This insurance is only for medical professionals and people in the healthcare industry. It guards against losses due to mistakes or negligence. This policy type protects insureds for losses resulting from injuries to third parties when a professional’s conduct falls below the profession’s standard of care. For example, if a doctor makes a mistake that other doctors of his specialty would not have made, his patient might sue him. A malpractice policy will pay his/her defense costs and any judgment or settlement.