If you make a mistake when treating a patient, or if a patient is disgruntled with your treatments, they may sue you with claims of professional errors. Malpractice insurance is another name for physicians professional liability coverage. It is specifically designed to help you financially and legally when lawsuits of this sort arise.
For example, you may examine a new patient who is claiming to have severe back pain. You may elect to treat him initially with a back brace and bed rest. Later he may file a lawsuit that claims you made an error in your treatment because you did not prescribe strong pain killers. Whether you actually make a mistake or not, you will be forced to address the lawsuit allegations. Without Malpractice insurance, you will end up paying all of your legal fees and related expenses yourself.
With the right level of coverage on your physicians professional liability policy, your insurance coverage will pay the legal expenses and associated costs instead. It will also pay you for income losses if you must take time off work to address the lawsuit. When necessary, this insurance will also pay your patient’s settlements or award amounts.