Malpractice Insurance

Professional liability insurance that protects healthcare providers against claims of medical negligence or errors, covering legal defense costs and potential settlement or judgment payments.

Malpractice insurance, also called professional liability insurance, is coverage that protects you financially if a patient sues you for negligence or harm. Every payer requires proof of current malpractice insurance as part of the credentialing process. No insurance, no credentialing. Most payers require minimum coverage limits, typically $1 million per occurrence and $3 million aggregate. Some specialties or states require higher limits. If your policy limits are below what a payer requires, your application will be held until you increase your coverage. There are two types of policies: occurrence and claims-made. An occurrence policy covers any incident that happens during the policy period, regardless of when the claim is filed. A claims-made policy only covers claims filed during the policy period. If you switch from a claims-made to an occurrence policy, or if you leave a practice with a claims-made policy, you need tail coverage to protect against claims filed after the policy ends. Credentialing applications ask for your insurance certificate, which shows your carrier, policy number, effective dates, and coverage limits. They also ask about your malpractice claims history. Having a past claim does not automatically disqualify you. Payers understand that claims happen, especially in high-risk specialties like obstetrics or surgery. What matters is the pattern and the outcomes. Keep your malpractice insurance current at all times. A lapse in coverage is a red flag during credentialing and re-credentialing. Set calendar reminders for renewal dates, and make sure your credentialing specialist has the updated certificate before the old one expires.