Professional Liability Insurance Vs. Malpractice Insurance, what are the main differences?
As a an attorney or title agent, you probably know that it’s in your best interest to have adequate E&O insurance in place to protect you and your business should a mistake happen that affects a client. When looking into your insurance options or even in conversations with other professionals, you may have run across these two terms: professional liability insurance and malpractice insurance. Have you ever wondered if they are the same or just which one is right for your firm or agency?
If you don’t know the actual meaning of these terms or what makes them different, we are here to help. Let’s break down the basics of professional liability insurance and malpractice insurance to help you understand the differences and uses between these two forms of insurance.
What is Professional Liability Insurance?
Professional liability insurance (PLI) is a type of insurance designed to protect professionals such as lawyers and title agents in the event that a client claims that they were financially harmed as a result of errors and omissions made by the professional in the delivery of service.
A client could sue you if they feel the services they were promised were not properly provided. It also provides protection if you haven’t made a mistake, but a disgruntled client has filed a claim because their expectations were not met or they were dissatisfied with your service. Most professional liability insurance policies only provide coverage for financial or economic losses suffered by clients, as opposed to property damage or bodily injury.
Common professional liability claims professionals face include:
- Breach of duty
- Breach of contract
- Misleading clients
- Failure to deliver a promised service on time
- Errors or omissions
- Incomplete work
- Undelivered services
- Budget overruns
Who Needs Professional Liability Insurance?
While professional liability insurance is a type of business insurance, not everyone may need it. This type of insurance coverage is a must-have for firms and agencies that provide professional services to customers or clients.
This list includes, but is not limited to:
- Title Agencies
- Insurance brokers
- Financial advisers
- Real estate agents
- Technology professionals
- Advertising agencies
Creative professionals, such as beauty technicians, interior designers, photographers, graphic designers, and writers may want to consider professional liability insurance as well.
Broadly speaking, PLI is designed for anyone who has special training or knowledge in some professional activity. It’s for anyone who holds themselves out to be an expert in certain areas.
What is Malpractice Insurance?
Malpractice insurance is a specialized type of insurance that provides coverage to healthcare professionals for liability claims filed by their patients. Though there are some attorneys that carry malpractice insurance, the best known for is medical malpractice insurance.
When working on a human body, there’ll always be a risk that someone could get hurt. With the potential for errors being high in the healthcare field, having this type of insurance is essential. In fact, carrying malpractice insurance is required by law in most states.
Medical malpractice occurs when a doctor, healthcare professional, or medical facility causes injury or death to a patient through a negligent act or omission. The negligence might be the result of errors or omissions in diagnosis, treatment, or aftercare.
Medical malpractice insurance provides protection against claims arising from:
- A breach of doctor-patient confidentiality
- Failure to diagnose or misdiagnosis
- Surgical errors
- Unnecessary surgery
- Medication errors
- Anesthesia administration mistakes
- Childbirth-related injuries
- Failure to diagnose symptoms
- Ignoring or misreading laboratory results
- Premature discharge
- Poor aftercare
- Bodily injury
- Delayed treatment
Along with other similar charges. Injury costs related to medical malpractice can be extremely excessive. As such, a malpractice insurance policy might prove critical.
Who Needs Malpractice Insurance?
Generally, any provider of healthcare services needs malpractice insurance. This includes:
- Medical students and residents
- Nurses and nurse practitioners
- Advanced practitioners
- Physical therapists
- Allied staff
The Difference Between Professional Liability Insurance and Malpractice Insurance
The difference between these forms of insurance is that professional liability insurance covers damages for a wide range of professionals. Conversely, malpractice insurance is specifically designed to protect healthcare workers from the unique risks they face. For example, a surgeon faces a much greater potential risk of causing injury to another person during a complex procedure.
Professional liability insurance and medical malpractice insurance have something in common: they cover legal defense expenses, as well as any settlement or judgment.
Get a Quick Quote for Professional Liability Insurance
We are all human and sometimes we make mistakes. And even without mistakes, all it takes is for one unsatisfied client filing a lawsuit to ruin your business. At Attorneys First Insurance, we’re here to help you protect your firm or agency in advance.
We offer competitive professional liability insurance policies exclusively for title agents and lawyers. We understand your business’s unique needs and are here to customize your coverage to meet those needs. If you’re looking for the right coverage at the right price, contact us today get a quick quote to find the best rate for your E&O insurance.