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5 Common Misconceptions About Medical Malpractice Insurance

Medical malpractice insurance protects healthcare professionals and medical practices when mistakes happen. However, misconceptions about this type of coverage often lead to confusion and, in some cases, costly mistakes. As a Maryland small business insurance agency specializing in medical practices, we understand providers’ unique challenges. Below, we will discuss five common myths about medical malpractice insurance. 

Misconception 1: “Medical Malpractice Insurance Is Only for Doctors”

It can be easy to assume that medical malpractice insurance is exclusively for physicians. However, this couldn’t be further from the truth. Medical liability covers many different types of healthcare professionals, including nurses, therapists, physician assistants, and even healthcare facilities.

For example, a small medical practice in Baltimore might employ various professionals who interact with patients daily. Each team member could potentially face a malpractice claim, making comprehensive coverage vital. Our Maryland small business insurance agency makes sure that all healthcare professionals are well protected. This helps reduce risks for everyone.

Misconception 2: “It’s Too Expensive for Small Practices”

Another common belief is that malpractice insurance is prohibitively expensive, especially for small practices. While it’s true that premiums can vary depending on factors like specialty, location, and claim history, there are also more affordable options. Not having insurance can be much costlier if a claim arises. Working with a trusted insurance agency helps you find the best solution for your budget without compromising coverage.

Misconception 3: “General Liability Insurance Covers Malpractice Claims”

Most businesses understand they need general liability insurance. However, this insurance does not cover professional mistakes or negligence. These issues are the main reasons for most malpractice claims. General liability typically addresses issues like property damage or slip-and-fall accidents on your premises, but malpractice insurance specifically protects against claims related to professional services.

For example, if a patient files a lawsuit alleging improper treatment, general liability insurance won’t help. Medical malpractice insurance is the specialized coverage you need in this situation. It helps defend against claims and protects your practice’s reputation and finances. Partnering with a Maryland small business insurance agency ensures you have the right coverage for every scenario.

Misconception 4: “I’ll Never Face a Malpractice Claim”

Many healthcare professionals believe they’ll never be sued, especially if they have an excellent track record and a strong patient rapport. While these factors can reduce risk, they don’t eliminate it so professional liability insurance is key. Malpractice claims can arise from unforeseen circumstances, miscommunication, or even a dissatisfied patient—regardless of the quality of care provided.

The risk of a claim is always on the horizon so it’s important to have different types of insurance to cover all scenarios. Protecting your practice with malpractice insurance gives you peace of mind, knowing you’re prepared for the unexpected. Investing in insurance coverage now is better than facing significant financial and legal repercussions later.

Misconception 5: “All Policies Are the Same”

Not all medical malpractice insurance policies are created equal. Coverage limits, exclusions, and policy types can vary widely. For instance, a claims-made insurance policy covers incidents only if the claim is filed while the policy is active, or within any extended reporting period, whereas occurrence insurance policies provide coverage for incidents that occurred during the policy period, regardless of when the claim is filed. A Maryland small business insurance agency like ours can help you customize your malpractice insurance to align with your practice’s needs and ultimately select a policy that offers the right protection.

Why Choosing the Right Insurance Partner Matters

The intricacies of medical malpractice insurance can be overwhelming, but you don’t have to do it alone. Our trusted insurance experts at Unity Insurance specialize in helping healthcare providers secure comprehensive coverage that protects their practices, employees, and patients. Whether you’re a small practice or a larger facility serving multiple locations, we’re here to help you mitigate risks and focus on what matters most: delivering exceptional care. Contact us today to learn more about how we can support your practice with tailored solutions.