Malpractice Insurance - Insurance for Malpractice South Africa

A type of liability cover, malpractice insurance protects professional (namely doctors and lawyers) from claims made by their clients for malpractice. If a client suffered damages or personal injury at the hands of a professional, he or she may claim damages in a court of law. The malpractice insurance policy will cover the insured’s legal fees and any damages awarded to the client.

Given the high risk of professionals, particularly doctors, malpractice insurance is essential and usually standard in an employment contract with a hospital or law firm. Malpractice insurance also exists for investors and financial advisors, though this is more commonly referred to as tax and finance or errors and omissions insurance.

The risk, and thus the premium, for malpractice insurance is not based on the claims history of the insured, but rather on the likelihood of claims being made in the future given the professionals practice and area in which he or she operates.