Here's something that catches a lot of new medical practice owners off guard: your medical malpractice insurance doesn't cover everything that can go wrong at your office. If a patient trips over a loose carpet in your waiting room and breaks their wrist, that's not a malpractice claim—it's a general liability claim. And without the right coverage, you could be personally on the hook for tens of thousands in medical bills, legal fees, and potential settlements.
General liability insurance is the unsung hero of medical practice coverage. While malpractice insurance protects you from clinical mistakes, general liability handles the everyday operational risks that come with running a physical business. Whether you're opening your first practice or you've been seeing patients for years, understanding this coverage is essential for protecting your business assets and meeting your basic legal obligations.
What General Liability Actually Covers for Medical Practices
Think of general liability as the insurance that protects your practice from accidents and injuries unrelated to your professional medical services. It covers three main areas that every medical practice faces.
Bodily injury coverage handles situations where someone gets hurt on your property. Classic examples include slip-and-fall accidents in your lobby, injuries from a faulty waiting room chair, or someone getting hit by an automatic door that malfunctions. These are surprisingly common—patients distracted by their phones, elderly visitors with mobility issues, or children running around while parents check in. Your general liability policy steps in to cover their medical expenses, lost wages if they miss work, and your legal defense if they sue.
Property damage protection covers you if your business operations damage someone else's property. Maybe a pipe leaks from your second-floor office and ruins expensive equipment in the suite below. Or if you run a home health service, perhaps your aide accidentally knocks over and breaks a patient's antique lamp during a visit. These aren't hypothetical scenarios—they happen regularly in healthcare settings.
Personal and advertising injury is the third component, and it's broader than you might expect. This covers claims of libel, slander, copyright infringement, or invasion of privacy. In healthcare, this might come up if you accidentally use patient testimonials without proper consent, or if there's a defamation claim related to your marketing materials. It's not the most common type of claim, but when it happens, you'll be grateful for the coverage.
Standard Coverage Limits and What They Mean
Most medical practices carry what's called a $1 million/$2 million policy. Here's what those numbers actually mean for you. The first number—$1 million per occurrence—is the maximum your insurance company will pay for any single incident. If someone sues you for a slip-and-fall accident, your insurer will cover up to $1 million in medical bills, legal fees, and settlement costs for that one claim.
The second number—$2 million aggregate—is your total coverage for the entire policy year. This is the maximum your insurer will pay for all covered claims combined during your policy period. Once you hit that $2 million threshold, you're paying out of pocket for any additional claims until your policy renews. This aggregate limit is why some practices with higher risk exposure opt for umbrella policies to add an extra $1 million in protection.
These limits aren't arbitrary—they've become the industry standard because they're what most commercial landlords require. When you go to lease office space for your practice, your landlord will almost certainly ask for proof of general liability insurance with these exact limits before you can sign the lease. They want to make sure that if something happens on the property, there's adequate coverage to handle potential claims.
Most policies also include what's called medical payments coverage, typically set at $5,000 to $10,000. This is a smart feature that helps you avoid lawsuits altogether. If someone gets a minor injury at your office, this coverage pays their immediate medical expenses regardless of who was at fault—no lawyers, no depositions, no drama. You'd be surprised how often a quick $3,000 payment for an emergency room visit prevents a $50,000 lawsuit.
Why You Can't Skip This Coverage (Even If You Have Malpractice Insurance)
This is where a lot of medical professionals get confused. You already have medical malpractice insurance that costs a small fortune every year—why do you need another liability policy? The answer comes down to a critical distinction in how these policies work.
Medical malpractice insurance covers clinical negligence—mistakes that arise from providing professional healthcare services. Misdiagnosis, surgical errors, medication mix-ups, delayed treatment decisions. These are acts of professional judgment that went wrong. Your malpractice carrier defends your clinical reputation and professional decisions.
General liability insurance covers ordinary negligence—the everyday accidents that could happen at any business open to the public. These have nothing to do with your medical expertise. A wet floor, a broken handrail, a pothole in your parking lot. These are premises liability issues, not medical errors. If you try to file a slip-and-fall claim under your malpractice policy, you'll get denied. It's simply not what that policy is designed to cover.
The two policies work together, not in place of each other. Your malpractice insurance protects you from professional risks. Your general liability insurance protects you from operational risks. You genuinely need both to have comprehensive coverage for your practice. Trying to save money by skipping general liability is a false economy—you're leaving yourself exposed to common, expensive claims that malpractice won't touch.
The Certificate of Insurance Requirement You'll Face
When you're ready to lease your first medical office space, your landlord is going to ask for something called a Certificate of Insurance (COI) before you can sign the lease. This is a one-page document from your insurance company that proves you have active general liability coverage with the required limits.
The certificate shows your specific types of coverage, policy limits, effective dates, and any additional insureds. Most landlords require minimum coverage of $1 million per occurrence and $2 million aggregate, and they'll usually ask to be named as an additional insured on your policy. This protects them if they get pulled into a lawsuit related to an incident at your practice. You'll need to provide an updated certificate annually when your policy renews—it's a standard part of maintaining a commercial lease.
Some landlords also require workers' compensation, commercial auto liability if you have company vehicles, and proof of your professional liability coverage. These insurance requirements are typically negotiable during lease negotiations, so it's worth having an insurance professional or attorney review the lease terms before you commit. Don't wait until the last minute to secure coverage—get your policies lined up before you start serious lease discussions.
How to Get Started with Coverage
Shopping for general liability insurance is more straightforward than getting malpractice coverage. Many insurance carriers offer business owner's policies (BOPs) that bundle general liability with commercial property insurance at a discount. For a small medical practice, you're typically looking at a few hundred to a couple thousand dollars per year, depending on your location, office size, and number of employees.
Start by getting quotes from insurance agents who specialize in medical practices. They understand the unique risks healthcare providers face and can recommend coverage that fits your specific situation. Be prepared to provide details about your practice location, square footage, number of employees, annual revenue, and any higher-risk features like surgical suites or imaging equipment.
The market for medical liability insurance has been tightening in recent years, with some signs pointing toward a harder market in 2025 and beyond. This means premiums could increase and coverage might become more selective. Don't procrastinate on securing your coverage—get policies in place early, and review them annually to make sure your limits still align with your lease requirements and business growth.
General liability insurance isn't the most exciting part of running a medical practice, but it's absolutely essential. It protects your business assets from common accidents, satisfies your lease requirements, and gives you peace of mind that you're covered for risks that fall outside your malpractice policy. Whether you're just starting out or expanding your practice, make sure general liability is part of your insurance foundation. Your landlord requires it, your business needs it, and frankly, you'll sleep better knowing it's there.
