How to Choose Malpractice Insurance

Malpractice insurance provides coverage for professionals from liability arising from the practice of their profession. Known also as "Professional Liability Insurance," "Errors and Omission coverage" or even "Infosecurity Malpractice Insurance;" all are insurance policies that provide coverage when a malpractice lawsuit is filed. Malpractice insurance is becoming commonplace for a wide range of professionals in a variety of fields.

Instructions

1. Read current literature in your field concerning the need for malpractice insurance. Discover if others in your field are being named in malpractice suits and if your professional organization is recommending that members purchase individual professional liability insurance policies.

2. Ask what type of malpractice insurance your employer purchases. Ask specifically if you are a named insured on the policy or if the policy merely covers the business and named partners. If possible, obtain a copy of the liability policy for your records.

3. Contact your professional organization, such as the American Academy of Physician Assistants or the American Bar Association and ask for information on malpractice insurance. Many professional organizations will refer you to an insurance professional who services your field for further information. Professional organizations often offer advice on insurance needs for members.

4. Network with other professionals in your field and ask for referrals. Listen to "war" stories of others who have been sued and ask for advice concerning the malpractice liability issues in your field.

5. Assess your individual financial assets to determine if your coverage needs are similar to others in your profession. Remember to include assets held by you and your spouse, since each families' financial situation is different.

6. Contact a malpractice insurance professional to review your particular needs and obtain recommendations on insurance products that provide adequate coverage.

7. Review suggested policies to assess if they fit your particular field and personal financial situation. One size does not always fit all when you are buying insurance

Tips & Warnings

• Attend a conference or informational meeting on professional liability issues in your field. An increasing number of professions are recommending individual malpractice insurance policies be purchased for or by their members.

• Conflicts arise between employers and employees when a malpractice suit is filed. Review employer provided coverage to ascertain if you are provided your own defense counsel and if you can be liable for reimbursement for costs or judgments arising from litigation. An insurance professional or lawyer may be needed to accurately assess your need for individual coverage.

• Do not assume mistakes never happen. Malpractice insurance assists in covering litigation costs associated with both legitimate and spurious claims.

Resources

• The American Academy of Physician Assistants offers information on this topic on their website.
• The Insurance Information Institute's website contains information on malpractice insurance.
• The American Bar Association provides a directory of insurance companies offering malpractice insurance.