Healthcare Facilities Business Insurance
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Professional liability / medical malpractice insurance for healthcare facilities

Professional liability insurance, sometimes called medical malpractice insurance, protects healthcare facilities from legal costs related to professional negligence.

Professional liability insurance guards against errors

In the healthcare industry, a simple mistake can have tremendous repercussions. If a patient sues over the quality of their care, you could find yourself in an expensive legal battle.

Professional liability insurance, also called malpractice insurance, offers the protection your healthcare business needs to continue providing its services while handling a lawsuit. However these policies aren't exactly the same.

This policy provides liability coverage related to allegations of:

Professional liability, often called errors and omissions (E&O) insurance, provides coverage for liability claims related to:

  • Failure to uphold contractual promises
  • Incomplete or substandard work
  • Missed appointments and undelivered services

Malpractice insurance covers healthcare professionals when they are blamed for harming a patient, such as:

  • Pain, suffering, or mental anguish caused by you to a patient
  • Medication errors
  • Misdiagnoses
  • Failure to monitor a patient
  • Failure to refer a patient

These types of coverage can be required by some states.

What coverage can medical professional liability insurance provide for healthcare facilities?

Even the most experienced healthcare facilities can make a mistake or be sued for a claim of substandard care, such as surgical and medication errors, as well as violating a patient's privacy.

Professional liability and medical malpractice coverage can help cover the cost of legal defense, including the cost of hiring a lawyer.

Specifically, this type of insurance coverage will help protect your facility from:

Failure to deliver promised services

A miscommunication or unexpected event could cause even the most well-organized healthcare provider to miss an appointment. Also, a procedure – such as Lasik eye surgery – might not produce the desired outcome.

If a patient files a lawsuit because you failed to deliver as promised, professional liability insurance can help pay the cost of hiring a lawyer and other related expenses.

Allegations of negligence

Ambulatory surgery centers, hospitals, and other medical facilities are vulnerable to serious risks. For example, if there's a complication during an outpatient surgery and one of your surgeons is accused of negligence, your small business could be held liable.

When an accusation of negligence turns into a lawsuit, medical malpractice insurance can pay for legal expenses, including a judgment or settlement.

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Work mistakes or oversights

Even if a claim is found to be meritless, accusations of a professional mistake can still require a costly legal defense. For example, if a patient claims your medical office made a serious billing error, it can quickly turn into an expensive lawsuit.

Professional liability insurance can help cover defense costs, settlements, and judgments related to work errors.

Privacy violations

If a customer accused your facility, doctor, or nurse practitioner of violating their privacy under the Health Insurance Portability and Accountability Act (HIPAA), it would probably be a covered claim under your professional liability insurance coverage.

Other recommended policies for healthcare facilities

Medical malpractice and healthcare professional liability insurance policies can help cover the cost of lawsuits related to your business decisions and medical care, but they don't provide complete protection. At any healthcare facility, accidental injury and property damage are daily risks.

Other insurance products to consider including in your risk management plan are:

General liability insurance: Healthcare facilities usually buy this policy first. It covers common third-party risks, like a patient slipping on a wet floor. General liability coverage is also often required by landlords when signing a commercial lease.

Business owner’s policy: A BOP combines general liability insurance with commercial property insurance, typically at a lower rate than if the policies were purchased separately.

Workers’ compensation insurance: Required in almost every state for healthcare facilities with employees, workers’ comp can cover medical costs for work injuries.

Cyber insurance: This policy helps healthcare facilities survive data breaches and cyberattacks by paying for recovery expenses and other associated costs.

Commercial auto insurance: Most states require this coverage for business-owned vehicles. It covers the cost of accidents involving a healthcare facility's vehicle.

Get free quotes and buy online with Insureon

Are you ready to safeguard your healthcare facility with professional liability insurance or another type of business insurance? Complete Insureon’s easy online application today to get quotes from top U.S. insurance companies.

You can also consult with an insurance agent on your business insurance needs. Once you find the right policy, you can begin coverage and get peace of mind in less than 24 hours.

Updated: March 18, 2024
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