Are you a registered medical practitioner or consultant?
If so, under the Australian National Law, you must be insured or otherwise indemnified for your entire scope of practice, whether via your employer’s indemnity arrangements or through your own medical indemnity insurer. This means it is mandatory for all registered doctors and nurses to have their own personal medical indemnity insurance.
Medical Malpractice insurance is also a requirement for registration with the Australian Health Practitioners Regulatory Authority (AHPRA).
But make no mistake, not all medical malpractice insurance policies are the same!
With the increasing reliance on AI and offshore administration resources for the composition of clinical reports, a number of insurers are specifically excluding claims arising from errors or incorrect commentary, diagnosis, treatment or analysis arising from these ‘external’ sources.
Additionally, if you undertake telehealth consultations, issuing of prescriptions and medical certificates, there are a range of (emerging) risks that need to be addressed; as well as to ensure that your medical Malpractice Insurance will respond to a potential claim, associated defence costs and provision of representation costs at official hearings.
The medical sector is rapidly evolving, with the efficient use of technology, however, not all medical indemnity insurance policies are keeping up with the increasing complexity of certain treatments and progress in process, efficiency and services to patients.
Are you an employer of a medical or allied health practice?
If so, you should know that individual medical practitioner’s indemnity insurance does not cover everything or protect the (employer) business. Employer medical practices, allied health businesses and cosmetic practices interact with patients and support practitioners and provide ancillary services. Practice protocols, staff errors or system failures can create or contribute to poor patient outcomes, exposing the business or practice to legal action.
As such, Medical Malpractice Insurance should be bought by (both) the medical practitioner or allied health worker, as well as the employing entity, to protect their own respective liabilities, as well a legal defence costs.
Our medical, cosmetic and aged care clients have greater business confidence and improved risk appetite as we offer advanced risk management strategies that extend beyond the traditional focus on regulatory compliance.
We also specialise in cosmetic beauty therapies and Aged Care, with our experience ensuring our clients secure (essential) sexual harassment and molestation cover.
It should be remembered, that it is not necessarily the truth of the allegation that impacts the stability of the practice, it is usually the legal cost of reputational and financial defence of the business/ practice; which is quite often separate to the interests of the individual (employed or contracted) medical or allied profession.
Business this is recommended for:
All medical practitioners, employers of medical practices, doctors, cosmetic surgeons, providers of cosmetic treatments, aged care providers, allied health workers and medical equipment suppliers.
Common questions:
Who needs medical malpractice and indemnity insurance?
Under the Australian National Law, a crystal-clear directive asserts that doctors must be insured or indemnified for their entire scope of practice. This mandate emphasizes the importance of coverage through employer-provided indemnity arrangements or personal medical indemnity insurance. The language leaves no room for ambiguity; it is mandatory for all doctors in private practice to secure personal medical indemnity insurance, providing financial protection for both practitioners and patients.
Medical Malpractice Insurance should be bought by (both) the medical practitioner or allied health worker, as well as the employing entity, to protect their own respective liabilities, as well a legal defence costs.
Our article, Is Medical Malpractice Insurance compulsory for Doctors in Australia?, delves into legal mandates, responsibilities, and protective measures, shedding light on the indispensable role that medical malpractice insurance plays in instilling confidence within the Australian healthcare system.
Does my AHPRA registration include indemnity insurance?
No, it does not.
AHPRA registration is a comprehensive system covering a wide array of qualifications, training, experience, and background checks but it does not include indemnity insurance. In fact, applicants, as part of their AHPRA registration, must provide professional indemnity insurance (PII) that complies with the relevant registration standards for all aspects of their practice.
What is covered by medical indemnity insurance?
All registered medical professionals (legally) must have medical malpractice cover, whether provided by their employer or bought personally. These policies are Civil Liability based policies, so they cover rectification (surgery & medication) costs, loss of future income, pain & suffering, loss of amenities or companionship; and sometimes civil fines & penalties. It is not mandatory for practices to have Medical Malpractice, but practices do have contingent liability exposure for any error or failure in medical services provided by doctors or nurses within the practice.
Are professional indemnity and medical malpractice the same?
Professional Indemnity policies are designed to provide cover for a third party’s financial loss (only). Most Professional Indemnity policy exclude ‘Bodily Injury’ and/ or pain & suffering claims. Medical Malpractice Insurance covers the Bodily Injury, pain & suffering, loss of amenities or companionship; as well as (loss of) financial aspects of an injured parties claim.
How much does professional indemnity insurance cost?
Premiums are dependent upon industry sector being insured, both individual/ company and industry segment claims experience, sum insured (policy limit), level of self-insurance (i.e. policy excess), skill and experience of professionals within the business, annual turnover and types of largest clients that professional services are provided to. Professional Indemnity premiums in many industry sectors are becoming competitive, with recent growth in the number of insurers with risk appetite for providing Professional Indemnity insurance.