Malpractice Insurance in Minnesota

Licensed professionals whose work can lead to allegations of professional negligence can face insurance concerns involving professional mistakes, negligence allegations, client or patient harm, defense costs, licensing complaints, and claims-made coverage. Understanding those exposures makes it easier to compare policies on more than price alone.

Insurance options can vary considerably between companies. Maverick Risk Partners can help clients in Minnesota compare available policies and review important differences in coverage, limits, deductibles, eligibility, and exclusions.

Why Is Malpractice Insurance Important?

Malpractice insurance is a form of professional liability coverage used by professions where an alleged error or failure to meet a professional standard can cause significant harm. The exact policy needed depends heavily on the profession and scope of services.

The goal is not simply to purchase a policy with the lowest premium. It is to understand the exposures involved and select insurance that fits the individual, property, vehicle, or business as closely as possible.

Malpractice Insurance Coverage Options

The appropriate coverage depends on the specific situation. Options may include some of the following protections.

Professional Liability Coverage

Malpractice coverage may help with certain covered allegations of negligence, errors, or omissions in professional services.

Defense Costs

Eligible legal defense expenses may be covered, although policies differ in whether defense costs reduce the available liability limit.

Claims-Made Coverage

Many malpractice policies are written on a claims-made basis, making the retroactive date and continuous coverage important.

Consent to Settle

Some professional liability policies include provisions addressing whether or how the insurer may settle a covered claim.

Licensing and Disciplinary Proceedings

Depending on the profession and policy, limited coverage may be available for certain licensing-board or disciplinary proceedings.

Malpractice Insurance FAQs

What is malpractice insurance?

Malpractice insurance is a form of professional liability designed for certain professionals whose services can lead to claims alleging negligence, errors, or failure to meet professional standards.

Does malpractice insurance pay legal defense costs?

Many policies provide defense for covered claims, but whether defense costs are inside or outside the liability limit depends on the policy.

What is a claims-made malpractice policy?

A claims-made policy generally responds when a claim is made during an active policy period, subject to the retroactive date and other reporting requirements.

What is tail coverage?

Tail coverage, or an extended reporting period, can allow certain claims to be reported after a claims-made policy ends for services performed while qualifying coverage was in force.