DEFINITION of 'Allied Healthcare Professional Liability Insurance'

Professional liability insurance that provides coverage for medical professionals who are not physicians. Allied healthcare professional liability insurance is often purchased by nurses, physicians’ assistants, midwives, dentists, physical therapists, and medical technicians. Allied healthcare professional liability insurance are often marketed through industry associations.

BREAKING DOWN 'Allied Healthcare Professional Liability Insurance'

While healthcare services are often associated with physicians, non-physicians provide a significant portion of healthcare. Assistants often provide some level of medical care in a hospital or healthcare facility, and may also visit patients in their homes. These healthcare workers may not be fully covered under the physician’s or healthcare facility’s liability policies.

Individuals seeking coverage are able to choose the amount of coverage that makes the most sense for the risks that they face, with liability limits set on a per incident level and also carrying an annual aggregate coverage limit. The policy may cover policyholders if they must defend their licenses, as well as other liabilities related to the activities of the non-physician.

For example, a home healthcare worker has a patient that he provides daily medical care. The patient is unable to visit a medical facility because she has mobility issues. While the insured worker was in another room the patient fell out of her wheelchair and hit her head. The family of the patient sued the healthcare worker for negligence claiming that if the worker stayed in the room, the injury could have been prevented. The healthcare worker’s allied healthcare professional liability insurance policy provided coverage during the lawsuit.

Applications for this type of insurance coverage may require proof of a supervising physician’s professional liability insurance. The application may also ask whether the applicant has practiced medicine without malpractice coverage, whether the applicant is licensed or has a permit to dispense drugs, and any other privileges the applicant may have with hospitals or other healthcare facilities.

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