Breaking down Medical Malpractice Indemnity

Breaking down Medical Malpractice Indemnity

Breaking down Medical Malpractice Indemnity

17 Aug 2021

As a doctor within the UK, it is a mandatory GMC requirement to arrange Medical Indemnity coverage

As a doctor within the UK, it is a mandatory GMC requirement to arrange Medical Indemnity coverage: "You must make sure that you have adequate and appropriate insurance or indemnity arrangements in place covering the full scope of your medical practice in the UK. "Frustratingly, the GMC does not specify how much or what type of Indemnity is required but instead state: "The cover you need is very much dependent on your circumstances and must be in place by the time you begin to practise." This article explores what Medical Indemnity is, why it's required, and what types of indemnity options are available to you (within different sectors).

What is Medical Indemnity or Medical Malpractice Insurance?

Medical Indemnity (often referred to as Medical Malpractice insurance) is a particular type of professional liability coverage that protects medical professionals against any liability (or allegations) arising from the treatments, advice, or care that has been provided to patients that ultimately results in a patient's injury, death, or mental anguish. This can include (but is not limited to): Negligence Misdiagnosis or failure to diagnose Incorrect treatments, Prescriptions errors Surgical errors, Medical Malpractice claims and the costs of representation (through defence) has been dramatically rising over the last ten years, making litigation a significant consideration within the sector. Even in circumstances of a successful defence of a case, only a minimal number of legal systems allow defence costs to be recouped, leaving the defensive party (healthcare organisations and medical professionals) exposed to the financial loss. This is fuelled further by the no-win, no-fee culture that currently exists in the claim environment.

How much and what type of Indemnity do you need?

For understanding purposes, we will go through 2 of the main sectors for which Indemnity is required, at variable levels: Medical Professionals within the NHS (including GP's) Medical Professionals within Private Practice.

  • Within the NHS

  • Within Private Practice

Medical Defence Organisations (Occurrence based coverage)

Medical Defence organisations (MDO's) are not-for-profit organisations that provide medical Indemnity and medicolegal advice to subscribing members. The following points highlight some of the coverage aspects to be taken into consideration with Medical Defence Organisations. MDO's provide Indemnity on a discretionary basis – legal and financial support is provided at the discretion of the MDO and is not backed by an insurance contract between the healthcare professional and the MDO. MDO's provide Indemnity on an occurrence form, meaning that incidents during the policy period are covered regardless of when the negligence claim is made. Since policy form is on an occurrence basis, there is no requirement to arrange Run-Off cover if the cover is stopped. In the event of a claim or when providing support to members, MDO's do not require members to pay an excess. Medical Defence Organisations are internally regulated only and are not regulated by any external bodies. MDO's do not provide any supplementary coverages or extensions.

Commercial Insurers (via specialist insurance brokers)

There are a host of commercial insurers that offer medical Indemnity insurance. Indemnity policies through commercial insurers must be arranged through specialist brokers who should have a robust understanding of the market, policies, and coverages. The broker works on behalf of their medical professionals and arranges bespoke coverages through insurers that meet the specific requirements of their clients. It is the broker's duty to highlight policy specifics, exclusions, and critical information's to the medical professionals. The following points highlight some of the coverage aspects to be taken into consideration with insurers: All insurance policies are contract-certain – insurer is contractually obliged to compensate for claims, representation, and support by making a money payment as per the terms and conditions outlined in the policy. Claims made cover, covers incidents that occur during the policy period, provided that the claim is made and reported prior to the end of this period. Once the policy has lapsed, no cover will be offered in respect of new claims not reported during the policy or membership period. Run-off cover is necessary to remain protected against any further accumulated claims but not reported during the active policy period. Regulated and overseen by the Financial Conduct Authority (FCA) & the Prudential Regulatory Authority (PRA).Bound by "treating the client fairly" (TCF). FSCS backed insurance contracts. Inclusive additional extensions of cover (varies from insurer to insurer) e.g. Public Liability Cover, Libel & Slander cover, Reputational Damage cover, Defamation cover, Tax Protection cover, Criminal Proceedings cover etc. If you are unsure what kind of policy you have and are worried you may have accepted discretionary cover over contractual, get in touch with us today to answer any questions about your policy. Please note that the information in this article is not intended to be used or relied upon as a replacement for legal or professional advice. Please make appropriate arrangements to check your policies thoroughly with your professional or legal representatives.

