What Is Medical Malpractice Insurance | What does it cover

In healthcare, even the most experienced professionals can face unexpected outcomes. Patients may react unpredictably, treatments might not go as planned, and sometimes, despite best efforts, mistakes happen.

When they do, the legal and financial fallout can be devastating.

That’s why medical malpractice insurance exists—to protect healthcare professionals, practices, and clinics from the potentially massive costs of claims made against them.

What Is Medical Malpractice Insurance?

Medical malpractice insurance is a type of professional liability insurance specifically designed for those in the medical field. It provides financial protection if a patient alleges that a healthcare provider’s negligence, error, or omission caused them harm.

This coverage pays for:

• Legal defence costs

• Settlements or damages awarded to claimants

• Court fees and associated legal expenses

Without this cover, a single lawsuit—even if unfounded—can result in six-figure legal fees and reputational damage.

Who Needs Medical Malpractice Insurance?

If you provide any form of medical care, you should strongly consider malpractice insurance. This includes:

• Doctors and surgeons

• Nurses and nurse practitioners

• Dentists and hygienists

• Physiotherapists

• Psychiatrists and psychologists

• Private clinics or practices

Even if you’re part of a larger hospital or trust that provides some level of cover, it may not be comprehensive—or follow you if you move into private practice.

What Does Medical Malpractice Insurance Cover?

Most policies include cover for:

• Allegations of professional negligence or misdiagnosis

• Errors in treatment or medication

• Failure to obtain informed consent

• Breach of confidentiality

• Good Samaritan acts (optional in some cases)

Some policies also include:

• 24/7 medico-legal advice lines

• Run-off cover (for claims made after you stop practising)

• Reputational damage support

Claims-Made vs. Occurrence-Based Coverage

This is an important distinction in malpractice policies:

• Claims-made policies cover you only if the claim is made while the policy is active.

• Occurrence-based policies cover you for incidents that occurred during the policy period, even if the claim is made years later.

Understanding which type you have is crucial, especially when switching providers or retiring.

Why Medical Malpractice Insurance Matters

The reality is that even with the highest standards of care, complaints and legal claims can happen. Sometimes it’s a genuine mistake. Other times, it’s a miscommunication or a patient’s dissatisfaction.

Whatever the reason, having the right insurance in place can mean the difference between managing a crisis with confidence—or facing a personal and professional disaster.

How MIC Can Help

At MIC, we specialise in insurance solutions for healthcare professionals. We work with trusted underwriters to tailor malpractice coverage that meets your exact needs—whether you’re a sole practitioner, part of a clinic, or stepping into private work.