Are Medical Malpractice And E&O Insurance The Same?
Insurance can be a very complicated subject. While it is very complex, it is something that businesses in Ontario cannot go without. If you want to make sure that you, your business, your employees, and your clients are protected, you are going to have to obtain the right insurance. While there are tons of different insurance providers along with different polices, the most important thing to remember is that they are not all created equally. Some polices will protect you against certain lawsuits that are caused by bodily or property damage, whereas others will protect you against lawsuits that are a result of misinformation or mistakes on your company’s behalf.
Understanding E&O Insurance
There are certainly many similarities associated with errors and omissions insurance and other types of insurance products. Nonetheless, they’re also very much different. E&O insurance is more suitable for certain types of businesses, while medical malpractice tends to be more desirable among medical professionals. At the same time, the specific types of protections provided change from E&O to medical malpractice. E&O is designed to protect the business from mistakes that result in financial loss.
If you provide a service to the consumer and charge a fee, then you face some degree of risk. If the service is not completed properly or within a timely manner, this could result in the client losing money. Alternatively, their reputation may be damaged. In both situations, the client will blame you and they’ll file a lawsuit to try and recover their losses. This is where errors and omissions insurance will be helpful.
What Is Medical Malpractice Liability Insurance
Owning a business in the medical healthcare field can be very rewarding. You get to help people and make them smile on a daily basis, but sometimes mistakes happen and this can make the industry very risky. This is why medical malpractice insurance is a must for any healthcare business owner or service provider. Fighting a malpractice lawsuit can be time consuming and expensive with all the associated court costs and lawyer fees. This is not to mention what will happen if the opposing party wins the suit. Even if you win the lawsuit, you are still going to be out quite a bit of money in court costs and lawyer fees alone.
Medical malpractice liability insurance protects healthcare professional like doctors, dentist, and nurses from mistakes and errors that result in bodily harm to a patient. It can also protect the medical professional against any mental anguish charges.
Both Are Often Required
It is also important to remember that medical malpractice insurance and errors and omissions insurance are both frequently required in the province of Ontario. Canadian physicians, who wish to offer their services to Ontario residents, will be required to acquire medical liability insurance. This insurance can be obtained directly from the Canadian Medical Protective Association, or CMPA. Once the physician has paid their membership fee to join the CMPA, they will be provided with protection in the event of medical malpractice lawsuits.
On the other hand, errors and omissions insurance is generally obtained through a 3rd party insurance provider or broker. Nonetheless, both types of insurance are commonly required!