Individuals who own or part own companies which in turn own and control medical or healthcare practices should always ensure that the company is adequately protected against patient claims as they can be made against companies in their own right.
Whilst claims are generally made directly against practices (entities/companies) by patients there is growing evidence of claims against practices being lodged by third parties.
A couple of examples of third party claims against practices are:
- The medical indemnity insurer of a doctor dealing with a patient claim may take the view that there is some negligence on the part of the practice e.g. the breakdown of procedural matters set by the practice, actions of the staff (vicarious liability which attaches to the employer) and that this has contributed to the patient outcome
- The medical indemnity insurer of another practice could take the same view as in 1) above where, although a claim may be directed against their client – say a Radiology practice, the insurer handling the claim may consider there has been some miscommunication on the part of a GP practice which has contributed to the patient outcome.
These are only a couple of examples where claims against practices do not necessarily emanate directly from patients.
The reality is that a practice which is owned and controlled by individuals within a structured entity is exposed to medical indemnity claims should the entity not be adequately insured in its own right.
If you own, or part own a medical or healthcare business we can provide you with advice and assist you to ensure your business entity is adequately protected. Our Healthcare policy for medical businesses is designed to provide exactly this type of protection and with flexible cover options can be tailored to suit the needs of your business.
Call us for advice particular to your circumstances.