Medicine & the Healthcare Industry in general have become more “corporatised”. Corporate Entities & Service Companies now make up a large percentage of practices within the Healthcare Industry. The Directors & Officers or Principle owners of these companies can be held responsible for the acts, errors & omissions of their staff (Receptionists, Practice Managers, Nurses & Medical Practitioners) whilst providing healthcare. The same is true of Sole Traders & any Principle Practitioner who employs or sub-contracts staff.
While some Medical Defence Insurers (MDO’s) will extend their Individual Practitioner’s Medical Indemnity policies to cover very small numbers of staff in very limited & specific circumstances; in the vast majority of cases, the Entity requires a Medical Indemnity Practice Policy to protect both the Practice Staff & Principles or Officers from Medical Malpractice or Civil Liability claims.
There has been much debate on the subject of liability attaching to the contracting or contracted service entity by legal experts . And while there are differences of opinion over the “degree” of association between sub-contracted or contracted Practitioners and the Entity of a practice – all agree that there is still a risk of Vicarious Liability to the Entity.
Mediprotect’s Professional Risks Insurance Policy is a Civil Liability policy underwritten by VERO. This cover is broader than a Medical Malpractice wording.
The policy will respond to civil claims for compensations and associated legal expenses as a result of a breach of professional duty by the insured. i.e. the provision of “General Practice” activities. Included is the added bonus of the following covers.
- Medicare Fraud
- Trade Practices
- Intellectual Property
- Libel & Slander
- Loss of Documents
- Privacy Breached
- Investigations/ Enquiries
The policy offers direct liability cover to the Entity (e.g. 123 Family Trust t/as ABC Medical Pty Ltd) & practice staff of the entity (i.e. Reception staff, Nursing staff, Admin staff, employed Allied Health practitioners), but excludes direct cover Medical Practitioners.
However, the policy does offer vicarious liability for Medical Practitioners & Allied Health Practitioners providing services on behalf of, or through contractual arrangement with the Entity.