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Liability insurance is a cornerstone of risk management in health care, and many clinicians are already familiar with terms like professional liability and general liability. However, a quick recap of their distinctions can be valuable when assessing your practice’s insurance needs.

This guide will outline the key features of each of these types of coverage, explore their differences, and provide insights to help you make more informed decisions.

Liability insurance in healthcare

According to data from the American Medical Association (AMA), roughly one-third of surveyed physicians have faced a medical professional  liability claim at some point in their careers. In an industry as complex and high stakes as healthcare, liability insurance serves as a critical layer of protection against a wide range of risks.

For health care professionals, understanding and actively managing these risks through the right insurance policies is essential to maintaining both financial stability and professional integrity. With comprehensive coverage, you can reduce the potential impact of unforeseen claims, safeguard your practice’s reputation, and ensure that your focus remains on patient care rather than on navigating complex legal or financial challenges.

Choosing the appropriate liability insurance isn’t just a precaution, it’s a strategic decision that enables you to operate with confidence in an unpredictable environment.

Professional liability insurance: Key features and coverage

Medical professional liability insurance, often referred to in healthcare as medical malpractice insurance, is specifically designed to protect physicians and sometimes those under their supervision against claims tied to patient care.

Key features of all professional liability insurance include coverage for legal defense expenses, settlements, and judgments. Medical professional liability policies may also provide limited defense coverage for regulatory and disciplinary actions, cyber liability, and other narrowly defined areas, offering an added layer of security.

Having this insurance in place is a proactive measure that enables you to practice with confidence, knowing you are prepared for potential claims that may arise from professional duties.

Common scenarios covered by medical professional liability insurance

Here’s a quick recap of typical situations that may lead to claims:

• Misdiagnosis or delayed diagnosis: Covers claims where patients allege health issues due to an incorrect or delayed diagnosis.

• Errors in treatment: Protects against claims that treatment was improperly administered or caused harm.

• Medication errors: Addresses claims involving incorrect medications or dosages that lead to patient harm.

• Surgical or procedural mistakes: Provides coverage for claims related to errors during surgeries or other medical procedures.

General liability insurance: Key features and coverage

General liability insurance is essential for protecting healthcare providers from risks unrelated to patient care. This coverage addresses claims involving third-party injuries, property damage, and other non-medical liabilities that can arise during the operation of a practice or business.

Key features of general liability insurance include coverage for legal defense costs, settlements, and judgments related to these claims. Additionally, policies may offer protection against advertising-related liabilities, such as libel or slander.

For practices with physical locations, this insurance also helps safeguard against the financial impact of unexpected accidents or disputes.

Common scenarios covered by general liability insurance

Here’s a quick recap of situations where general liability insurance provides protection:

• Slip-and-fall accidents: Covers claims if a visitor or patient slips, falls, and sustains injuries on the premises.

• Property damage: Addresses incidents where the healthcare practice is held liable for damaging a third party’s property.

• Libel or slander claims: Protects against allegations of defamation that could arise from advertising or other communications.

• Non-employee injuries: Covers injuries (including those resulting from crime) on the premises that occur to non-employees, such as vendors or visitors, while they are on-site.

Key differences at a glance

While professional liability and general liability insurance both play crucial roles in protecting healthcare businesses and clinicians, their purposes and coverage areas are distinct. Historically, professional liability was included in general liability policies but is now explicitly excluded, leading to the development of specialized products to address emerging risks like management and cyber liability.

Here’s a quick comparison:

	Medical Professional Liability	General Liability
Focus	Protects against claims related to patient care.	Covers claims  unrelated to patient care.
Common Claims	Negligence, misdiagnosis, or treatment errors.	Slip-and-falls, crime on premises, property damage, libel/slander.
Who It Covers	It covers the insured who may be a physician, a midlevel, a clinical person covered under shared limits with the insured or a facility covering the vicarious liability of its employees or agents.	It covers claims by visitors to the insured business
Examples	Surgical errors, medication mistakes, diagnosis errors.	Injuries on-premises, damage to third-party property.

Choosing the right insurance for your practice

Selecting the right liability insurance requires a clear understanding of your practice’s specific risks and operational needs. While medical professional liability insurance is essential in health care to safeguard against claims tied to patient care, general liability insurance ensures protection against a host of claims by third parties. Together, they contribute to a better safety net for your practice, although a comprehensive review of your business may identify other liability needs also.

Here are some factors to consider when evaluating your insurance needs:

• Nature of your practice: If your work involves direct patient care, professional liability insurance is typically mandatory and often required by state laws or hospital privileges.

• Physical location risks: Operating a clinic or office with frequent patient or visitor traffic makes general liability insurance critical to address premises-related incidents.

• Combined coverage needs: Practices with both patient-facing services and physical locations will benefit from securing both types of insurance for more comprehensive protection.

How we can help protect you and your practice

At Physicians Insurance, we specialize in providing tailored insurance solutions for healthcare professionals. As a subsidiary of the Massachusetts Medical Society, we understand the unique challenges you face and offer comprehensive coverage options to safeguard your practice.

Our team of experienced professionals is dedicated to delivering personalized service, ensuring that your insurance needs are met with the highest standards of excellence. By partnering with us, you can focus on delivering quality patient care, knowing that your practice is well-protected.

Contact us today to discuss your insurance needs or request a free, no obligation quote.

Article by Thomas J. Bryant, ARM, and Physicians Insurance President