What is the primary purpose of professional liability insurance?

The primary purpose of professional liability insurance is to protect healthcare providers against claims of negligence or malpractice. This type of insurance is specifically designed to cover legal costs and damages that may arise from lawsuits filed by patients or their families, alleging that the healthcare provider failed to meet the standard of care in their profession.

Healthcare professionals face the risk of litigation due to the nature of their work, which often involves complex decision-making and the possibility of adverse patient outcomes. Professional liability insurance provides financial protection, allowing providers to defend themselves in court and paying for settlements or judgments resulting from malpractice claims.

The other choices do not accurately reflect the main function of this type of insurance. While property damage claims and patient satisfaction are important in healthcare, they are not the focus of professional liability insurance. Additionally, malpractice insurance for patients is not a common concept, as it is the providers who require coverage to protect against claims made against them for their professional actions.