If you are a doctor, surgeon, or healthcare worker, you have probably heard of medical malpractice insurance. You may also know about professional liability insurance or errors and omissions coverage. People sometimes use them interchangeably—and often misunderstand them.
Here’s the truth: picking the wrong coverage or not understanding the details can put your assets and career at risk.
The American Medical Association (AMA) reports that by age 55, nearly 2 out of 3 physicians have been named in a lawsuit. And according to the National Practitioner Data Bank, over 12,000 medical malpractice payments were made in 2022 alone, totaling billions in damages. This is not a corner of your career to overlook.
In this guide, we will answer a simple question: Is professional liability insurance the same as malpractice insurance? And the main points we’ll cover are as follows:
This will allow you to better answer the question, "Is malpractice insurance the same as liability insurance?" so you can protect your license, livelihood, and reputation.
Professional liability insurance, also known as E&O insurance or errors and omissions insurance, protects professionals. It’s designed to provide coverage when others accuse them of negligence, mistakes, or not providing services that lead to a client’s loss. This type of policy applies to a wide range of industries: law, finance, architecture, marketing, counseling, and yes—medicine.
According to the International Risk Management Institute (IRMI), professional liability insurance is designed to “protect professionals against liability incurred as a result of errors and omissions in performing their professional services.”
Professional liability policies often cover:
Any type of business that involves giving expert advice or specialized professional services can benefit from professional liability insurance, including:
For non-medical professionals, this insurance is often the only protection available for lawsuits related to performance or advice.
Many professionals ask “what is the difference between general liability and professional liability” coverage. General liability insurance protects businesses from claims involving bodily injury, property damage, or personal injury that occur as a result of general negligence on their premises or as a result of their operations. Professional liability insurance, also known as errors and omissions (E&O) insurance, covers claims of negligence, in the performance or failure to perform professional services.
General liability covers claims arising out of general negligence in the operation of a business on the property. Professional liability deals with financial harm or bodily injury arising from professional mistakes. Both are important for complete business protection, especially in service industries. This makes it essential to understand general vs. professional liability insurance.
But here’s the twist: people consider medical professionals “professionals.” However, their risks and lawsuits are unique. They need special coverage called malpractice insurance.
Malpractice coverage is the specific type of professional liability insurance tailored to the healthcare field. It protects healthcare providers from claims that they harmed a patient in the performance of healthcare services. This includes cases of negligence, misdiagnosis, surgical errors, or omissions.
According to Investopedia, a medical malpractice coverage policy helps protect physicians and other licensed professionals from legal costs and damages resulting from lawsuits claiming injury due to professional negligence.
Typically, medical malpractice coverage covers the following:
Malpractice coverage is essential for:
In many states, malpractice insurance is required. Hospitals often mandate minimum coverage limits before credentialing a provider.
A claims-made policy covers a claim that is first made during the policy period. A comprehensive claims-made policy will also allow the insured to report incidents that occur in the provision of healthcare services, for which the insured believes a claim might be made in the future. With a claims-made policy, you'll need to consider tail coverage if you change jobs or retire.
Occurrence-based policies cover claims that arise from an incident that occurred during the policy period, even if a claim is made some years later.
Solo practitioners may buy individual policies, while hospitals often provide umbrella coverage for their staff.
Some policies give the insurer the right to settle claims without your approval. Look for consent to settle policies that give you the final say as to whether or not a claim should be settled.
While medical malpractice insurance is a form of professional liability insurance, there are risks that healthcare providers must address that fall outside of your typical “medical malpractice.” Here is a simple summary to illustrate the point:
Comparison Summary
Understanding medical malpractice and professional liability insurance is simpler when you look at real healthcare cases. Each type of insurance serves a different purpose. Seeing them in action helps clarify their differences.
Here are examples of how each type of coverage helps resolve legal claims. They protect professionals and compensate patients when things go wrong.
In a notable Iowa malpractice case, doctors delivered a baby with serious brain damage. This happened because the baby did not get enough oxygen during delivery at Mercy Hospital. The mother’s legal team argued delayed action and poor fetal monitoring. A jury awarded $97.4 million—one of the largest birth injury verdicts in the U.S. (Des Moines Register).
Edith Isabel Rodriguez died outside Martin Luther King Jr.–Harbor Hospital after staff ignored her cries. A federal probe ruled the hospital had violated care standards. The incident spurred malpractice claims for gross negligence. They settled the case for $3 million (NBC News).
A woman collapsed from severe low blood sodium (hyponatremia) and received admission to AdventHealth Tampa. Four physicians failed to stabilize her electrolyte levels, resulting in profound and permanent brain injury. A Hillsborough County jury awarded more than $68.6 million in damages (Becker's Hospital Review).
In 2002, 50-year-old Stephanie Tesoriero found a lump. She got a mammogram, but her doctor misdiagnosed it as a clogged milk duct. Sixteen months later, doctors diagnosed her with metastatic breast cancer as the mass had grown. A jury awarded her $15 million for delayed diagnosis, allowing cancer to spread to lymph nodes and bones (NBC News).
In December 2013, 13‑year‑old Jahi McMath underwent a tonsillectomy at Children’s Hospital Oakland. Post-surgery complications led to cardiac arrest, massive blood loss, and severe brain injury. Declared brain-dead days later, the hospital faced a lawsuit for negligence and wrongful death. Her family’s legal challenge is ongoing, with the incident highlighting catastrophic anesthesia complications (ABC News).
In early 2024, a ransomware attack hit Change Healthcare, which is part of UnitedHealth. This attack stopped billing systems and exposed patient data. Plaintiffs filed lawsuits over the failure to secure sensitive health information.
Because the incident involved administrative oversight and HIPAA violations—not clinical error—professionals handled it through professional liability (E&O) coverage, not medical malpractice insurance (Reuters).
