Medical Malpractice Insurance
Malpractice insurance is professional liability insurance for healthcare providers. “Malpractice” is simply what most clinicians call it. A single claim can follow a clinician for years, even when the care was right, and this coverage pays for your defense and any settlement or judgment, and protects your license and reputation along the way. Stonebrook places malpractice coverage for individual clinicians, group practices and healthcare organizations nationwide.
Reviewed by Nate Feuerman, High Net Worth Insurance Producer at Stonebrook
Last updated
Quick answers
Is malpractice insurance the same as professional liability?
Yes. Medical malpractice insurance is professional liability insurance for healthcare providers; “malpractice” is the more common name.
Claims-made or occurrence?
Claims-made costs less at first but needs tail coverage when you leave. Occurrence covers incidents during the policy forever, with no tail.
What limits do clinicians carry?
$1 million per claim and $3 million aggregate is the most common structure, and many hospitals require it for privileges.
Does my employer’s policy cover me?
It may cover your work for that employer, but usually not moonlighting, side practice or volunteer work. Check before you rely on it.
Malpractice coverage for every kind of clinician.
Physicians and surgeons
Individual and group coverage for every specialty, including locum tenens and telehealth.
Nurses and nurse practitioners
Individual coverage for NPs, RNs and LPNs, whether employed, independent or in a group.
Therapists
Physical, occupational and speech therapists, behavior analysts, and mental health counselors.
Dentists and specialists
General dentists, oral surgeons, orthodontists and dental groups.
Allied health
Physician assistants, CRNAs, pharmacists, chiropractors and other licensed providers.
Groups and facilities
Entity coverage for practices, clinics and facilities. See professional liability for healthcare operators.
Claims-made or occurrence?
The trigger decides when a claim is covered, and what you need when you change jobs or retire.
| Claims-made | Occurrence | |
|---|---|---|
| Covers | Claims first made while the policy is active, for incidents after the retroactive date | Incidents that happen while the policy is active, whenever the claim is made |
| Early-year cost | Lower, stepping up over the first several years | Higher from the start |
| When you leave | Needs tail coverage, or prior acts coverage on the next policy | No tail needed |
| Best for | Clinicians who expect continuous coverage and want lower early premiums | Clinicians who want simplicity and no future tail cost |
Tail can be expensive. Before you sign an employment contract, find out who pays for tail coverage when you leave.
What to check in a malpractice policy.
- Consent to settle.Whether the carrier can settle without your agreement, and any “hammer clause.”
- Defense costs.Inside or outside the limit, and your choice of counsel.
- Licensing board defense.Coverage for defending complaints to your licensing board.
- Retroactive date and tail.Keep the retro date continuous, and know your tail options and price.
- Telehealth and multi-state practice.Make sure every state where you see patients is covered.
- Cyber and billing.HIPAA breaches and billing errors usually need separate cyber coverage.
Who requires malpractice coverage.
Hospitals and surgery centers usually require proof of coverage, often $1 million per claim and $3 million aggregate, to grant privileges. Payers and credentialing organizations often ask for it too.
Some states require physicians to carry malpractice coverage or show financial responsibility, and some run patient compensation funds that sit above a primary policy. Requirements vary by state and profession.
For practices and facilities, malpractice sits alongside general liability, EPLI, workers’ comp and excess liability. Treatment programs can see our treatment center division.
A broker who knows your business.
Stonebrook is an independent agency. We work with standard, specialty and excess and surplus lines carriers, so we can shop malpractice coverage across specialist carriers instead of fitting you into one company’s program.
Since 1982 we have placed commercial programs for businesses and property owners across the country. We read the fine print, flag the exclusions that matter for your operation, and advocate for you at underwriting, at renewal and at claim time.
Coverage that works together.
Most families need more than one policy. Here is how the pieces fit.
Malpractice insurance questions, answered.
Is medical malpractice insurance the same as professional liability insurance?
Yes. Medical malpractice insurance is professional liability insurance for healthcare providers. “Malpractice” is the name most physicians, nurses and patients use; insurers and policy forms often say “professional liability” or “medical professional liability.” The coverage is the same.
What does medical malpractice insurance cover?
It covers claims that a healthcare provider’s care, diagnosis or treatment injured a patient, including legal defense, settlements and judgments up to the policy limits. Many policies also cover defense of licensing board complaints.
What is the difference between claims-made and occurrence malpractice?
Claims-made covers claims first made while the policy is active, for incidents after the retroactive date, and needs tail coverage when you leave. Occurrence covers incidents that happen during the policy period regardless of when the claim is made, so no tail is needed.
What is tail coverage?
Tail coverage, or an extended reporting endorsement, covers claims made after a claims-made policy ends for incidents that happened while it was active. Without it, or prior acts coverage on your next policy, you can be left uninsured for past work.
How much malpractice coverage do I need?
$1 million per claim and $3 million aggregate is the most common structure and a frequent hospital requirement. High-risk specialties and some states call for more.
Am I covered by my employer’s malpractice policy?
Usually for work you do for that employer. Moonlighting, private practice, volunteering and telehealth outside the job often aren’t covered, and the employer’s policy may not protect your interests if they differ from the employer’s.
Do therapists and counselors need malpractice insurance?
Yes. Physical, occupational and speech therapists, behavior analysts and mental health counselors face professional liability claims and licensing complaints, and many employers, schools and payers require coverage.
Does malpractice insurance cover telehealth?
Often, but confirm it covers every state where your patients are located and the type of telehealth you provide.
What exactly is medical malpractice insurance?
Professional liability coverage for healthcare providers against claims that their care caused injury, including legal defense. Facilities and senior care operators usually buy it as part of a combined professional and general liability policy.
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