Know the Difference Between Business Liability and Malpractice Insurance

The best way to differentiate between business liability insurance and medical malpractice insurance is to examine the who’s and what’s of your coverag. Business liability insurance, often referred to as general liability insurance, should be carried by every business. The insurance protects a company from  property damage and personal injuries that occur on the premises. Business liability insurance also provides advertising injury coverage—an injury to a third-party brought about by the business’ advertising its goods and services. This covers copyright or trademark infringement and claims of libel, slander, or invasion of privacy. Business liability insurance protects a company, up to the limits of the policy, from financial loss resulting from unforeseen negligence. Most businesses’ buy general liability coverage with limits of $1 million to $3 million, although some carry “excess liability” policies up to $10 million or more. Policy limits are often stated as $1M/$3M, This means the insured is covered for up to $1M per each claim, and $3M during the policy period. Any claims over these amounts would be the responsibility of the insured, unless of course they have an Umbrella policy which may provide additional coverage.

ID-100153653

Many professionals believe that business liability insurance covers them adequately and for most it does. Doctors and physicians however need insurance that protects them from liability related to their medical practice. This type of liability insurance is termed medical professional liability insurance. Doctors, Physicians, and most all healthcare professionals get their own label for professional liability insurance—medical malpractice or Med-Mal. While the coverage has a slightly different name—it does the same thing as other liability insurance policies, it protects the insured from claims of negligence, misrepresentation, violation of good faith, and inaccurate advice as a professional.

Medical malpractice insurance specifically protects against claims of medical negligence. And even doctors who make no mistakes can be sued, along with their employees. Lawsuits can drag on for years. While medical professionals win most malpractice lawsuits, the legal system rarely allows for the defended to recover expenses related to legal fees, expert witness fees, and settlements. Medical malpractice insurance is purchased to protect a physician, doctor, healthcare professional, or healthcare facility from some of the financial risks of practicing medicine. The costs of a legal defense can be extremely high and potential losses financially devastating, medical professional liability insurance (Med-Mal) is essential to every health care professional.

The purpose of this article is to provide information, rather than advice or opinion.