What Is Malpractice Insurance?.Malpractice insurance is a type of professional liability insurance purchased by healthcare professionals. This insurance coverage protects healthcare providers against patients who file suits against them under the complaint that they were harmed by the professional's negligence or intentionally harmful treatment decisions. Malpractice insurance also covers the death of a patient.
KEY TAKEAWAYS. Malpractice insurance is a type of professional liability insurance intended to cover healthcare professionals.. Patients can file lawsuits against healthcare professionals seeking damages for medical negligence that resulted in further health problems or death.. Studies show that medical negligence is the third leading cause of death in the United States, so more likely than not, a healthcare professional will need malpractice insurance.. Malpractice insurance can be obtained through a private insurer, through an employer, or through organizations, such as medical risk retention groups (RRGs).. The two basic types of professional liability insurance are claims-made policies or occurrence policies.. Legal costs, punitive damages, and medical damages are all covered under malpractice insurance.