Doctors Professional Indemnity

What are the important features of Doctor’s PI insurance?

Doctors are constantly exposed to lawsuits or dissatisfied patients during their practice. If they commit a mistake or their treatment does not bring the desired result, they could often be sued by their patients and/or the patient’s family for wrongful treatments. If they suffer a lawsuit, the costs they bear can be considerable. Besides having to pay for the defence costs, doctors also incur the liability of any compensation payable to the aggrieved party which threatens their finances. In these cases, a doctor’s professional indemnity policy helps immeasurably. 

The doctor’s professional indemnity policy can be taken by independent doctors as well as by hospitals for covering against possible financial liabilities. Let’s have a look at the salient features of the policy.

Doctor’s professional indemnity features 

  • Doctor’s professional indemnity coverage 

The first feature of the policy is the coverage that it offers. The policy covers the following –

  • Legal costs incurred in defending a lawsuit filed by a patient or his family
  • The settlement that is payable to the third party making a liability claim
  • The fee payable to the court for any litigation suffered 

Moreover, the doctor’s professional indemnity coverage also allows policy extensions which you can choose for customizing and enhancing the policy. Extensions are allowed to cover foreign nationals, loss of documents, negligence, etc.

  • Coverage duration

The policy is, usually, an annual policy which can be renewed every year. Moreover, the doctor’s professional indemnity coverage is allowed on a retroactive basis. This means that if there is a liability claim in the current year for any action in the past years when the policy was applicable, the same would be covered. For example, say you had bought the policy on 1st January 2010 and have been renewing your coverage ever since. Now, in 2021, if any patient files a lawsuit for a treatment taken in 2018, coverage would be allowed by the policy.

Additional Read: Why timely renewals of the DPI policy are important?

  • Doctor’s professional indemnity exclusions

Exclusions are those instances which are not covered under the plan. The DPI policy has a list of exclusions which you should check when buying the policy. Common doctor’s professional indemnity exclusions include the following:

  • Fraudulent acts
  • Acts of negligence
  • Acts of wilful or deliberate conduct
  • Procedures involving weight loss treatments or cosmetic treatments
  • Treatments are done under the influence of alcohol, drugs or other intoxicants
  • Acts of illegal nature
  • Claims suffered before the policy was bought or after the policy has lapsed
  • Claims which were known at the time of buying the policy
  • Who is covered under the policy?

The DPI policy covers independent doctors and medical professionals, medical establishments like hospitals, clinics, laboratories, etc. and even unqualified staff employed with medical establishments.

  • Benefits of DPI cover

A doctor’s professional indemnity policy is considered beneficial and important for doctors because it gives them financial security. By covering the legal costs and settlement costs, the policy provides much-needed financial assistance. Independent doctors can protect their personal wealth while hospitals can protect their profitability by buying the policy. Moreover, if hospitals invest in the DPI policy, they can attract talented medical professionals and create goodwill for themselves in the market.

What are the important features of Doctor’s PI insurance?

Additional Read: How a DPI policy can protect doctors against legal liabilities?

So, understand a doctor’s professional indemnity features and how the policy helps then buy a suitable policy depending on your coverage needs. 

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