As a doctor within the UK, it is a mandatory GMC requirement to arrange Medical Indemnity coverage: "You must make sure that you have adequate and appropriate insurance or indemnity arrangements in place covering the full scope of your medical practice in the UK. "Frustratingly, the GMC does not specify how much or what type of Indemnity is required but instead state: "The cover you need is very much dependent on your circumstances and must be in place by the time you begin to practise." This article explores what Medical Indemnity is, why it's required, and what types of indemnity options are available to you (within different sectors).

What is Medical Indemnity or Medical Malpractice Insurance?

Medical Indemnity (often referred to as Medical Malpractice insurance) is a particular type of professional liability coverage that protects medical professionals against any liability (or allegations) arising from the treatments, advice, or care that has been provided to patients that ultimately results in a patient's injury, death, or mental anguish. This can include (but is not limited to): Negligence Misdiagnosis or failure to diagnose Incorrect treatments, Prescriptions errors Surgical errors, Medical Malpractice claims and the costs of representation (through defence) has been dramatically rising over the last ten years, making litigation a significant consideration within the sector. Even in circumstances of a successful defence of a case, only a minimal number of legal systems allow defence costs to be recouped, leaving the defensive party (healthcare organisations and medical professionals) exposed to the financial loss. This is fuelled further by the no-win, no-fee culture that currently exists in the claim environment.

How much and what type of Indemnity do you need?

For understanding purposes, we will go through 2 of the main sectors for which Indemnity is required, at variable levels: Medical Professionals within the NHS (including GP's) Medical Professionals within Private Practice.

  • Within the NHS

  • Within Private Practice

Medical Defence Organisations (Occurrence based coverage)

Medical Defence organisations (MDO's) are not-for-profit organisations that provide medical Indemnity and medicolegal advice to subscribing members. The following points highlight some of the coverage aspects to be taken into consideration with Medical Defence Organisations. MDO's provide Indemnity on a discretionary basis – legal and financial support is provided at the discretion of the MDO and is not backed by an insurance contract between the healthcare professional and the MDO. MDO's provide Indemnity on an occurrence form, meaning that incidents during the policy period are covered regardless of when the negligence claim is made. Since policy form is on an occurrence basis, there is no requirement to arrange Run-Off cover if the cover is stopped. In the event of a claim or when providing support to members, MDO's do not require members to pay an excess. Medical Defence Organisations are internally regulated only and are not regulated by any external bodies. MDO's do not provide any supplementary coverages or extensions.

Commercial Insurers (via specialist insurance brokers)

There are a host of commercial insurers that offer medical Indemnity insurance. Indemnity policies through commercial insurers must be arranged through specialist brokers who should have a robust understanding of the market, policies, and coverages. The broker works on behalf of their medical professionals and arranges bespoke coverages through insurers that meet the specific requirements of their clients. It is the broker's duty to highlight policy specifics, exclusions, and critical information's to the medical professionals. The following points highlight some of the coverage aspects to be taken into consideration with insurers: All insurance policies are contract-certain – insurer is contractually obliged to compensate for claims, representation, and support by making a money payment as per the terms and conditions outlined in the policy. Claims made cover, covers incidents that occur during the policy period, provided that the claim is made and reported prior to the end of this period. Once the policy has lapsed, no cover will be offered in respect of new claims not reported during the policy or membership period. Run-off cover is necessary to remain protected against any further accumulated claims but not reported during the active policy period. Regulated and overseen by the Financial Conduct Authority (FCA) & the Prudential Regulatory Authority (PRA).Bound by "treating the client fairly" (TCF). FSCS backed insurance contracts. Inclusive additional extensions of cover (varies from insurer to insurer) e.g. Public Liability Cover, Libel & Slander cover, Reputational Damage cover, Defamation cover, Tax Protection cover, Criminal Proceedings cover etc. If you are unsure what kind of policy you have and are worried you may have accepted discretionary cover over contractual, get in touch with us today to answer any questions about your policy. Please note that the information in this article is not intended to be used or relied upon as a replacement for legal or professional advice. Please make appropriate arrangements to check your policies thoroughly with your professional or legal representatives.

