Medical malpractice insurance protects against a professional negligence claim where a treatment provided by a health care provider falls below the accepted standard of practice in the medical community and causes injury or death to the patient.
The regulatory authorities in various countries now are taking a serious view on medical practitioners who are held to be negligent in their professional duties. The patients or their relatives also sue the medical practitioners, should they believe that the treatment rendered was not effective on the patient. This could result in significant financial loss for hospitals, clinics and individual doctors who are engaged in the profession of medicine.
The medical malpractice cover helps such practitioners to manage the risks related to cases filed against them by the health authorities or the patients.