Malpractice insurance covers damages caused by the insured to third parties. It primarily compensates for damage resulting from negligence in the exercise of one’s profession.
What is Malpractice?
Malpractice is a professional error committed in the exercise of a medical or medico-pharmaceutical act, causing prejudice to the patient, and implying the civil liability of the medical staff and the provider of medical, sanitary, and pharmaceutical products and services.
This professional error can include imprudence, negligence, or insufficient medical knowledge, aspects that trigger the civil liability of medical personnel or medical service providers.
Areas of reference and responsibility
Malpractice applies especially in the medical and medico-pharmaceutical fields, concerning the following categories:
Medical personnel: doctors, dentists, pharmacists, nurses, midwives, etc.
Providers of medical, sanitary, and pharmaceutical products and services.
Types of liability
In cases of malpractice, the following types of liability may be incurred:
- Civil liability: for material and moral damage caused to the patient.
- Criminal liability: if the act constitutes a crime according to the law.
- Disciplinary liability: before professional bodies, such as the Romanian College of Physicians.
In Romania, only in the medical field is there clear, detailed legislation explicitly named “malpractice” (Law 95/2006).
For other professions, professional liability exists, but it is not formally called “malpractice” in normative acts.
“Malpractice” in other professions
When malpractice is broadly defined as: a serious professional error caused by negligence, imprudence, or incompetence, which causes prejudice to the client/service beneficiary.
Lawyering
Although not expressly regulated by law under this term, lawyers can be held civilly, disciplinarily, or criminally liable for:
• Wrong or negligent advice,
• Missing a procedural deadline,
• Inadequate representation,
• Breach of client confidentiality.
Liability can be engaged based on the Civil Code and the Statute of the Legal Profession.
Architecture/Engineering
An erroneous project, lack of technical verifications, or failure to comply with legal regulations can lead to material damage or even injuries. Liability can be civil or criminal.
Accounting or tax consulting
Calculation errors, incorrect reporting to ANAF (National Agency for Fiscal Administration), or omission of legal obligations can lead to significant financial damages. The consultant can be held civilly or professionally liable, especially if they are a CECCAR (Body of Expert and Licensed Accountants of Romania) member.
Education/Psychology
While it’s a less common topic, you can certainly discuss malpractice with a psychotherapist or psychological counselor. You might bring this up if the professional violates their deontological code or your confidentiality, or if the experience traumatizes you.
IT and cybersecurity
An IT specialist who makes a mistake in configuring a security system or incorrectly manages data can cause information leaks, data loss, or cyberattacks. Liability can be civil or contractual.
Topography and cadastral
Errors in measurements, incorrect drafting of documentation, or inconsistencies in plans can generate legal disputes over property and lead to the liability of the topographer/ANCPI (National Agency for Cadastral and Real Estate Advertising) authorized person.
Construction and installations
Inadequate execution of construction works, use of non-compliant materials, or omission of safety measures can lead to serious damage and civil or criminal liability.
Protection through professional liability insurance
Most professions that involve the risk of malpractice allow or even oblige practitioners to hold professional liability insurance. This insurance financially protects them in case a professional error causes prejudice to the client, beneficiary, or consumer.
Insurance for beneficiary (client, patient, consumer)
Legal protection insurance
Covers legal expenses if the beneficiary wishes to sue a professional (lawyer, doctor, architect, etc.). This coverage pays for lawyer fees, court fees, expert appraisals, and even damages if the policyholder loses a lawsuit (in some cases). Individuals or SMEs will find this especially useful.
Life or accident insurance with medical error clause
Some life or health policies may include additional clauses that offer compensation for damages from an erroneous medical act. Large insurers usually offer and customize these policies.
Property or works insurance (for clients in construction, IT, etc.)
If you benefit from professional services for a property, equipment, or IT system, you can take out your own insurance for that asset. If the professional causes damage, you can claim compensation more quickly from your own insurer, who will then recover the costs from the professional (subrogation).
Contractual guarantee insurance
In some fields (construction, technical services), the client may ask the provider to take out a performance bond. At the same time, the client can also take out insurance to cover losses if the contract is not completed.
Personal liability insurance
This does not cover damages caused by a professional, but it can be useful when the client is part of a legal dispute and there is also a risk of liability on their part.
How to protect yourself without insurance
If you’ve overlooked getting insurance as a beneficiary, you’re not defenseless. Here are your available options:
Written contract and clear clauses
Request a detailed contract that includes responsibilities, deadlines, penalties, and the professional’s obligation to hold insurance. Include clauses regarding dispute resolution (mediation, arbitration, court).
Requesting the insurance policy
The beneficiary has the right to request a copy or proof of the civil liability policy. If you suffer damage, you can use a broker to request compensation directly from the insurer, as permitted by law and your policy.
Complaint to the professional body
The College of Physicians, CECCAR, UNBR (for lawyers), OAR (for architects), etc. You can request a disciplinary investigation.
Court action
People can sue the professional in civil court for damages. Serious cases may lead to a criminal complaint (e.g., for bodily injury due to fault, professional negligence, or fraud).
Consumer protection
For certain services (e.g., financial consulting, IT, and online services), the beneficiary can appeal to the National Authority for Consumer Protection (ANPC).
Professional liabilities (Malpractice)
Regardless of whether you provide or benefit from professional services, you can effectively protect yourself against risks through adequate insurance. Professionals can use professional liability insurance to cover potential errors or omissions that may cause damage.
At the same time, beneficiaries can opt for legal protection insurance, life, property, or works policies. They offer you financial security and legal support if you suffer from an act of malpractice or defective execution.
In an increasingly complex professional environment, insurance is an essential tool for preventing and managing conflicts. It offers stability and trust for both parties involved.