Medical malpractice insurance is a specialized type of professional liability insurance that provides coverage to healthcare professionals, including physicians, surgeons, nurses, dentists, and other medical practitioners, in the event of claims alleging negligence or errors in patient care. The purpose of medical malpractice insurance is to protect healthcare providers from financial losses associated with legal actions and to ensure that patients who may experience harm due to medical errors have a means of seeking compensation.

Key features of medical malpractice insurance include:

Coverage for Legal Expenses: Medical malpractice insurance typically covers the legal costs associated with defending against malpractice claims. This includes attorney fees, court costs, and settlements or judgments.

Financial Protection: In the event that a healthcare provider is found liable for medical malpractice, the insurance policy provides financial protection by covering damages awarded to the injured party (the plaintiff).

Tail Coverage: Medical malpractice insurance often includes "tail coverage" or "extended reporting period" options. This feature allows healthcare providers to report claims for incidents that occurred during the policy period, even if the claim is made after the policy has expired or been canceled.

Limits and Deductibles: Like other forms of insurance, medical malpractice policies have coverage limits, which represent the maximum amount the insurance company will pay for a covered claim. Policies may also have deductibles, which are amounts the insured must pay out of pocket before the insurance coverage applies.

Claims-Made vs. Occurrence Policies: Medical malpractice insurance can be structured as either claims-made or occurrence policies. Claims-made policies cover claims that are reported during the policy period, while occurrence policies cover incidents that occur during the policy period, regardless of when the claim is made.

Medical malpractice insurance is a critical component of risk management for healthcare professionals and facilities. It helps ensure that healthcare providers have the financial support necessary to address legal challenges and, in some cases, improve patient safety practices. The specific terms and conditions of medical malpractice insurance can vary, and healthcare professionals are advised to carefully review their policies and consult with insurance professionals to understand the coverage provided.