Malpractice Insurance


Definition of Malpractice Insurance

Malpractice insurance, also known as professional liability insurance, provides legal coverage for disputes arising from professional services. If the insured is sued for alleged negligence, the insurance company will provide a legal defense and pay the settlement or court ordered award to the claimant.


  1. Function

    • Just as car insurance covers liabilities associated with a vehicle, malpractice insurance covers liabilities dealing with professional services. In most states, professional practitioners such as attorneys and doctors are strongly encouraged or required by law to carry malpractice insurance.

    Industry Coverage

    • Malpractice insurance is available to most professionals, including, but not limited to, accountants, attorneys, architects, counselors, consultants, dentists, doctors, engineers, fitness professionals, health care professionals, nursing professionals, orthodontists, physical. Occupational therapists, pharmacists, physician assistants, psychologists, psychiatrists, social workers, students, surgeons and therapists are also eligible for it.


    • Malpractice insurance provides financial and legal coverage for disputes arising from professional services. If the insured is sued for alleged negligence, the malpractice insurance company will defend the practitioner in the lawsuit and is also responsible for paying a settlement or court ordered award to the claimant on behalf of the insured professional.

    Malpractice Insurance v. General Liability Insurance

    • General liability insurance is usually limited to physical injuries, such as property damage or bodily injuries, and does not cover intangible injuries. If a professional damages a client’s property, general liability insurance will cover the damage. However, if a professional causes the client to suffer intangible damages, such as emotional or financial loss, the general liability insurance will not cover it. Unlike general liability insurance, malpractice insurance covers those intangible damages. Malpractice insurance also covers damages resulting from negligence.

    Expert Insight

    • If you are a professional, protect yourself, your business and your assets by obtaining malpractice insurance. If you are hiring a professional, be sure to ask them for proof of malpractice insurance.