Definition: Malpractice insurance is a form of professional liability insurance that most all states require that doctors have. Like other professions that purchase professional liability insurance to protect themselves, medical malpractice insurance will financially protect a doctor that may be sued by a patient for various reasons.
Medical malpractice insurance has been a topic for lawmakers for a number of years. This is because the frequency of medical malpractice lawsuits is continually rising which in turn poses a problem for health care costs. If doctors are sued more medical malpractice insurance lawsuits and settlements need to be paid by the insurance company, therefore the medical malpractice insurance rates rise for all doctors which then raises medical costs for all Americans. Health insurance reform lawmakers are trying to decide how to deal with containing medical malpractice lawsuit payouts.
Also Known As: medical malpractice insurance
Examples: Jim is a doctor that just recently was sued by a patient. Jim contacted his professional liability insurance company about the lawsuit. Although Jim felt he was not at fault, the professional liability insurance company said that they would settle out of court and pay for the settlement with Jim's medical malpractice insurance policy.
