Medical Malpractice: Professional Liability for the Healthcare Field

**Medical Malpractice Insurance** is a highly specialized form of **professional liability** (similar to the E&O discussed in Article 7). It is designed to protect physicians, surgeons, hospitals, and other healthcare professionals from lawsuits alleging negligent acts or omissions (mistakes) that result in bodily injury or death to a patient.

The Two Policy Triggers: Claims-Made vs. Occurrence

This distinction is crucial in malpractice coverage:

• Occurrence Policy: Covers any incident that *occurred* while the policy was active, regardless of when the claim is filed (even decades later). This is the gold standard but is more expensive.
• Claims-Made Policy: Covers incidents only if the incident *occurred* AND the claim is *filed* while the policy is active. If you cancel a claims-made policy, you lose coverage for past incidents unless you purchase “Tail Coverage.”

Tail and Prior Acts Coverage

These terms are unique to malpractice insurance:

• Tail Coverage (Extended Reporting Period): Insurance you buy when you cancel a Claims-Made policy. It covers claims filed in the future for incidents that occurred in the past while that policy was in force.
• Prior Acts (Nose) Coverage: Coverage offered by a new insurer that covers incidents from your previous job/policy’s history, preventing the need to buy Tail coverage from the old insurer.

Understanding the difference between Claims-Made and Occurrence is essential for any healthcare professional starting or changing jobs to ensure continuous protection against historic liability.