What Is Malpractice Insurance?
Malpractice insurance is a specialized type of professional liability insurance designed to protect professionals, particularly in healthcare, from lawsuits involving negligence, errors, or failure to deliver expected services.
In simple terms, if someone claims your professional actions caused harm, malpractice insurance helps cover legal costs, settlements, and damages, protecting your career, your business, and your personal assets.
This coverage is most commonly associated with doctors, nurses, dentists, and other healthcare professionals, but can apply to other high-liability fields as well.
Why Malpractice Insurance Matters
Even the most experienced professionals can make mistakes or face false claims. In healthcare, a single claim can easily exceed $100,000 in legal costs alone.
Malpractice insurance covers legal defense costs, pays settlements and judgments, protects your professional license, and gives you peace of mind in a high-risk profession.
Even if the claim is without merit, legal defense can be financially devastating. Malpractice coverage ensures your practice remains secure.
Who Needs Malpractice Insurance?
Malpractice insurance is essential for anyone providing professional services where a mistake can result in harm.
Common professions that need malpractice coverage include:
Doctors, nurses, and surgeons
Dentists and orthodontists
Physical therapists and chiropractors
Psychologists and mental health professionals
Medical clinics, private practices, and hospitals
Nurse practitioners and physician assistants
Some states and employers require malpractice insurance by law. Even when it’s not mandatory, it’s a smart way to protect your livelihood.
What Does Malpractice Insurance Cover?
Typical malpractice policies cover:
| Covered Event | Example Scenario |
|---|---|
| Professional negligence | Doctor misdiagnoses a patient, causing harm |
| Treatment errors | Nurse administers the wrong medication |
| Missed diagnosis | Specialist fails to detect a serious condition |
| Failure to deliver promised care | Patient claims harm from inadequate treatment |
| Legal defense costs | Attorney fees, court costs, settlements |
What malpractice insurance does not cover:
Fraud or criminal acts
Sexual misconduct
General liability claims such as slip and fall accidents
Workers’ compensation claims
How Much Does Malpractice Insurance Cost?
The cost of malpractice insurance depends on profession, location, coverage limits, and claims history.
| Profession | Average Monthly Cost | Average Annual Cost | Coverage Limit |
|---|---|---|---|
| Nurse Practitioner | $30–$45 | $360–$540 | $1M / $3M |
| Physician / Surgeon | $60–$150 | $720–$1,800 | $1M / $3M+ |
| Dentist | $40–$80 | $480–$960 | $1M / $3M |
| Psychologist | $25–$50 | $300–$600 | $1M / $3M |
These prices are averages. Policies can be adjusted to fit your specific practice needs and budget.
Malpractice vs. Professional Liability Insurance
The terms malpractice insurance and professional liability insurance are often used interchangeably.
| Term | Commonly Used By | Coverage Focus |
|---|---|---|
| Malpractice Insurance | Medical and healthcare fields | Medical negligence, treatment errors |
| Professional Liability | Non-medical professions | Errors, omissions, professional services |
In short: if you work in healthcare, it’s typically called malpractice insurance. In other industries, it’s known as professional liability. Both offer similar protection.
Why Choose Toby Hansen Agency for Malpractice Insurance?
Toby Hansen Agency searches nearly 100 carriers to find:
The lowest price
The most comprehensive coverage
A fast and easy quote process
Transparent policy options
Whether you’re a solo practitioner or part of a clinic, we’ll tailor a policy that fits your needs without overpaying.
How to Get Covered
Fill out our free quote form below.
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Don’t wait for a lawsuit to destroy your career. Protect yourself today.
What is malpractice insurance? It’s your financial safety net when something goes wrong in your professional practice.
Whether it’s an honest mistake or a false claim, malpractice insurance covers your legal costs, protects your assets, and lets you focus on your patients instead of worrying about lawsuits.
Toby Hansen Agency can help you secure the best coverage at the lowest price.
Get a free quote today and protect your future.
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