A medical professional liability insurance policy shelters bodily injury or property damage as well as liability for personal injury such as mental suffering. The difficulty involved in realizing carelessness results in a higher percentage of premium dollars going toward defense and cost control expenses. Medical liability insurers spend large funds investigating and defending claims where there is an adverse patient outcome not resulting from negligence. There are two basic types of malpractice insurance—occurrence or claims-made. A claims-made form basis where a policy in effect at the time a claim is reported responds for the loss, while the policy remains in force and during any applicable extended reporting period.
