A doctor’s professional indemnity insurance policy covers the financial risks that doctors face if they make a mistake in discharging their duties. Mistakes are common but the mistakes of doctors can lead to death or severe physiological damages. Moreover, if the patient is not satisfied with the doctor’s treatments, a lawsuit might become a possibility. A doctor’s professional indemnity policy covers such potential liabilities and helps doctors and medical establishments.
When it comes to the doctor’s professional indemnity premium, there are a lot of factors on which the premium calculation depends. So, to find the right doctor’s professional indemnity premium, you need to know what these factors are. Let’s have a look –
Factors affecting the cost of doctor’s professional indemnity policy
- The sum insured chosen
The higher the amount of coverage that you choose the higher would be the premium payable and vice-versa.
- Type of risk group covered
There are doctors in different specialities like orthopaedics, gynaecology, cardiology, etc. The risk differs across specialities. For example, a general physician would not have the same risk as faced by a specialized surgeon. Similarly, doctors who are neurologists, gynaecologists, cardiologists, cosmetologists, etc. suffer a higher probability of liability claims and face a higher quantum of risk. Thus, the type of risk group covered affects the doctor’s professional indemnity cost. The higher the risk the higher would be the cost.
Additional Read: What type of doctor has the highest malpractice insurance?
- Earnings of the doctor
The doctor’s professional indemnity cost also depends on the expected earnings of the doctor being insured. Higher the earning higher might be the size of the claim and so the premiums are higher in such cases.
- Limit of indemnity and its ratio
The DPI policy’s coverage is issued in an AOA: AOY ratio. The ratio determines the amount of claim payable with respect to the sum insured. If the ratio is high eg. 3:1 or 4:1, the claim payable would be low and so the cost of doctor’s professional indemnity would also be low.
- Size of the establishment
If an establishment is buying a DPI policy, its size would affect the premium rate. The larger the establishment the higher would be the premium charged and vice-versa.
Renewal pricing of DPI
On renewing your DPI policy, the premium would change. Besides the above-mentioned factors which would affect the premium, the claim experience would also impact the premium payable. If you have incurred claims in the previous year, the premium might be increased. On the other hand, if there have been no claims you might earn a premium discount.
How to minimize the doctor’s professional indemnity premium?
You can minimize doctor’s professional indemnity cost through the following –
- Claiming applicable discounts
- Choosing the right coverage
- Choosing those extensions which are needed
- By comparing the premium quotes and then picking the best deal
- By not making small claims
- If you choose a deductible, the premium amount would reduce
Effect on the premium on additional coverage
The DPI policy allows policy extensions which are optional coverage benefits. If you choose these extensions, the premium would increase.
Thus, the cost of a doctor’s professional indemnity should be calculated taking into consideration the aforementioned factors. Then you would find the right price to pay.
We at SecureNow would show you the coverage and premium of multiple policies allowing you to compare and get a customized quote.