Have you considered what types of insurance you need beyond your business owners policy? In most cases, the coverage you need depends on the type of work you do. Are you a mechanic? You need shop liability insurance. Do you own a bar? You need liquor liability insurance. Are you a medical or legal professional? You need malpractice insurance.
Malpractice insurance falls under the larger umbrella of professional liability insurance. Business owners buy professional liability insurance because their general liability insurance doesn’t cover claims of malpractice, negligence or misrepresentation.
Malpractice insurance isn't just a good idea for professionals. In many states, it's also a legal requirement for attorneys and health care providers.
Beyond medical
Medical professionals include doctors and surgeons, home health care workers, long-term care workers, hospital staff, and chiropractors. These occupations face many obstacles. Malpractice is one of them. In fact, a survey by the Institute for Healthcare Improvement (IHI)/National Patient Safety Foundation (NPSF) found that 21% of adults have experienced a medical error. This can have a lasting effect on a person's emotional, physical and financial well-being.
Medical malpractice lawsuits usually arise from:
- Issues with cosmetic surgeries
- Severe reactions or deaths due to prescribing errors
- Injuries sustained from childbirth
- Diagnosis or surgical errors
- Privacy breaches
While most people associate the word “malpractice” with medical professionals, malpractice suits can be filed against many types of professionals. Attorneys and other legal professionals can face malpractice claims if they are accused of not performing their duties at the level of expected expertise. A claim can arise from:
- Overbilling a client
- Not representing a client properly in court
- Improperly presenting the facts in a case
- Having a conflict of interest
- Not instituting cybersecurity protocols
Other professionals can face malpractice claims as well. For example:
- Financial professionals can be accused of not executing trades or transactions as directed, charging excessive fees, or making improper financial recommendations.
- Stockbrokers can face claims of misleading statements or insider trading.
- Accounting professionals can be accused of negligence, breach of contract or misrepresentation to conceal wrongdoing.
Architects, engineers and other skilled design professionals are also subject to malpractice suits. Faulty design and engineering work associated with a construction project compromises the stability of a building. It can also endanger workers, owners, or inhabitants during and after the construction is finished.
Counselors, psychotherapists and massage therapists are prime targets as well. Like medical professionals, their work takes place in private, which opens them up to claims of negligence or misconduct.
A growing market
With so many opportunities for error and the growing size and number of claims, the professional liability insurance market is skyrocketing. The market is expected to reach over $54 billion by 2028, according to Business Research Insights.
Because malpractice lawsuits can cost anywhere from several thousand to millions of dollars to defend, many professionals also purchase a supplemental policy. This type of policy can cover anything above standard malpractice.
Assess your level of malpractice liability and protect yourself from malpractice suits. We can let you know if you're required to carry malpractice coverage. We can also help you determine how much coverage you need. Even if you aren't legally required to carry malpractice insurance, it’s better to be prepared. Misunderstandings and mistakes can occur among even the most seasoned professionals, and litigation is common.