News

New Services, New Liabilities?

By Vickie Rhodes
28.05.15
Medical Professionals in a group

Many practices are joining forces to tender for contracts or provide enhanced services. Relying on current insurance or indemnity arrangements can leave your business exposed. So what are the insurable risks?

Directors and Officers

As a director of a UK business individuals potentially assume an unlimited liability. The Company Law Reform Act made the setting up and operation of a company much easier but also codified director’s statutory responsibilities and npotential personal liabilities for their corporate activities.

Employer’s Liability

You are required by law to have employer’s liability insurance for people who you employ under a contract of service or apprenticeship. Whether or not you need employer’s liability insurance for someone who works for you depends on the terms of your contract with them. This contract can be spoken, written or implied. It does not matter whether you usually call someone an employee or selfemployed or what their tax status is. Whether you choose to call your contract a contract of employment or a contract for services is largely irrelevant. What matters is the real nature of your relationship with the people who work for you and the nature and degree of control that you have over the work they do.

Malpractice/Professional Indemnity

As a business you carry a Vicarious Liability for the negligent actions of those working on your behalf, including Healthcare Professionals with and without their own individual cover. You are also responsible for the selection and placement of staff, with a responsibility to ensure they are adequately trained to do the job. Furthermore in an increasingly litigious society, claims or complaints can arise from outside of direct medical treatment.

If required a malpractice and professional indemnity policy can be extended to cover Nurses, Doctors and other Healthcare Professionals. This is often a much more practical and cost effective option. *Please see addition leaflet or speak to us for more information

Public Liability

Although Public Liability cover may already apply for the premises used by you, this may not extend to liability for accidents suffered by your own patients at these premises or for those caused by your staff on external sites, such as patient’s homes.

Download the document here.

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