What is professional liability insurance in the medical profession?

Medical Malpractice InsuranceIn the medical profession the most common term for professional liability insurance is knows as "Malpractice Insurance". AnswerSometimes doctors make mistakes and lawyers sue them to collect monetary damages. Sometimes doctors do not make mistakes but lawyers still sue them to try to collect money damages. Some lawyers, such as former vice presidential candidate Edwards in North Carolina, have become billionaires suing doctors.

With so many lawsuits so often, doctors must hire lawyers and purchase insurance. If they did not, one verdict could wipe them out. They purchase professional liability insurance. When the doctor faces a lawsuit, the insurance company provides the lawyer and if there is an unfavorable verdict, the insurance company pays.

The doctor pays for this service in advance. 10 to 20% of what you pay to see a doctor can go for his liability insurance.