If you're in a profession where you offer professional services directly to another person, you're at risk of making a mistake and being sued. That's why professionals like you need malpractice insurance.

Fortunately, a Tennessee independent insurance agent is an expert in business insurance and knows where to find affordable malpractice coverage. They'll analyze your risks and can find any gaps in your current coverage. 

What Is Tennessee Malpractice Insurance? 

Malpractice insurance is a type of business insurance designed for people who offer professional services. This can include medical staff, construction workers, accountants, chiropractors, lawyers, and even cosmetologists. 

Often referred to as professional liability insurance or errors and omissions insurance, it will help pay for the legal costs if you are sued for physical, financial, or emotional malpractice. 

Three reasons you should consider medical malpractice insurance

What Does Malpractice Insurance Cover in Tennessee?

If you're involved in a malpractice liability claim, your malpractice insurance will cover a variety of legal fees, including settlement costs, court fees, and legal defense. It will also pay for damages if you're found guilty.

People sue for malpractice for a variety of reasons, but some common scenarios include:

• A surgeon who makes a mistake during a surgery.
• A construction company that poorly builds something that ends up hurting someone.
• A lawyer who gives bad advice.
• A hair stylist who accidentally dyes someone's hair pink before a wedding.

Should you get sued for any of these scenarios, or others where a current or past client claims you caused them physical, emotional, or financial harm, your malpractice insurance will step in.

What Doesn't Malpractice Insurance Cover in Tennessee?

Malpractice insurance will cover nearly any professional error, but it excludes claims related to sexual misconduct, criminal acts, and alteration of medical records. 

You'll also receive different coverage based on the type of malpractice insurance your Tennessee business has. There are two types of malpractice insurance:

• Claims-made policy: Only provides coverage if the policy was in effect when the event took place as well as when the lawsuit was filed. 
• Occurrence policy: Covers any claim for an event that took place during the period of coverage, even if the lawsuit is brought outside the period of coverage.

Insurance expert Paul Martin explained that it's important to understand the distinction between the two policies. 

"You can still be sued, even after you retire. If you only have a claims-made policy, then your insurance will not cover any of the expenses related to the lawsuit. Fortunately, you can attach a 'tail' onto the end of your claims-made policy that will extend for however many years you choose so that someone can't come back and sue you," said Martin.

How Much Is Malpractice Insurance in Tennessee?

Since every business is different, there's no specific price tag for malpractice insurance. Premium costs will vary depending on the type of professional services you offer, how long you need insurance for, and your risks.

The riskier the type of business you're in, the more you're likely to pay for malpractice insurance. A doctor will pay more than a cosmetologist. 

Five most expensive medical malpractice policies by specialty in Tennessee

Your Tennessee independent insurance agent can provide you with an estimate on malpractice premium prices and provide insight into possible discounts.

What Is Lawyer Malpractice Insurance in Tennessee?

One of the most common malpractice insurance policies is for lawyers. 

Lawyers are at high risk of being sued by clients for a number of reasons, including failing to represent a client to their expectations, failing to present the facts of a case in the client's best interest, offering poor legal advice, conflicts of interest, administrative errors, and missed deadlines. 

If you're sued for any of these reasons, your malpractice insurance would cover the legal fees. 

Traditional business policies will include general liability, property damage, personal injury protection, and business interruption insurance, but none of these will cover a claim directly related to how you practice law. Lawyer malpractice is insurance for the practice side of your firm.

How a Tennessee Independent Insurance Agent Can Help

Malpractice insurance comes in many shapes and sizes, and knowing what's best for you can be difficult to nail down. Tennessee independent insurance agents are experts in business insurance. This means they can understand what coverage you already have and where you need to fill the gaps.

They'll also shop multiple carriers and provide you with a variety of policy quotes. Should you ever need to use your malpractice insurance, they can walk you through the claims process. They're there from the beginning and long after you're insured. Work with an independent insurance agent in Tennessee today.