You are currently viewing General liability or malpractice insurance for doctors? What is the Difference?

General liability or malpractice insurance for doctors? What is the Difference?

So, what’s the difference between the two?

General liability insurance protects businesses from claims of damages due to the business’ operations. This can include things like damage to property, personal injury, or even advertising injuries. This means that if a visitor is injured due to a business’ operations (like a slip and fall at a doctor’s office), commercial liability would cover it. Additionally, liability insurance typically covers a wider range of risks than malpractice insurance.

Quick Facts

  • Liability insurance protects you against liabilities resulting from bodily harm and property damage.
  • Liability insurance protects you from paying out of pocket if you are sued or held legally responsible for an accident or damage.
  • Provisions not explicitly addressed include malicious damage, contract liabilities, and criminal penalties.
  • Liability insurance protects against claims arising from injuries or damage caused by the policyholder. It is typically required for automotive insurance policies, product manufacturers, and anyone who practices medicine or law.
  • Liability insurance protects you against financial responsibility in the event of injury to another person or damage to their property. Workers’ compensation, commercial liability, and personal liability are all types of liability insurance. 

Malpractice insurance is specifically designed for medical professionals. It is a type of professional liability insurance that helps protect doctors and nurses from being sued for civil damages due to medical errors or mistakes. This can include things like botched surgeries, misdiagnoses, or even prescribing the wrong medication.  Any type of rendering of professional services to a patient would be strictly excluded under the General Liability policy. 

Malpractice insurance is typically required by law in order to practice medicine, whereas commercial liability insurance is not required by law but may be required by some landlords or customers.

Quick Facts

  • Malpractice coverage, sometimes known as medical liability insurance, is a form of professional liability insurance that covers health care providers.
  • Patients may file claims against healthcare providers who cause medical negligence that leads to additional medical issues or death.
  • According to studies, medical negligence is the third leading cause of death in America. Therefore, it’s more probable than not that a healthcare professional will need malpractice insurance at some point.
  • You obtain malpractice insurance through private insurers, employer-sponsored plans, or organizations like medical risk retention groups (RRGs).
  • Claims-made policies and occurrence policies are the two primary types of professional liability insurance.
  • Malpractice insurance not only covers legal costs, but punitive and medical damages as well.

Each type of insurance covers different types of damages, so it’s important to have both. In addition, each type of insurance comes with various coverages, extensions, exclusions, and nuances.  Choosing the right type of insurance depends on your specific business needs, consult with MPL Risk to find out more.