A doctor is the first person who comes to mind, whether it is for saving a life or for curing an individual from illness. Patients often revere doctors, because of the knowledge and skills they bring to heal and cure diseases. However, doctors, being human, can commit mistakes for which they are liable to face lawsuits filed by patients based on allegations of medical errors or negligence. The insurance product to help doctors manage such cases is called doctors’ liability insurance.
This product is also called professional indemnity insurance for doctors, and it comes with a variety of benefits, including cover for costs of litigation, court fees, and any settlements due to be paid to the patient. However, like any other insurance policy, professional indemnity insurance is valid for a specific time period and needs to be renewed every year.
If you are a medical practitioner and have bought liability insurance, here is why you should ensure you renew your policy on time:
- Freedom from financial obligations
While you are engaged in your medical practice, there is always a risk of committing medical errors. Although this risk can be minimized, it cannot be eliminated. In case patient files for litigation against you for medical negligence and asks for a hefty compensation amount, your indemnity insurance policy will cover it as per its terms and conditions. However, in case your policy is not active at the time of the filing, the situation can cause a severe financial loss for you. Renewing your liability insurance policy to ensure it stays active without any break is crucial to avoid facing financial setbacks as a part of your medical profession.
- Protection Against Medical Lawsuits
In general, no one likes to be involved in a court case – especially long-enduring cases. Court hearings, involvement with lawyers, communicating with the aggrieved is not an easy task. As a doctor, you will have to leave your medical practice to deal with the chaos related to a medical negligence court case. All of this can happen if your indemnity insurance policy is not active. However, once your policy is renewed on time, it will offer you protection from medical lawsuits. You need not worry about a frequent visits to courts or having to deal with other legal hassles.
- Easy to Avoid Prior Period Exclusion
In general, claims pertaining to a time-period before the retroactive date of your policy will not be covered. Not renewing your doctor’s liability insurance policy in time means the retroactive date will lapse. Till the time the policy gets renewed, you are vulnerable to the risk of a medical lawsuit. You can avoid this with the help of timely renewal of your policy.
In case there is a considerable time lapse between the expiry date of the policy and its renewal, it may lapse. The retroactive date is then reset to mark the start of the new insurance policy.
- Sense of Security
Above everything else, the most important thing you will get with the timely renewal of your doctor liability insurance is peace of mind. Just imagine how hard it would be to pursue your medical practice while lawsuits running against you. Situations like these cause doctors to lose focus on their work, thereby further increasing the chances of medical errors.
By having your indemnity insurance policy renewed on time, you earn a sense of security while offering healthcare services and curing patients. Also, by including your medical staff in the policy, you can further reduce the risk of legal issues.
To conclude, timely renewal of your professional indemnity insurance policy is helpful in terms of legal and financial implications. While you are doing your best to cure the diseases your patients are suffering from, you also need to be prompt to renew indemnity insurance.