A San Antonio clinic suspended a physician for inappropriately touching a patient during an exam. The victim sued the clinic for negligent supervision and hiring practices. The case did not involve medical treatment errors (San Antonio Express-News).
Participants in a university vaccine trial sued the hospital. They claimed the hospital did not tell them about the trial's suspension and risks. The Illinois Appellate Court ruled these allegations constituted professional negligence, not clinical malpractice (California Healthline).
In one of the biggest employment cases in healthcare, a physician assistant won $168 million. She claimed that someone harassed her, bullied her, and retaliated against her at a hospital. The case centered on credentialing, workplace conduct, and retaliation and not medical malpractice (ABC News).
In December 2023, Christiana Care Health System paid $47 million. This hospital system is the largest in Delaware.
The payment was to settle a lawsuit under the False Claims Act. The whistleblower alleged the hospital provided free services and improperly billed Medicaid using attending physicians for profit. This was an administrative fraud case, not medical malpractice (AP).
Requirements for medical malpractice insurance and professional liability vary widely depending on state laws, hospital privileges, and credentialing boards. Some states have mandates and minimum coverage amounts, while others leave it up to the employer, any hospital extending privileges, or the individual physician(s) themselves.
Seven states require doctors to carry a minimum level of professional liability or medical malpractice insurance:
For further clarity, in Connecticut, the language of the law includes a requirement for "professional liability insurance" but this specifically refers to "medical malpractice insurance" for doctors. In the other six states, the language of the law requires “medical malpractice insurance,” but doesn’t use the broader professional liability label Connecticut does.
Knowing the extent to which you need medical malpractice insurance and additional professional liability protection is important. It can help you feel secure. Without it, you might face financial trouble.
Choosing the right malpractice insurance is one of the most important decisions you’ll make as a healthcare provider. Whether you are a doctor, nurse, dentist, or specialist, your policy is not just a formality. It is your financial and legal safety net.
With malpractice claims on the rise and payouts often reaching six or seven figures, knowing what to look for in your coverage is critical. Below are five essential features to evaluate before you sign a policy.
This is one of the most misunderstood parts of medical malpractice insurance. A claims-made policy covers claims-made while the policy is active. That means if you're sued after your policy has expired, for example, after retirement or after leaving one job for another—even for something that happened years earlier—you’re not covered unless you’ve purchased tail coverage.
An occurrence policy covers any incident that happened while the policy was active. This is true even if you file the claim after you’ve left one job and moved on to another. Claims-made policies are by far the prevailing choice for healthcare providers. Occurrence policies tend to be more expensive and can expose you to underinsurance if a claim arises many years after the healthcare services at issue were provided and is covered under a policy that has long since expired.
Some insurers include a clause that allows them to settle a malpractice claim without your input. While that might seem convenient, a settlement can damage your reputation. A paid claim—especially one you didn’t agree with—can impact your credentialing, hospital privileges, and future insurability.
Look for a policy that has a “pure consent” or “consent-to-settle” clause. This clause gives you the final say before a settlement occurs. This is especially important in specialties where your name and reputation closely connect to your patient base.
Your policy should meet or exceed both state-mandated minimums and your hospital or employer requirements. A common standard is $1 million per claim and $3 million in the aggregate for each policy year. This might not be enough if you work in some high-risk fields or medical specialties like neurosurgery, obstetrics, or emergency medicine.
Some medical malpractice insurance policies include legal defense costs within your coverage limits. That means your legal fees erode the funds available for a settlement or judgment. Choose a policy that pays defense costs outside the limits. This gives you full protection for both legal and settlement expenses.
Every policy has exclusions—things it simply won’t cover. Common exclusions include:
Make sure you understand what’s excluded and whether you need additional protection. For example, some providers add administrative proceedings, cyber liability, license defense, or regulatory audit coverage as optional riders.
Bottom line: The right malpractice insurance policy should align with your scope of practice, state laws, and career goals. Don’t just shop by price—shop by protection. And when in doubt, consult an advisor who specializes in insurance for healthcare professionals.
A: Not quite. Malpractice insurance is a specific type of professional liability insurance for medical providers. Think of it as a subcategory, not a synonym.
A: No. General liability covers physical injuries or property damage arising out of ordinary negligence, not professional mistakes. Malpractice covers clinical negligence or claims arising from the provision of professional healthcare services.
A: Most do. Some states require it by law; others leave it to hospitals or employers. Always check local requirements.
A: Absolutely not. General liability won’t cover you for patient care claims—only a malpractice policy will.
A: If you provide medical consulting outside of patient care, always check with your insurance agent to make sure this is either covered directly or via an additional endorsement.
Indigo, for example, provides a sublimit for expert witness coverage for physicians who are retained as expert witnesses in medicolegal work. Again, check with your insurance agent.
For doctors and healthcare workers, dealing with insurance is not just paperwork. It is an important part of protecting their careers. One lawsuit—valid or not—can cost hundreds of thousands of dollars, not to mention your reputation and license.
The key takeaway is that professional liability insurance and medical malpractice insurance relate to each other, but they differ.
At the end of the day, insurance isn’t about checking a box. It’s about protecting your future.
Medical malpractice insurance products offer crucial coverage and support for physicians navigating medical malpractice claims. Indigo makes it easier to get medical malpractice coverage. This lets you focus on what you do best—seeing patients.
Indigo uses strong data sets and artificial intelligence in its unique underwriting model. This helps analyze thousands of data points quickly. As a result, it offers personalized pricing to doctors in all medical fields. Indigo rewards physicians that practice good medicine with better insurance costs.
Connect with us today and protect yourself against these increasing risks by investing in the right medical malpractice insurance coverage now.
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