Provides protection for claims against you if you inadvertently breach privacy laws, such as laws relating to patient records.
Medical Indemnity - Practice
Medical practices are diversifying to provide a number of different medical services. This variation in business activity, along with other factors like the practice company structure, can create heightened liability risks to the business that are not covered by an individual doctor’s Medical Indemnity Insurance policy.
Practice Medical Indemnity Insurance is designed to minimise gaps in cover to safeguard and create financial stability for the future of your practice.
Medical Indemnity Insurance provides protection for medical practices and companies as distinct from individual practitioners Medical Indemnity policies that doctors have in place.
Medical Indemnity Insurance is necessary to cover your medical practice for:
- Claims for compensation and complaints made against them and the costs to defend these claims
- Cover for non-medical employees who are not legally required to take out their own indemnity policy e.g. receptionist, practice manager, nurse etc.
- Vicarious liability for the acts of employed doctors, contractors or consultants of the practice i.e. health professionals, locums
With Medical Indemnity cover in place, your practice will be in a position to mitigate significant risk exposures that if left uninsured, could threaten the financial viability of your practice.
Whether you’re a suburban Medical Practice, or a large corporate employing a significant number of doctors, we can help tailor a Medical Indemnity arrangement for your practice.
Please Note: Below are some of the more common insurance policy features, however, the list is not exhaustive and some features may not be offered by certain insurers. Please refer to the insurer-specific policy wording for inclusions, exclusions, terms and conditions.
Covered Features
Privacy Complaints
Inquiry Costs
Covers the costs associated with your attendance at inquiries into your professional conduct.
Advertising Expenses
The cost of hiring a public relations firm to prevent or limit the adverse effects of negative publicity to your reputation.
Employment related matters
Provides cover to defend the practice against employment related disputes with employees or contractors.
Good Samaritan Acts
Covers your liability where you or one of your employees render or fail to render first aid and assistance in an emergency situation or accident.
Contractors & Consultants
Provides cover for vicarious liability for the acts of contractors and consultants.
Statutory Liability
Provides cover for costs at proceedings brought under OH&S or environmental law and, to the extent permitted by law, fines imposed under that law or other compensatory civil penalties.
FAQ's:
Medical Indemnity Insurance covers a practice entity for claims for compensation and complaints made against them and for the costs to defend these claims. It also provides cover for the non-medical employees of the clinic who are not legally required to take out their own indemnity policy i.e. receptionists.
No, most individual medical indemnity policies only cover a sole practitioner, therefore a separate policy would have to be purchased to cover the practice entity providing services to doctors and other health professionals or companies for a fee.
If nurses employed by the practice, they will be covered under the practices medical indemnity policy.
Some examples of recent claims and the cost associated are:
- A Claim was made against a health clinic after the clinic filed a report rather than providing it to the treating doctor. The legal costs were in the vicinity of $17,000 and $165,000 was awarded in damages.
- A claim was made against a radiology clinic after a patient sustained injuries after falling from a table. The legal costs totally $85,000 and damages of $135,000 were awarded to the patient.
- A claim was made against a day surgery as a result of a burn to the eye sustained by a patient during a procedure administered by an employee. A resident ophthalmic surgeon on site examined the patient as soon as possible but remedial action was unsuccessful. Legal costs amounted to $40,000 and damages of $200,000 were awarded.
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