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Malpractice Insurance Basics

By MedXL Editorial Team · Updated 2026-08-26 · 6 min read

Malpractice coverage is one of those subjects most physicians learn about only when a contract lands on their desk or a claim letter arrives. Yet the difference between two policy types, or one missing sentence about tail coverage, can amount to a very large personal expense. This article explains the core concepts in plain English so you can read a policy summary, ask sharp questions of an employer or broker, and know when to bring in a professional.

A necessary disclaimer up front: insurance products, protection organizations, and legal requirements differ by state, province, specialty, and employer, and they change over time. Use this as an orientation, and confirm specifics with a licensed insurance broker, your employer's risk management office, or a lawyer before making decisions.

Medical professional liability coverage, commonly called malpractice insurance, responds when a patient alleges that your care caused harm. In broad terms, a policy or protection arrangement typically provides:

In this guide

  • What malpractice insurance actually covers
  • Occurrence vs claims-made: the distinction that drives everything
  • Tail and nose coverage
  • How coverage works in Canada
  • Reading the numbers: limits, deductibles, and consent
  • Questions to ask before you sign anything
  • When to get professional help
  • Key takeaways
  • Physician Resources
  • MedXL Resource Centre