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As doctors literally have people's lives in their hands, it's no wonder that specific professional indemnity insurance is compulsory.
Duty of care and the level of responsibility doctors are required to accept as part of their job description exposes them to an inflow of litigious action. The profession is susceptible to complaints made by distressed family members, patients, and even the hospital or practice they are working for.
Legal claims for malpractice, negligence and incorrect diagnosis
Professional insurance for doctors helps practitioners protect themselves against claims of misconduct, malpractice, negligence, incorrect diagnosis and poor judgement. A comprehensive policy can cover the doctor even after retirement,
Professional insurance for doctors is compulsory; you cannot opt out of it. Recent reform in Australia means that hospitals are to refuse doctors who do not have professional insurance. You cannot practice in Australia without adequate insurance and the medical board is unlikely to accept doctors who do not have it.
Hospital insurance
The hospital or practice will always have their own coverage to protect the organisation from claims brought about by members of the public. While this will protect the hospital, it may leave the doctor exposed. Doctors need to provide their own coverage in case a suit is brought against them personally.
Financial assistance for doctors
Professional insurance for doctors is expensive. The Australian Government announced further funding in 2007 to help combat the rising costs associated with indemnity insurance. These measures include:
- Financial assistance to doctors whose private indemnity costs are more than 7.5 percent of their total income
- Provide offsets when claims are between $300,000 and the total of the doctor's own cover
- Assistance where personal claims exceed $20 million
The Department of Health has more information about these reforms and how the Government is able to assist doctors with insurance costs.
Factors that may influence professional indemnity coverage
The amount of coverage required will depend on the role and procedures the doctor performs. Their position at the facility, their level of experience, their specialisation and how long they have been specialising for will also be taken into account.
If the facility and the doctor plan to undertake clinical trials, if there are changes in the medical services provided by the facility or the doctor, or if contractual arrangements increase liability above the threshold normally reserved under common law, it could also influence the cost of insurance.
Organisations such as the Australian Medical Association, Medical Insurance Australia, United Medical Protection and the Medical Indemnity Protection Society are also great sources of information, particularly for members.
