Is Professional Liability Insurance
The Same As Malpractice Insurance? (E&O)

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So is professional liability insurance the same as malpractice insurance? We get this question a lot and it is important know that certain professions require different types of coverage.

Is Professional Liability Insurance The Same As Malpractice Insurance?

Is Professional Liability Insurance The Same As Malpractice Insurance?

Professionals that work closely with other humans can affect their lives in various ways. The goal is to provide a positive service, however, accidents can happen.

Proper insurance coverage can be reassuring to both the professional and the client. Certain professions require different types of coverage.

It is important to purchase the proper policy prior to beginning your practice. Is professional liability insurance the same as malpractice insurance? Professional liability insurance (aka error and omissions insurance) and malpractice insurance are geared towards different professions.

Who Needs Coverage?

Both liability and malpractice financially cover both parties in the event of a professional mistake. These mistakes are not considered intentional, in most cases. Coverage is necessary for a variety of professions. Hair dressers, lawyers, and doctors all work closely with people and have the ability to accidentally injure or personally disrupt lives.

A hair dresser can accidentally burn a client with curling irons or blow dryers. A small cut from scissors can also occur. The client may file a claim for the cost of medical bills. This is an example of liability coverage. Lawyers may lose a case, causing the client personal trauma, loss of a job, or jail time. There may be a discussion about whether or not the lawyer did everything they could to win the case.

Doctors require liability and also need to add on malpractice insurance due to the extreme nature of their involvement with the human body. Is professional liability insurance the same as malpractice insurance?

Medical Professionals

Doctors and others in the health field must be covered by malpractice insurance. Malpractice insurance covers more than general liability insurance. Patients can undergo life changing injuries or illnesses. Death can also be a result of medical care gone wrong. Emotional family members can be quick to file a suit in the event of losing a loved one. Doctors need to be fully covered. Payouts may include reimbursement of medical fees, legal fees, and compensation for pain and suffering. Patients may lose the ability to work if certain physical ailments take place. Loss of income is also considered in these cases.

Malpractice insurance falls under professional liability coverage, however, it covers a much larger amount of possible charges. Malpractice suits can become extensive, especially when many patients come together to file a law suit as a group. When hundreds of people have suffered similar problems from certain procedure or medical product, they often go in together to prove the wrongdoing. Most professionals do not have this level of responsibility.

Legal Expenses

When problems occur due to professional encounter, law suits often follow. There must be some determination about the extent of the issue and who is at fault. Both parties usually hire legal representation. Insurance covers the legal expenses of both parties if the professional is found to be at fault. This can be one of the most costly parts of the entire ordeal.

Is professional liability insurance the same as malpractice insurance? Most professionals have a lawyer they use regularly that specializes in these cases. Medical professionals, especially, need a lawyer that understands the details of medical care and patient rights. Legal cases can be lengthy when individuals are physically traumatized. The decision is not taken lightly. This time consuming complication can incur enormous costs.

Small Claims

Professional liability insurance can also help with minor charges. Similar to the procedure followed in a car accident, the claim may be settled with negotiation. Court hearings are not always necessary. In this case the insurance company for the professional decides on the liability amount. The client may visit a doctor to assess the damage. The doctor bill, loss of wages, and pain and suffering is usually included in these smaller payouts. Recurring claims may cause premiums to go up. Loss of coverage may be a consequence, as well. These factors are usually enough to motivate professionals to be extra careful with their clients.

Further Reading On Errors And Omissions Insurance

Is Professional Liability Insurance The Same As Malpractice Insurance? - The Bottom Line

We hope this article on is professional liability insurance the same as malpractice insurance? has been informative. Professionals that work closely with other people are at risk on a daily basis. People can be unpredictable when met with physical injuries. These cases often become very involved when medical malpractice is concerned. Proper coverage can protect both parties.

Professionals cannot expect to be perfect at all times. There are always people that are not happy with services, as well. Liability and malpractice coverage helps to supply legal aid to determine fault. Medical bills, loss of wages, and personal trauma are also included in most policies.

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