Errors and omissions insurance is a type of liability coverage that protects companies from the financial burden of lawsuits that might occur when they make a mistake. In the medical field, some people refer to it as malpractice insurance. Here is what medical E & O covers.
What Does Medical E & O Cover?
All types of errors and omissions policies pay the cost of going to court to defend yourself from a claim that you or your employees made a mistake that harmed a client. It also pays for settlements if the court finds you guilty.
Does Medical E & O Cover Issues Besides Malpractice?
Professional liability in the medical field covers more than just errors committed by doctors while treating patients. Your insurance agent can write a policy to include any of the following situations:
- HIPAA compliance
What Does Medical E & O Not Cover?
Liability insurance does not cover illegal acts that employees intentionally commit. It also will not pay a settlement if a jury finds you guilty of purposely deceiving patients.
Any business that offers a service should carry professional liability insurance. Due to the high risk of malpractice lawsuits by clients in the medical field, medical E & O coverage is especially important.