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Broker at Lloyd’s SLM1389

© 2024 Servca


Servca Group Ltd is a private limited company registered in England and Wales; Registered Number: 7727494; Registered Office: Dukes House, 32-38 Dukes Place, 5th Floor, London, EC3A 7LP, United Kingdom. Authorised and regulated by the Financial Conduct Authority. Servca European Insurance Brokers Ltd (a private limited company incorporated in Malta and enrolled to act as an insurance broker); Tower Business Centre, Level 3, Tower Street, Swatar, BKR, 4013, Republic of Malta. UK branch office is registered in England and Wales, authorised and regulated by the Financial Conduct Authority. Servca Canada Insurance Group Inc, a private limited company incorporated at 40 King Street West, Suite 2100, Toronto, M5H 3C2, Canada. Servca group of companies are owned and operated by Servca Group Holdings Ltd, a private limited company registered in England & Wales.

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Global Headquarters

Servca Group

Dukes House

32-38 Dukes Place

5th Floor

London, EC3A 7LP

United Kingdom


+44 (0) 207 2250000

info@servca.com


Broker at Lloyd’s SLM1389

European Office

Servca Europe

Dragonara Business Centre

Dragonara Road

5th Floor

St Julian’s, STJ 3141

Republic of Malta


+356 (20) 341690

eu@servca.com


Broker at Lloyd’s (Brussels) SLM1883

Canadian Office

Servca Canada Insurance Group Inc
40 King Street West
Suite 2100
Toronto
M5H 3C2
Canada


+1 (647) 846 5555

canada@servca.com


Non-regulated servicing company

Northern Ireland

Servca Northern Ireland
River House Belfast

48-60 High Street

Belfast

BT1 2BE



+44 (0) 2895582000

ni@servca.com


Broker at Lloyd’s SLM1389

© 2024 Servca


Servca Group Ltd is a private limited company registered in England and Wales; Registered Number: 7727494; Registered Office: Dukes House, 32-38 Dukes Place, 5th Floor, London, EC3A 7LP, United Kingdom. Authorised and regulated by the Financial Conduct Authority. Servca European Insurance Brokers Ltd (a private limited company incorporated in Malta and enrolled to act as an insurance broker); Tower Business Centre, Level 3, Tower Street, Swatar, BKR, 4013, Republic of Malta. UK branch office is registered in England and Wales, authorised and regulated by the Financial Conduct Authority. Servca Canada Insurance Group Inc, a private limited company incorporated at 40 King Street West, Suite 2100, Toronto, M5H 3C2, Canada. Servca group of companies are owned and operated by Servca Group Holdings Ltd, a private limited company registered in England & Wales.

Privacy Policy

Cookies

Global Headquarters

Servca Group

Dukes House

32-38 Dukes Place

5th Floor

London, EC3A 7LP

United Kingdom


+44 (0) 207 2250000

info@servca.com


Broker at Lloyd’s SLM1389

European Office

Servca Europe

Dragonara Business Centre

Dragonara Road

5th Floor

St Julian’s, STJ 3141

Republic of Malta


+356 (20) 341690

eu@servca.com


Broker at Lloyd’s (Brussels) SLM1883

Canadian Office

Servca Canada Insurance Group Inc
40 King Street West
Suite 2100
Toronto
M5H 3C2
Canada


+1 (647) 846 5555

canada@servca.com


Non-regulated servicing company

Northern Ireland

Servca Northern Ireland
River House Belfast

48-60 High Street

Belfast

BT1 2BE


+44 (0) 2895582000

ni@servca.com


Broker at Lloyd’s SLM1389

© 2024 Servca


Servca Group Ltd is a private limited company registered in England and Wales; Registered Number: 7727494; Registered Office: Dukes House, 32-38 Dukes Place, 5th Floor, London, EC3A 7LP, United Kingdom. Authorised and regulated by the Financial Conduct Authority. Servca European Insurance Brokers Ltd (a private limited company incorporated in Malta and enrolled to act as an insurance broker); Tower Business Centre, Level 3, Tower Street, Swatar, BKR, 4013, Republic of Malta. UK branch office is registered in England and Wales, authorised and regulated by the Financial Conduct Authority. Servca Canada Insurance Group Inc, a private limited company incorporated at 40 King Street West, Suite 2100, Toronto, M5H 3C2, Canada. Servca group of companies are owned and operated by Servca Group Holdings Ltd, a private limited company registered in England & Wales.

Privacy Policy

Cookies