Physical Therapist Liability Insurance
25 Terms to Know

Physical therapist liability insurance policy details can be confusing, overwhelming, or may even seem unnecessary.

Below is a list of professional liability insurance coverage terms that you should familiarize yourself with as you research PT malpractice insurance options.

Glossary of Common Terms You’ll Find in Physical Therapist Liability Insurance Policies

Assault Upon You – covers expenses which physical therapists can incur from a bodily injury or damage to their personal property resulting from an assault while traveling to and from their place of employment

Assets – a resource with economic value, whether that be completely monetary, or a material resource

Biomedical Defense – coverage that protects against claims alleging bodily injury or damage arising from biomedical waste

Claims-Made – A claims-made policy covers claims only while the policy is active. Claims must be both made and reported to the insurance company during the policy period for coverage to apply. Tail coverage may be necessary to extend coverage for claims reported after the policy period ends.

Consent to Settle – A provision in the insurance policy that allows the insured to have a say in whether or not a claim is settled. This provision typically requires the insurer to obtain the insured’s consent before settling a claim.

Damages Incurred – charges or punishment that a physical therapist is obligated to pay as a result of a malpractice dispute before malpractice insurance benefits are paid out?

Deductibles – the amount of money a physical therapist must pay before the insurance company will finance a claim

Defense Costs – The expenses associated with defending against a malpractice claim, including legal fees, court costs, and expert witness fees. Defense costs are typically covered by the malpractice insurance policy, in addition to the policy’s limit of liability.

Deposition Fee Coverage – financial assistance for fees that result from a deposition that the insured PT is required to attend

Employment Practices Liability – a type of liability insurance that covers wrongful acts arising from the employment process, including wrongful termination, discrimination, sexual harassment, and retaliation

Exclusions – Specific events, circumstances, locations or services that are not covered by the malpractice insurance policy. Exclusions may vary depending on the policy and insurer but typically include intentional acts, criminal acts, and certain types of professional misconduct.

Extended Reporting Period – also known as tail coverage, extends coverage for incidents that happened during the time you had your policy, but a claim was not filed until after the policy was expired or canceled

A – E

F – M

First Aid Coverage – financial help to insured PTs in the event of an emergency that requires immediate attention. Expenses can cover things such as the cost of an ambulance or emergency medical procedures

Good Samaritan Coverage – protects an insured off duty physical therapist who offer help in an emergency situation. They are protected from liability claims if an injury or accident occurs.

HIPAA Defense – covers expenses that result from HIPAA infractions

Incident – an event or occurrence that spurred a liability or medical malpractice claim

Insurance Claim – a request for benefit compensation as a result of a covered incident

Liable – legal responsibility for an action

License Defense Coverage – assists insured PTs with expenses incurred from protecting their professional license due to an investigation or proceeding originating from a malpractice claim

Loss of Earnings Coverage – provides assistance for lost wages, costs, and expenses due to an insured PTs required attendance at a trial, hearing, or arbitration proceeding as a defendant

Medical Payment Coverage – reimburses third parties for medical expenses incurred to treat injuries sustained arising from business activities

Negligence – the failure to exercise care that is reasonably expected of a physical therapist.

Occurrence – An occurrence policy covers claims for incidents that happened during the policy period, regardless of when the claim is filed. The coverage extends to any claim arising from an incident that occurred while the policy was in force, even if the policy has since expired or been canceled.

PT Insurance Policy – a contract between an insurer and a physical therapist who purchased insurance that details what the insurer is legally obligated to pay if an incident were to arise

Physical Therapy Professional Liability Insurance – also known as malpractice insurance, provides physical therapists with financial and legal protection from injuries and damages to patients and or property

Physical Therapists Malpractice Insurance – used interchangeably with physical therapist liability insurance, malpractice insurance for physical therapists is designed to protect PT professionals from claims of negligence or improper treatment

Premium – monthly or annual payment amount physical therapists pay for malpractice insurance

Retroactive Date – The date from which coverage under a claims-made policy is retroactively applied. Claims-made policies typically have a retroactive date that states when claims begin to be covered in time by the policy, regardless of when the claim is reported.

Risk Management – the process of mitigating the chances of something going wrong

Sexual Misconduct Coverage – provides indemnity to insured physical therapists for improper sexual misconduct claims including assault, harassment, defamation, or improper handling of misconduct allegations

Subrogation – The legal right of the insurance company to pursue recovery from third parties who are responsible for causing a loss that the insurer has paid. Subrogation allows the insurer to recover the amount it has paid out in claims from the party at fault.

Tail Coverage – Also known as extended reporting period coverage, tail coverage provides protection for claims made after a claims-made policy has expired or been canceled. It allows the insured to report claims for incidents that occurred during the policy period but were not reported until after the policy expired.

Workplace/Premises Liability – protects landowners and tenants when someone gets hurt on their property due to dangerous conditions

N – Z

Do You Need Malpractice Insurance?

Owning an individual physical therapy insurance policy in your own name is advised. When a physical therapist carries an individual PT malpractice insurance policy, they are minimizing risk to their personal assets or reputation. Before opting out of an individual malpractice insurance policy, make sure you know exactly what your employer’s liability policy covers and what your legal obligations are should you have to utilize the malpractice coverage under your employer’s policy.

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CM&F was founded over a century ago. Through up and down markets, CM&F’s dedication to physical therapists has never wavered. CM&F remains committed to making it easy and cost-effective to secure vital professional coverage with:

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