Medical Malpractice Insurance
Medical malpractice insurance, is in practice a hybrid of public liability insurance and professional indemnity insurance, responding to claims arising from both bodily injury, including metal and psychological damage, from both physical procedures and from advice, or indeed a combination of the two.
Generally speaking a professional indemnity insurance policy will not respond to claims for bodily injury, and a public liability policy will not respond to claims arising from advice. Medical malpractice insurance bridges the gap between the two covers.
Policies vary from underwriter to underwriter, and from profession to professions, but fundamentally fall into two categories;
Malpractice - based in professional indemnity and responding to the policyholders legal liability arising out of any bodily injury, mental injury, illness, disease or death of any patient caused by any negligent act, error or omission committed by the insured in or about the conduct of the insured's occupation or business as stated in the schedule, or Good Samaritan Acts.
Treatment Risks - fundamentally a public liability insurance policy extended to include breach of professional duty consequent upon any neglect, error or omission in providing advice, treatment or prescriptions or professional services.
One major difference between the two standard forms of contract is the basis upon which a claim may be made. Malpractice insurance, similar to professional indemnity is generally written on a "claims made" basis, whilst Treatment Risks are written on a "claims occurring" basis.
These important distinctions relate to the claims to which a policy responds. Claims occurring means that the policy responds to claims that actually occur during the period of insurance, this being the situation that most general insurance clients are familiar with in other classes of insurance. Claims made means that the policy responds to claims that are actually brought against he policyholder during the period of insurance.
Where policies are written on a claims made basis, consideration must be given to retroactive cover, to provide for claims that may arise from previous work.
It is also important to appreciate that upon retirement or cessation of business, if insurance has been held on a claims made basis, "run-off" cover will be required to protect the policyholder in future years against new claims.
For further information on medical malpractice insurance from Blackfriars Group please contact us on 0161 300 2930 or follow Quotes.