

When questions surrounding medical malpractice unavoidably arise, you want to be 100% covered so that one (or more) medical malpractice lawsuits don’t sink your business and you can continue providing medical services to your customers.

In the end, you aim to practice medicine, and medical malpractice insurance ensures you can continue to do so when things go sideways.


What is Medical Malpractice Insurance?

Medical malpractice insurance is a type of professional liability insurance that gives coverage to medical professionals for liability concerning specific services that resulted in patients' injury or death.

In other words, it protects doctors and medical professionals from financial loss due to lawsuits and allegations of negligence. Examples of medical malpractice include (but are not limited to):

  • Misdiagnosis or failure to diagnose
  • Ignoring or misreading lab results
  • Improper medication or dosage
  • Unnecessary surgery
  • Surgical errors
  • Premature discharge
  • Poor aftercare
  • Disregarding patient history
  • Failure to recognize symptoms


Why is Medical Malpractice Insurance Important?

More than half of all doctors in the U.S. have faced medical malpractice lawsuits, and many of these doctors that have been sued, have been sued more than once.

Not only is this type of insurance vital to prevent significant financial loss (or the loss of your practice) but it’s also required by law in most states. All medical professionals should have medical malpractice insurance whether or not they live in a state that requires it.

Without medical malpractice insurance, lawsuits may require doctors to pay for these expenses out of their own pocket, plus they could be held personally liable for any judgments or settlements that result from the lawsuit.

Medical Malpractice


Who Needs Medical Malpractice Insurance?

Every healthcare provider should have medical malpractice insurance, including:

  • Physicians
  • Physician assistants
  • Nurses
  • Nurse Practitioners
  • Dentists
  • Pharmacists
  • Optometrists
  • Physical therapists
  • Podiatrists
  • Group practices
  • Hospitals

Simply put, if you practice medicine and have patients, you’re at risk of a lawsuit. Whenever a medical practitioner provides treatment, there’s always a chance of the treatment causing an unplanned result, be it injury or death.

Medical malpractice also applies to psychologists and lawsuits can arise from disputed diagnoses, prescriptions, treatment, or suicide of a patient.


Medical Malpractice Coverage

Medical malpractice insurance covers an assortment of expenses that arise from defending and settling malpractice lawsuits. If you’re found liable, it will also cover the damages.

Medical malpractice coverage includes:

  • Defense attorneys’ fees
  • Court costs
  • Settlement and judgment costs
  • Arbitration costs
  • Medical damages
  • Compensatory and punitive damages

This coverage is indispensable if you or your practice ever faces malpractice lawsuits. If and when that time comes, you’ll be covered for these expenses rather than fighting to stay afloat amid the climbing expenses.

Medical malpractice does not cover liability from:

  • Criminal acts
  • Sexual misconduct
  • Alteration of medical records


How LCK Insurance Agency Can Help

At Leap | Carpenter | Kemps Insurance Agency, our friendly and experienced agents can help all medical practitioners discuss and choose the right policy that suits you and your practice, no matter the size of the business.

We’ll advise you on the best coverage specific to you and your practice, so you won’t pay more than you have to, but you’ll still be covered in the case any malpractice lawsuits are brought against you.

Contact us today to start the process of protecting you and your practice from malpractice lawsuits.

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About The Author

Dave Cribb, the Chief Operations Officer of LCK, has an extensive background in management and sales in the financial sector.

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