Australia prioritizes the welfare of its citizens, ensuring that justice is consistently provided to them. Consequently, the country’s legal system has established frameworks that enable justice to be served. Even when clients do not treat professionals with the proper dignity and respect.

Professional Indemnity insurance is concerned with the protection of professionals in various industries, including the healthcare industry. Medical professionals are assured that they are best protected against unwanted claims with Professional Indemnity insurance.

Medfuture ensures that all medical professionals and related businesses are aware of Professional Indemnity insurance as a means of protecting their profession and the relevant business.

What is Professional Indemnity insurance in Australia?

Professional Indemnity insurance protects professionals from different industries against negligent claims or breaches of duty made by clients when receiving professional consultation or services from a business.

If someone accuses you of making a mistake, or overlooked vital information, and it results in financial loss for a client, they may take action legally as a means of recovering this loss. Professional Indemnity insurance plays a crucial role at this point, as it would pay for your legal defense and any settlements attached to the case.

What generally results in a Professional Indemnity claim?

As a medical professional, you may take the best course of action that you provide a fair service to your patients and all other clients. However, the reality is that claims still occur. That is why having Professional Indemnity insurance will help as it will assure you peace of mind and protect your business accordingly.

Here are some of the common mistakes that could occur, which could result in clients taking legal action against professionals:

• Failure to provide the service as expected
• Providing incorrect or incomplete work
• Negligence in rendering professional services within the business
• Making mistakes or oversights
• Ignorance and accidental omissions

Who needs Professional Indemnity insurance?

Any professional or individual who gets paid for professional advice or opinions must ensure that they are covered with Professional indemnity insurance. It’s important for the following individuals:

• A person who provides professional consultation or services to a business or individual
• Government contractors
• Health professionals most definitely fall under this category, so they must be covered by Professional Indemnity insurance.
• Apart from medical professionals, management consultants, IT contractors, accountants, and estate agents must be covered as well.
• It provides a financial safeguard to help protect businesses and professionals attached to them.

Professional Indemnity insurance for medical professionals

Professional Indemnity insurance policy for medical professionals is an insurance contract that ensures financial protection to both medical professionals and their patients in situations where a patient sustains an injury caused by medical malpractice or simple negligence.

What does Professional Indemnity insurance cover?

The following are the key features of the Professional Indemnity insurance cover for medical professionals.

Civil liabilities claims

Civil liability claims generally arise from unintentional defamation, breach of responsibility, loss of documents, damage to documents, or unintentional infringement of intellectual property.

This claim covers the occasion where a medical professional is sued by a patient or any other individual due to the healthcare provided by the particular medical professional. In addition, if you are within the medical field your lawyer fees and all other legal costs are also covered. It covers up to about AU$2 million.

Cover for disciplinary and other situations

Professional Indemnity insurance covers you regarding disciplinary and other matters, including defending you in front of AHPRA (Australian Health Practitioner Regulation Agency), the Australian Medical Board, and the Coroner when your practice as a medical professional is tested. The insurance also supports you through investigations by your state health complaints unit and the criminal courts. The covers up to AU$ 2 million.

Automatic communicable disease cover

In the event that you contract a disease that is contagious, the insurance will pay a sum of AU$ 175,000 to assist you in retaining or altering your practice. It may also help support you financially in case you decide to retire under such circumstances. Some examples of communicable diseases that you could contract are hepatitis B, hepatitis C, multi-drug resistant tuberculosis (MDRTB), or extremely drug-resistant tuberculosis (XDRTB).

Statutory fines and penalties

Where permitted by law, this will cover you in the event of fines imposed by government regulators for breaches of privacy, consumer safety, environmental laws, or workplace health and safety regulations. It will also cover any associated costs for privacy breaches. The coverage extends up to a maximum of AU$ 250,000.

Employee, employer, and VMO disputes

Employment disputes can be stressful, and this is where Professional Indemnity insurance becomes even more valuable. The insurance company will provide defense for any related matters and may even take action against the employer, even if you are a visiting medical officer or locum medical practitioner. The coverage typically extends up to AU$175,000 and is subject to joint contribution.

Cover abroad

Doctors and medical professionals have skills that they can put to use in countries outside of Australia. This insurance will cover them for healthcare wherever in the world (excluding the USA). It is valid for less than 4 months and less than 24 months if undertaking a training course.

Medical training dispute

Medical graduates and other related healthcare professionals work hard to get into training programs. This insurance is supported by covering the lawyer costs that are involved if you have a dispute with the relevant training college. The insurance covers up to AU$500,000.

Personal expenses cover

The personal expenses coverage is generally optional, allowing you to seek reimbursement for your day-to-day expenses related to accommodation and travel. It also provides coverage for your loss of earnings, especially if you had to suspend your practice or work due to attending to legal matters.

Indemnity dispute pursuit

This is the support you get from insurance if you are having problems being indemnified by another organization, including hospitals and other healthcare services, which you have an agreement with to indemnify you. This covers up to AU$500,000.

General areas covered by Professional Indemnity insurance

Bodily injury and property damage claims: These are the areas arising from professional services covered by the policy.

Public relations expenses: This is the cost that is to be borne when engaging a public relations consultant to protect one’s reputation.

Legal costs and expenses: This is the cost involved in investigating a case, attending court sessions, and defending and settling claims.

Estates and legal representatives: This is related to the coverage of heirs, estates, and legal representatives for claims arising from professional consultation and services provided, in the event of your death or inability to provide services.

What is the difference between an individual doctor’s Professional Indemnity policy and Practice Medical Indemnity insurance?

A doctor’s Professional Indemnity insurance policy is often confused with what is known as Entity Malpractice Insurance or Practice Medical Indemnity Insurance. Practice Medical Indemnity Insurance generally covers the legal costs associated with a private practice’s legal trading entity, including some of its employees, such as administrative staff, in cases of accusations and compensation claims related to patient injury or loss.

In such cases, a medical practice may be named as a defendant in legal matters, sometimes in place of the doctor who provided medical care to the patient. This typically occurs in situations where a patient has been seen by multiple doctors over time, and it is unclear who should be held responsible for the negligence from the patient’s perspective.

What is the importance of Professional Indemnity insurance?

Professional Indemnity insurance is vital especially when owning a business or providing consultation services as you become liable for damages caused by your business or service to another individual. Amidst the threat of potential claims, litigation is a possibility and could even drive a business or service facility toward bankruptcy.

Professional Indemnity protects you and the business against false claims and alleged negligence or breach of duty when providing professional services as a medical practitioner.

What does Professional Indemnity insurance not cover?

• Professional Indemnity insurance does not cover the following areas:
• Existing circumstances: It does not cover any situations or claims that you are aware of before the policy starts.
• Intentional damage: It does not cover the purposeful damage you cause to a third party.
• Contractual obligations: It does not cover expenses or costs involved with you complying with contractual obligations you’ve opted to enter into with a client.
• Bankruptcy: It does not cover claims and alleges directed towards you due to bankruptcy.

Medfuture, a renowned healthcare recruitment agency, prioritizes the highest standards in healthcare facilities and medical professionals. We have a deep understanding of the importance of Professional Indemnity insurance and encourage its use by healthcare providers and practitioners.

Visit the Medfuture job board for a list of the latest healthcare jobs in Australia.