How Long Does a Doctor’s Indemnity Cover Last?
| Wednesday | 5th February, 2020Summary:
A Doctor’s Professional Indemnity policy provides financial protection to medical practitioners against legal claims and costs by patients for compensation in the event of a legal claim. Legally, it provides immunity from damages. The uncertainty in the compensation amount to be paid is the greatest fear. At times, the amount is quantified based on the mental trauma and stress caused to the patients during the course of events. In such cases, the compensation amount awarded could be enormous.
Image Courtesy: Shutterstock
No matter how much experience you have gathered in your practice, there is always a possibility that you or any of your team members might make a mistake.Irrespective of your organization’s size, you could be left vulnerable if a lawsuit is brought against you without a professional indemnity policy that covers your financial position. You really gain peace of mind when you have an adequate insurance policy.
If you are a doctor or any healthcare provider, your professional indemnity policy will cover both you and your patient in case something goes wrong and the patient ends up getting hurt or otherwise negatively impacted by the treatment.
What does a doctor’s professional indemnity policy cover?
The policy will cover you for both legal and compensation costs if you have caused harm to the patient by committing an error, omission or act of negligence.
It protects youduring your training period as well, if your medical services to a patient during that period result in any harm and lead to a lawsuit.
Coverage under a professional indemnity policy summarised:
· The extent of financial loss to the victim not caused by deliberate negligence
· Unintended errors and omissions
· Insurance extended to other qualified and unskilled partners of the healthcare firm
· Cost of defending yourself in the court
Policy Period
A doctor’s professional indemnity policytypically has a duration of 1 year, after which it can be renewed to continuously enjoy protection against liabilities.
It is sometimes challengingto set the indemnity limit as monetary compensations can be huge in some cases. However, the limits under professional indemnity policy are set as per the exposure of work. There are primarily two types of limits based upon per accident and per policy period (i.e. 1 year).
Concept of AOY and AOA:
The policy must compensate by the sum assured that had been set as a limit for the defined cover. The individual or the practitioner shall additionally bear anything beyond. The cover to be taken must be based on the factors such as the risks involved in the practice and the possibility of any mishap occurrence, which may lead to litigation.
The sum insured is the limit of indemnity, set according to the policy period and accident probability. It is called AOA (Any One Accident) limit and (AOY) Any One Year limit. The ratio of AOY and AOA can be selected when purchasing the policy and is the decisive factor for the amount payable for each negligence by the practitioner.
The ratio varies depending upon the insurance company, which usually ranges between 1:1 to 1:4.
Why Must You Renew a Professional Indemnity Policy regularly?
The policy is up for renewal after completion of one year.Here are some beneficial reasons to renew the policy:
· There is no formula to estimate the compensation that must be paid to the patients when they lose any body part or suffer severe mental issues. The policy saves you from such indefinite penalties and legal costs, in case of a lawsuit.
· Professional indemnity policy also covers nurses, technical staff, the hospital and its practitioners, and staff under the broad umbrella term.
The best way to save time in case of any mishap and take an informed decision is to connect with insurance brokers who provide all possible solutions to get an appropriate policy. SecureNow is one such insurance policy broker that offers all the information required for the purchase and also facilitates renewal of a policy.
A Doctor’s Professional Indemnity policy provides financial protection to medical practitioners against legal claims and costs by patients for compensation in the event of a legal claim. Legally, it provides immunity from damages. The uncertainty in the compensation amount to be paid is the greatest fear. At times, the amount is quantified based on the mental trauma and stress caused to the patients during the course of events. In such cases, the compensation amount awarded could be enormous.
Image Courtesy: Shutterstock
No matter how much experience you have gathered in your practice, there is always a possibility that you or any of your team members might make a mistake.Irrespective of your organization’s size, you could be left vulnerable if a lawsuit is brought against you without a professional indemnity policy that covers your financial position. You really gain peace of mind when you have an adequate insurance policy.
If you are a doctor or any healthcare provider, your professional indemnity policy will cover both you and your patient in case something goes wrong and the patient ends up getting hurt or otherwise negatively impacted by the treatment.
What does a doctor’s professional indemnity policy cover?
The policy will cover you for both legal and compensation costs if you have caused harm to the patient by committing an error, omission or act of negligence.
It protects youduring your training period as well, if your medical services to a patient during that period result in any harm and lead to a lawsuit.
Coverage under a professional indemnity policy summarised:
· The extent of financial loss to the victim not caused by deliberate negligence
· Unintended errors and omissions
· Insurance extended to other qualified and unskilled partners of the healthcare firm
· Cost of defending yourself in the court
Policy Period
A doctor’s professional indemnity policytypically has a duration of 1 year, after which it can be renewed to continuously enjoy protection against liabilities.
