Professional Liability and Insurance Policies

Running head: PROFESSIONAL LIABILITY 1
Professional Liability and Insurance Policies
Student’s Name
Institution’s Affiliations
Date

PROFESSIONAL LIABILITY 2
Professional Liability and Insurance Policies
Introduction
Insurance is a formal agreement made by two groups to establish legal obligations for
both the insurer and the insured (Bauer, 2010). The purpose of the insurance policy signed is
to provide coverage for all economic risks and losses. The policy covers for people or groups
of people with common risks. The premiums are normally increased to ensure effective
coverage of the risks associated with the contract. The premiums are shared among the
involved participants with the common risks. The risks to be covered in the insurance policy
are grouped into different categories that include, liability, personal injury, and loss or
damage of property risks. Personal injury risks may occur due to an illness or an accident.
The liability risks to be discussed in this paper is typically professional because it deals with
the healthcare sector. It is important for health-care officers to take professional liability
insurance to protect themselves from hazardous practices (Bismark et al., 2013). Taking
professional liability policies is also important in enabling the employer to recover all losses
that may occur due to the negligence of employees. Professional liability policies secure the
employees from all malpractices in the profession.
Professional Liability for Healthcare Professionals
Analysis
The medical profession involves various practices that require experiences and skills
to ensure the safety of the patient and the practitioner. Malpractice usually occurs in the
medical profession, therefore, causing risks and injuries to either the staff of the patient. The
medical specialty society has provided various medical liabilities to guide professionals in
their daily practices and prevent the occurrences of the risks related to the medical
malpractices (Schwartz et al. 2013). One of the liability policies is medical malpractice