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Coverage against lawsuits that arise from medical errors, alleged errors or negligence in the treatment of patients by doctors, hospitals or other healthcare professionals or facilities.

Physicians and hospitals purchase coverage from commercial insurance carriers or from mutual insurance companies they have set up and own. Doctor's coverage is not generally experience rated; rater premiums are set according to a physician's specialty and geographical location. Hospitals pay according to location, care offered and to an extent, their experience rating. Most states require that doctors have malpractice insurance and doctors may need it to see patients in a hospital. Healthcare providers are not only subject to their own "mistakes or negligence", but face challenges in keeping up with new medical procedures, treatments, drugs and adequately communicating with patients.

Regulation of medical malpractice insurance vary by state and may affect claims activity and premiums. The different type of policies available are claims-made or occurrence.