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Physician Contract Glossary · Malpractice & Insurance

Professional Liability Insurance

Professional liability insurance, or malpractice insurance, covers you against claims of medical negligence.

Professional liability insurance, the formal name for malpractice coverage, defends you and pays claims when a patient alleges negligence. It comes in two main forms, claims-made and occurrence, and the form determines whether you need tail coverage when you leave. The contract should say who provides it, what the limits are, and critically who pays for tail. Premiums vary enormously by specialty and state.

WHAT TO WATCH FOR

Confirm the policy type, the coverage limits, and who buys the tail at departure. The single most expensive surprise in many contracts is discovering you owe a tail premium worth twice your annual malpractice cost.

Related terms

Stop being recruited. Start choosing.

You are about to sign something the senior people in your program signed without reading.

They had no guide either. You do. Start with the option that costs you nothing: see every practice that is actually out there before anyone hands you a contract.

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