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Everything You Need to Know About Your Coverage

What is professional liability insurance? 

What the insurance industry refers to as professional liability insurance, you are probably more familiar with as malpractice insurance. Professional liability helps protect you from claims that allege an error committed in the performance of your professional services resulted in some form of damages/harm. While malpractice claims typically involve a physical injury, they can include violating a patient’s rights, verbal abuse or unprofessional conduct. Your HPSO policy covers you around the clock every day of the week and travels with you from one job to the next.1 

Most licensed healthcare professionals, including physicians, nurses, physical therapists, pharmacists and counselors carry professional liability to help protect their careers, reputations and finances from potential malpractice allegations. 

What are the dollar limits of my coverage? 

HPSO professional liability insurance offers several levels of coverage. Many of our insureds select $1 million of coverage for lawsuits alleging malpractice. The $3 million ‘aggregate’ limit you see on your certificate of insurance means it will pay up to $1 million per claim, not to exceed $3 million in claims per year. Please check your certificate of insurance for your policy limits. If you’d like to raise or lower your limits, please call us at 1-800-982-9491, Monday through Friday, 8:00 a.m. to 6:00 p.m. ET. 

How much do nurse’s malpractice claims cost? 

According to the most recent HPSO and CNA liability claim reports, the average cost of a malpractice claim against a pharmacist cost is $136,000, while the total cost for claims against a counselor average $113,642, and $134,761 against physical therapists. When you look back at previous HPSO/CNA reports, you will find malpractice costs on the increase. 

Even in a frivolous lawsuit, you still need an attorney to defend your interests. In one such case, though the provider was proven not guilty, it took 12 years to resolve and cost $500,000 in legal fees.3  
With medical malpractice lawsuits taking anywhere from months to years to resolve—the cost for legal expenses can at times outweigh the cost for the malpractice payment. 

What other types of claims does my professional liability cover? 

Your professional liability insurance includes a dozen coverage extensions that pay for expenses such as the cost to hire an attorney for a deposition, defendant expenses like lodging and travel, and fines associated with HIPAA privacy violations.   

One of the most commonly used coverage extensions is License Protection. 

A policy through HPSO includes up to $25,000 of license protection coverage that allows you to hire an attorney to help you craft a written response to your state board and accompany you to any hearings. Having an attorney at your side can be the difference between losing and keeping your professional license.   

Professional liability coverage extensions include: 
  • $25,000 Sexual Misconduct/Abuse 3 
  • $25,000 Information Privacy (HIPAA) Fines and Penalties 
  • $25,000 Defendant Expense Benefits 
  • $25,000 Workplace Violence 
  • $10,000 Deposition Representation 
  • For a full list of coverage extensions, click here and then select your profession.

How do you get in touch with us? 

Our website,, is full of helpful information. If you can’t find what you’re looking for, give us a call at 1-800-982-9491, Monday through Friday, 8:00 a.m. to 6:00 p.m. ET. This is the same number you would use to report a claim. If you believe you may have been involved in an incident, call us. We’ll let you know what to do, plus you’ll feel a lot better. 

A good idea is to store our number in your phone. That way, if you have a question or a concern, whether it be about your coverage, billing, or a potential claim, we are at your fingertips. 
1 Coverage is available for incidents that occur on the job and after hours as well. Your insurance remains in force even if you change jobs or during a period of unemployment. Helps insure you anywhere in the world provided a claim is brought against you in the United States, its territories and possessions, Puerto Rico, or Canada. 
2 All descriptions, summaries or highlights of coverage are for general informational purposes only and do not amend, alter or modify the actual terms or conditions of any insurance policy. Coverage is governed only by the terms and conditions of the relevant policy.

3 Sexual Misconduct coverage not available in New York. Assault coverage not available in Texas.
This publication is intended to inform Affinity Insurance Services, Inc., customers of potential liability in their practice. This information is provided for general informational purposes only and is not intended to provide individualized guidance. All descriptions, summaries or highlights of coverage are for general informational purposes only and do not amend, alter or modify the actual terms or conditions of any insurance policy. Coverage is governed only by the terms and conditions of the relevant policy. Any references to non-Aon, AIS, NSO, HPSO websites are provided solely for convenience, and Aon, AIS, NSO and HPSO disclaims any responsibility with respect to such websites. This information is not intended to offer legal advice or to establish appropriate or acceptable standards of professional conduct. Readers should consult with a lawyer if they have specific concerns. Neither Affinity Insurance Services, Inc., HPSO, nor CNA assumes any liability for how this information is applied in practice or for the accuracy of this information.

Healthcare Providers Service Organization is a registered trade name of Affinity Insurance Services, Inc., a licensed producer in all states (TX 13695); (AR 100106022); in CA, MN, AIS Affinity Insurance Agency, Inc. (CA 0795465); in OK, AIS Affinity Insurance Services, Inc.; in CA, Aon Affinity Insurance Services, Inc., (CA 0G94493), Aon Direct Insurance Administrators and Berkely Insurance Agency and in NY, AIS Affinity Insurance Agency.