Cover for your Doctors – Right choice for your business?
The traditional medical malpractice insurance model has typically been of Doctors working for a business and carrying their own indemnity and the business its own corporate malpractice insurance.
However, this method has always had its disadvantages; the administrative burden of checking individual Doctors arrangements; the lack of flexibility
where for example a Doctor’s declared sessions are exceeded; and the increase in indemnity costs for Doctors, particularly those working in urgent care settings such as Out of Hours environments.
In addition, the way claims are presented is changing with claimants alleging a Non-Delegable Duty of Care on the part of the business and holding the business solely responsible for the patient care.
All of this means that it may be advantageous for a business to insure both the business and Doctors under the same insurance policy.
How It Works
Premiums are calculated based upon the Full Time equivalent numbers without the requirement to name individual Doctors so there is no specific need to provide significantly more information than you may currently.
All claims would be paid under the one policy without the usual finger pointing between the corporate policy and the Doctor’s own indemnity cover. Leavers would be automatically catered for on an on going rolling basis.
It can be seen from the above that the administrative burden on a business is significantly reduced when insuring on this basis.
The potential for costly disputes and allocation of costs between different parties is also diminished, providing certainty for all concerned.
The recruitment of Doctors can also be made easier, safe in the knowledge that they will be covered under the business insurance arrangements.
…and finally, it is often a more cost effective solution than the traditional two tiered approach, and insurers will provide a split of the premium to enable the Doctors’ costs to be charged back to individuals if required.
Medical malpractice insurance is provided on a ‘claims made’ basis whereas personal indemnity is a ‘losses occurring’ protection. A ‘claims made’ policy needs to be in force at the time a claim is brought against the business and/or individual Doctor for cover to operate including any appropriate ‘run off’ period after a business or contract may have ceased. Such potential risks and cost implications need to be factored in to your decision making process.
For further information, or to discuss whether including Doctors under your business insurance is right for you, please contact us.
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