Home » Is Professional Liability Insurance the Same as Malpractice Insurance?
May 15, 2023
Clearwater Partners

Is Professional Liability Insurance the Same as Malpractice Insurance?

Health care professionals provide essential services to patients and the community at large. It is rewarding work, but it also includes significant risks and exposures. Being entrusted with the health and wellness of patients and clients is an immense responsibility.

Even a minor miscalculation or lapse in attention could have catastrophic consequences for a patient’s short- and long-term well-being, leading to devastating financial losses. That’s why effective loss control measures must be in place regardless of how experienced, responsible and diligent a provider and their employer may be. With that in mind, it’s essential to understand malpractice insurance fully.

Understanding Professional Liability Insurance vs. Malpractice Insurance

Professional liability insurance (also known as errors and omissions insurance) is an essential component of adequate loss control measures for any organization that provides services and professional advice to other parties. The usefulness of this form of coverage transcends many industry lines and may also be customized or specifically tailored to suit various needs.

Malpractice insurance, or medical malpractice insurance, is a specialized coverage focused on providing financial protection for those in the health care industry. If a doctor or other medical professional is accused of providing guidance or services that were inadequate or negligent, this coverage can help pay for the following legal costs:

  • Legal defense
  • Medical damages
  • Court costs
  • Arbitration fees
  • Settlements
  • Court-ordered judgments
  • Compensatory damages

In addition to financial protection, malpractice insurance is legally required in many states. Furthermore, many practices and health care companies may require their providers to carry their own coverage. Malpractice insurance can also give patients peace of mind as they entrust a provider with their well-being.

Different Types of Malpractice Insurance

In addition to understanding the importance of malpractice insurance, health care professionals must ensure they fully grasp the capabilities and limitations of their policies. Generally, most malpractice coverage can be categorized as one of the following:

  • Claims-made coverage—These policies are limited to covering claims when an alleged incident occurred after coverage’s retroactive date and while the policy was still active.
  • Occurrence coverage—These policies can render financial assistance for claims as long as coverage was active at the time of the incident in question, even if they have lapsed by the time a lawsuit is filed.

Get the Right Coverage

With over two decades of serving the insurance needs of businesses, the agents of Clearwater Partners are well-equipped to help medical professionals and practices protect their finances and future with an optimal malpractice policy. Visit our website or call (813)497-7579 to get started today.


This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.

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