Reminder: does your professional liability insurance include coverage for board actions?

This is a friendly reminder: if you have professional liability insurance, it is a good idea to make sure it covers board complaints.

Some clinicians are shocked to discover that their professional liability (sometimes known colloquially as “malpractice insurance”) policy does not cover license complaints.

Most policies provide basic coverage in case you are sued in civil court.  This is usually what practitioners think about when they think of “malpractice insurance.”  If your patient files suit alleging that you violated your professional responsibilities, your professional liability coverage will usually provide coverage.

Board complaints, however, may be another matter.  Board complaints are handled quite differently than civil suits.  Licensing boards are administrative agencies, and because of this professional liability policies treat them differently.  Some professional liability policies provide limited basic coverage for board complaints, whereas others only provide coverage as a rider or option on the basic policy.

When confronted with a licensing board investigation, many clinicians contact their professional liability carrier only to be informed that they have no coverage for these complaints.  The extent to which professional liability policies cover board complaints vary widely.

Here’s a tip: find out if you have coverage. Find out if your policy covers “licensing board complaints” or “administrative actions.”  If not, get coverage; the cost is usually minimal and worth the expense.

IMPORTANT: This website is for basic information only. Nothing in this website should be construed to be formal legal advice, nor does it create an attorney-client relationship. Please see the “Important Information” page at the top of the screen.