Medical Malpractice Insurance Explained

Get protected against medical negligence claims

Haven’t we all heard some weird and wonderful story involving a case of medical negligence? Isn’t it true that whenever a medical practice is being sued for accidentally causing the death of a patient, the story usually makes the news headlines? The media certainly love a sensational medical negligence case.

However, even if a medical professional is exonerated by a judge who rules in their favour, the long-term damage to a medical practice’s reputation is considerable.

Due to the nature of their work, healthcare providers have to be particularly careful when treating their patients. It goes without saying that there is a substantial amount of risk in their line of work.  Even the smallest error can trigger litigation from a patient, which can have financially devastating consequences for the health practitioner if they are not covered by Medical Malpractice Insurance.

What is Medical Malpractice Insurance?

This is a Professional Indemnity Insurance cover that provides cover for loss or damage arising from allegations of negligence made against a healthcare practice or insured person. Litigation may be commenced by the patient, their estate, family members (if the patient is deceased, a minor or a party holding a power of attorney with the ability to act in the interest of the claiming party).

This policy offers financial protection for healthcare providers against litigation arising in response to alleged acts of medical negligence. Legal fees and investigation expenses are also covered under the policy.   It is vital these businesses operating as health or medical providers are protected with Medical Malpractice cover including other types of healthcare professionals such as naturopaths and physiotherapists.

Who needs Medical Malpractice coverage?

The Berkley Insurance Australia Health Care Practice Protection Policy may be offered to each of the healthcare businesses listed below:

• Medical centres
• Private hospitals
• Day surgeries
• Alternative and Natural Medicine practitioners
• Diagnostic screening incl. pathology and radiology clinics
• Physiotherapy
• Audiology / Audiometry
• Optometry
• Podiatry
• Speech pathology and speech therapy
• Dental clinics
• Ophthalmology clinics/ Eye clinics
• Non-doctor medical practitioners
• Not For Profit Medical Associations
• NDIS services providers

If your business requires multiple covers including Management Liability, General Liability and Medical Malpractice Insurance, then BIA can tailor a multi-line package to suit your needs.

What does Medical Malpractice Insurance cover your business for?

Botched surgeries, incorrect medical advice and mishandled patient care are probably the types of risks that first come to mind when you think of medical negligence.

However, being a Professional Indemnity product, Medical Malpractice Insurance with Berkley Insurance Australia offers cover for a wide range of business threats. These include:

• Defamation
• The dishonest conduct of any Insured Parties
• Penalties and fines
• Any errors or omissions that you are responsible for in your professional capacity  
• Documents or files that go missing or are destroyed
• Violations of intellectual property laws
• Breaking the terms and conditions of contracts that an insured person has entered into
• Fraud and other types of deceptive conduct
• Emergency First Aid
• Fraud relating to Medicare and Medical Funds

Medical Malpractice Claims Examples

Here are some real-life examples of medical negligence cases covered by Berkley Insurance Australia’s Medical Malpractice Professional Indemnity policy.

Example 1

Following right rotator cuff surgery, the claimant was taken to the bathroom by the insured’s staff. The claimant complained of feeling dizzy, so the insured’s staff went in search of a blood pressure machine. Whilst they were away, the claimant alleged they fell and hit their head.

The claimant was examined and it was determined that there was no sign of a serious head injury and was discharged the following day. The claim was prosecuted and the claimant was awarded in excess of $150,000.

Example 2

Following surgery performed by a Urologist, a claimant alleged that the surgeon had incorrectly applied the surgical glue which caused granulation and stricture. The claimant sought damages from both the doctor and the supplier. After investigating the matter, it was determined that as there was no conclusive evidence indicating that the doctor had misapplied the glue. There was no case to answer and the case did not proceed.

Medical Malpractice Insurance with Berkley Insurance Australia

In tough times like the present, our fabulous healthcare providers are constantly proving they are true superheroes by taking such great care of the sick and vulnerable.

However, they are not immune to the specific threats facing their industry. Medical Malpractice Insurance with Berkley Insurance Australia may give healthcare providers the peace of mind that they have chosen the right type of protection against threats of claims against their businesses.

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