The difference between medical malpractice and professional indemnity

The difference between medical malpractice and professional indemnity lies in the claim type, versus the insurance policy that may pay it out. Professional indemnity insurance is the policy that typically pays out claims for medical malpractice.

Our West Palm Beach medical malpractice lawyer from Lytal, Reiter, Smith, Ivey & Fronrath is experienced in these types of claims and can help you understand what you need to know if you have a claim against a medical provider.

What is medical malpractice?

Medical malpractice generally means any instance where a plaintiff can demonstrate that a practitioner caused harm through neglectful or intentional action or inaction. A simple mistake isn’t enough to constitute malpractice, and your medical malpractice lawyer will need to demonstrate that the action met the following criteria:

• You had a doctor-patient relationship.
• The doctor owed you a duty of care to avoid causing you harm.
• The doctor failed in that duty.
• The actions violated the accepted standard of care for a similar patient with a similar condition and health history.

These cases are often complex because providers will argue that your condition had other causes.

What is professional indemnity insurance?

Professional indemnity insurance is a form of professional liability coverage. It’s used by healthcare providers and other professionals when a claim is made over a mistake in their work. In Florida, this type of coverage protects people like doctors, lawyers, and business professionals when their services lead to a claim for damages.

Medical malpractice insurance is more specific. It applies to claims brought by patients for medical errors that caused harm. In Florida, doctors don’t always have to carry malpractice insurance if they can show they have the financial resources to cover a claim.

Under Florida Statutes § 458.320, doctors must pay judgments against them for up to $100,000 and have at least $250,000 in secured assets or medical malpractice insurance coverage to practice in hospitals.

How do medical malpractice and professional indemnity apply in different situations?

The difference matters most when you’re dealing with a real claim. Medical malpractice insurance typically applies when a patient is physically harmed during treatment. Professional indemnity coverage is broader and applies to mistakes made in professional services, including situations that lead to financial loss rather than physical injury.

Medical providers may purchase claims-based or occurrence-made malpractice policies. The difference is that a claims policy only works if the original insurer is the same one when a claim is filed. An occurrence policy covers the practitioner seamlessly, regardless of when the claim arises.

Medical professionals may use professional indemnity coverage as well as errors and omissions insurance (E&O). E&O applies to administrative mistakes that cause financial loss rather than physical harm. Both indemnity and E&O insurance help cover the practitioner’s legal defense costs.

Who is covered under professional indemnity policies?

Depending on the individual who takes out the policy, professional indemnity insurance covers legal claims arising from professional services for financial advisors, real estate agents, architects, and attorneys. In the healthcare field, it may cover a doctor, nurse, dentist, or any other medical caregiver.

How do claims work in malpractice cases compared to indemnity claims?

If the practitioner who harmed you carries these two types of insurance, how do you know which one to use for your claim? The answer is that medical malpractice coverage applies to physical injury or illness due to negligence in medical care. This might include missed diagnosis, incorrect treatment, or surgical errors.

Your lawyer will gather evidence showing how the provider failed to uphold the standard of care and caused you harm, with associated damages for your additional treatment and lost income. If your caregiver carries extended reporting (“tail” coverage) insurance, you may even be able to make a claim years after you discover the injury.

Professional indemnity claims don’t involve physical harm and focus on recovering financial loss resulting from a provider’s professional services. Your attorney can advise you as to which is best for your circumstances.

When does professional negligence lead to legal liability?

Negligence generally occurs when a person fails to uphold their duty of care to another as a reasonable person would. In professional negligence, a doctor or other professional disregards their duty to provide services or care in accordance with the standards of their field, causing someone financial harm. At that point, the victim can prepare a case to establish negligence and seek compensation for their losses.

Get clarity on your rights after professional negligence

When you suffer physical, emotional, or financial injury from a professional provider, you have the right to file a claim and recover payment for your losses. To arrange a free consultation with a West Palm Beach medical malpractice lawyer from Lytal, Reiter, Smith, Ivey & Fronrath, contact us online or call ​​(561) 655-1990 today.