Professional Liability Insurance is the risk management tool used to protect someone who possesses a professional knowledge, or skill, special ability, education, or experience is usually designated as a professional.

1. Derek Siewert - Professional Liability Insurance Key Elements
Professional Liability Insurance is the risk management tool used to protect someone who
possesses a professional knowledge, or skill, special ability, education, or experience is
usually designated as a professional. Usually this person has ability above and beyond the
norm. There are certain professions that are of a professional nature come to mind quite
quickly such as; attorneys, doctors, engineers, and accountants.
A legal duty that is owed to someone,
a breach of that duty that was owed,
Some kind of injury or damage that is suffered by a third-party and
Finally there must be a connection or causality between the proximate cause of injury and
the legal duty owed.
Loss exposures from professional liability claims usually come from some type of contractual
liability or from advice related liability. The standard that is usually used in professional
liability claims is "what is the standard that is usual and customary and reasonable for that
profession in that situation in that locale". A doctor in downtown Manhattan might have a
different standard of professional conduct than a doctor out in a rural town in Wyoming.

2. Normally when a physician refers the patient to a specialist, the referring physician is off the
hook with regards to malpractice that might manifest from the specialist activities. Some of
the common claims against doctors are for such things as missed diagnoses or non-
diagnosis. Those kinds of claims are by far the most common malpractice claims against
doctors. There are obviously malpractice claims for improper surgical errors or improper
and incorrect use of drugs, chemicals and treatments for the patient.
Professional liability insurance typically covers the medical professional against claims and
damages arising from their professional acts or omissions and from acts and omissions of
their employees, assistants and fellow physicians in the practice. Almost all of these policies
are written on a claims made basis and are not written on the typical occurrence type
policy. Usually for an increase in premium, the doctor's malpractice insurance can have a
provision which allows a doctor to consent to settle versus the insurance company being
able to make a payment just to make the claim go away.
It is important in all professional liability policies to ascertain whether or not the defense
costs are included within the policy limits or are outside the policy limits. Clearly having the
defense cost outside the policy limits provides a lot more coverage than combining the
limits and the defense cost all into one amount. For doctors and physicians professional
liability policies can usually be written so that the insuring agreement covers the individual
doctor and/or physician and the organization that the doctor works for. Usually that can be
their private practice or the hospital.
There are some common defenses that doctors can use when it comes to professional
liability lawsuits and claims. One such defense is the statute of limitations. Depending on
the type of claim there can be a defense that the statute has run out. Most states have
contributory negligence laws which would allow the physician to be exonerated if the
claimant in any way contributed towards the claim. On almost all surgeries and there is an
informed consent and an assumption of risk form that is signed by the patient and that can
sometimes reduce or eliminate the risk for the doctor. Most states have Good Samaritan
statues whereby if the doctor is performing a medical service without compensation such as
in an emergency, that can allow the doctor to not incur a professional liability exposure.