It is sometimes challengingto set the indemnity limit as monetary compensations can be huge in some cases. However, the limits under professional indemnity policy are set as per the exposure of work. There are primarily two types of limits based upon per accident and per policy period (i.e. 1 year).
Concept of AOY and AOA:
The policy must compensate by the sum assured that had been set as a limit for the defined cover. The individual or the practitioner shall additionally bear anything beyond. The cover to be taken must be based on the factors such as the risks involved in the practice and the possibility of any mishap occurrence, which may lead to litigation.
The sum insured is the limit of indemnity, set according to the policy period and accident probability. It is called AOA (Any One Accident) limit and (AOY) Any One Year limit. The ratio of AOY and AOA can be selected when purchasing the policy and is the decisive factor for the amount payable for each negligence by the practitioner.
The ratio varies depending upon the insurance company, which usually ranges between 1:1 to 1:4.
Why Must You Renew a Professional Indemnity Policy regularly?
The policy is up for renewal after completion of one year.Here are some beneficial reasons to renew the policy:
· There is no formula to estimate the compensation that must be paid to the patients when they lose any body part or suffer severe mental issues. The policy saves you from such indefinite penalties and legal costs, in case of a lawsuit.
· Professional indemnity policy also covers nurses, technical staff, the hospital and its practitioners, and staff under the broad umbrella term.
The best way to save time in case of any mishap and take an informed decision is to connect with insurance brokers who provide all possible solutions to get an appropriate policy. SecureNow is one such insurance policy broker that offers all the information required for the purchase and also facilitates renewal of a policy.
A Doctor’s Professional Indemnity policy provides financial protection to medical practitioners against legal claims and costs by patients for compensation in the event of a legal claim. Legally, it provides immunity from damages. The uncertainty in the compensation amount to be paid is the greatest fear. At times, the amount is quantified based on the mental trauma and stress caused to the patients during the course of events. In such cases, the compensation amount awarded could be enormous.
Image Courtesy: Shutterstock
No matter how much experience you have gathered in your practice, there is always a possibility that you or any of your team members might make a mistake.Irrespective of your organization’s size, you could be left vulnerable if a lawsuit is brought against you without a professional indemnity policy that covers your financial position. You really gain peace of mind when you have an adequate insurance policy.
If you are a doctor or any healthcare provider, your professional indemnity policy will cover both you and your patient in case something goes wrong and the patient ends up getting hurt or otherwise negatively impacted by the treatment.
What does a doctor’s professional indemnity policy cover?
The policy will cover you for both legal and compensation costs if you have caused harm to the patient by committing an error, omission or act of negligence.
It protects youduring your training period as well, if your medical services to a patient during that period result in any harm and lead to a lawsuit.
Coverage under a professional indemnity policy summarised:
· The extent of financial loss to the victim not caused by deliberate negligence
· Unintended errors and omissions
· Insurance extended to other qualified and unskilled partners of the healthcare firm
· Cost of defending yourself in the court
Policy Period
A doctor’s professional indemnity policytypically has a duration of 1 year, after which it can be renewed to continuously enjoy protection against liabilities.
It is sometimes challengingto set the indemnity limit as monetary compensations can be huge in some cases. However, the limits under professional indemnity policy are set as per the exposure of work. There are primarily two types of limits based upon per accident and per policy period (i.e. 1 year).
Concept of AOY and AOA:
The policy must compensate by the sum assured that had been set as a limit for the defined cover. The individual or the practitioner shall additionally bear anything beyond. The cover to be taken must be based on the factors such as the risks involved in the practice and the possibility of any mishap occurrence, which may lead to litigation.
The sum insured is the limit of indemnity, set according to the policy period and accident probability. It is called AOA (Any One Accident) limit and (AOY) Any One Year limit. The ratio of AOY and AOA can be selected when purchasing the policy and is the decisive factor for the amount payable for each negligence by the practitioner.
The ratio varies depending upon the insurance company, which usually ranges between 1:1 to 1:4.
Why Must You Renew a Professional Indemnity Policy regularly?
The policy is up for renewal after completion of one year.Here are some beneficial reasons to renew the policy:
· There is no formula to estimate the compensation that must be paid to the patients when they lose any body part or suffer severe mental issues. The policy saves you from such indefinite penalties and legal costs, in case of a lawsuit.
· Professional indemnity policy also covers nurses, technical staff, the hospital and its practitioners, and staff under the broad umbrella term.
The best way to save time in case of any mishap and take an informed decision is to connect with insurance brokers who provide all possible solutions to get an appropriate policy. SecureNow is one such insurance policy broker that offers all the information required for the purchase and also facilitates renewal of a policy.