Get CMIC Physicians And Surgeons Professional Liability Application 2019-2024

Overview: A medical professional liability insurance policy covers bodily injury or property damage. It also covers liability for personal injury such as mental anguish.

Medical professional liability insurance (MPLI) is often identified under the misnomer of medical malpractice insurance (MMI). It is purchased to protect a physician or health care institution from the financial risks-the liability-of practicing medicine.

It's important to note there are two types of liability coverage: bodily injury and property damage.

There is no legal requirement in the state of California for most providers to carry medical malpractice insurance – a physician only is required to carry liability insurance in an outpatient surgery setting.

Professional liability is often referred to as medical malpractice insurance when it applies to doctors and other healthcare professionals, such as therapists.

The two basic types of malpractice insurance are "claims-made" and "occurrence-made." "Claims-made" insurance protects you from malpractice claims only if the company that insured you at the time of the alleged "occurrence" is the same company at the time the claim is filed in court.

And while these terms might be used interchangeably, there is a key difference. Medical malpractice insurance covers your legal costs, including judgments and settlements for claims that you caused a patient's death or injury. Professional liability insurance covers errors that you make in your business activities.

Professional liability insurance helps protect you from lawsuits filed by unsatisfied clients. For example, if you miss a project deadline, make an omission in your work, or provide ineffective business advice, your client may sue you.