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As a medical practitioner, Australian law
requires you to hold appropriate medical
indemnity insurance as part of your
registration obligations. But what about
your practice entity? Is it covered under your
individual policy, or is additional `practice'
cover required?
The reality is that having a financial
interest in a medical practice exposes doctors
to additional risks that are, in many cases,
not covered by personal medical
indemnity insurance.
There are a number of reasons why a
separate practice policy may be needed:
AVOIDING
EXPOSURE
If you don't have the right medical indemnity insurance structure for your
practice,
Penny Morgan-Payler says you could pay a hefty price.
Penny Morgan-Payler
is Head of Corporate
Underwriting at Avant
Mutual Group Limited.
Medical practitioner exposures
Practice owner exposures
Claim against the medical practitioner,
involving:
1. Direct treatment of patients.
2. Supervising others treating patients.
3. Legal representation for VMO and
employment disputes etc.
4. Legal representation for Medical
Board inquiries and other matters
impacting the doctor's ability to
practise.
Claims against the practice entity,
partners, directors or employees from:
1. Failure of practice protocols,
including systemic failures that
could result in multiple claims.
2. Liability assumed as a partner,
employer.
3. Breaches of patient privacy by staff.
4. Errors by unsupervised practice
staff, or where the patient sees
multiple doctors.
PRACTICE DEFENCE