Medical indemnity insurance that puts you first

Medical indemnity insurance is a specialised form of professional indemnity insurance designed specifically for doctors and healthcare practitioners.

It provides:

• Legal defence costs
• Compensation payments and settlements
• Regulatory investigation support (e.g. AHPRA notifications)
• Coronial inquest representation
• Civil liability protection

Unlike general professional indemnity insurance, medical indemnity policies are tailored to clinical risk, billing levels, scope of practice and specialty exposure.

In Australia, medical indemnity insurance is mandatory for registered doctors.

The cost of medical indemnity insurance in Australia varies depending on several key factors:

• Specialty and risk profile
• Annual billings
• Claims history
• Scope of procedures performed
• Public vs private practice mix
• Location and jurisdiction

Indicative ranges:

• Low-risk non-procedural specialists may pay from a few thousand dollars per year.
• Higher-risk procedural specialties (e.g. surgery, obstetrics) can pay significantly more.

Insurers typically rate based on billing bands and specialty risk categories. It is important to compare like-for-like policy limits and ensure retroactive cover is maintained.

In Australia, any healthcare practitioner who provides clinical services must have appropriate medical indemnity insurance to meet AHPRA registration requirements.

This includes:

• Doctors (GPs and specialists)
• Surgeons and proceduralists
• Anaesthetists, radiologists and pathologists
• Psychiatrists and other non-procedural specialists
• Locums and visiting medical officers
• Cosmetic doctors and practitioners performing injectables
• Medical practices and incorporated entities

Even if you work in a public hospital, provide telehealth only, or practise part-time, you may still need individual cover. Medical indemnity insurance protects you against claims of negligence, complaints to regulators, civil liability claims and medico-legal investigations.

Medical malpractice insurance, more commonly called medical indemnity insurance in Australia, protects healthcare practitioners against claims arising from clinical practice.

It covers allegations such as:

• Misdiagnosis or delayed diagnosis
• Surgical or procedural errors
• Medication errors
• Failure to obtain informed consent
• Breach of duty of care

If a patient alleges harm due to your treatment, your insurer manages the legal defence, expert reports, negotiations and any settlement or court award (subject to policy terms and limits).

In Australia, doctors must hold compliant cover under the Medical Indemnity Act 2002 and meet AHPRA requirements.

A comprehensive medical indemnity insurance policy in Australia generally covers:

Civil liability claims
Defence costs for negligence allegations
AHPRA investigations and regulatory complaints
Coronial inquests
Privacy breaches (where endorsed)
Defamation arising from professional services
Vicarious liability for employed staff (subject to wording)

Most policies also include automatic reinstatement of the limit of indemnity and cover for past practice, provided continuous cover has been maintained.

Exclusions may apply for:

• Criminal conduct
• Intentional wrongdoing
• Practising outside your declared scope
• Known claims or circumstances not disclosed

Always review the Product Disclosure Statement (PDS) and policy wording carefully.

If you are a recent fellow or newly qualified specialist, your indemnity decision will impact your career long-term.

Consider:

• Starting in practice discounts: Some insurers provide a discount for new Fellows in their first few years of practice
• Continuous cover and retroactive date: Ensure your policy protects your entire training period and maintains an unbroken retroactive date
• Claims support: Look for access to senior medico-legal advisers, not just a call centre.
• Flexibility: Your practice model may evolve (public/private mix, procedural scope, telehealth). Choose a policy that can adapt.
• Transparent pricing: Understand how billing bands work and how premiums scale as your income grows.
• Run-off cover: Confirm your entitlements if you retire, move overseas or cease practice.

When comparing medical indemnity insurers in Australia, consider more than just price.

Key comparison points:

Policy structure
• Any one claim vs aggregate limits
• Automatic reinstatement
• Retroactive cover

Claims management
• Dedicated medico-legal team
• In-house vs outsourced claims
• Speed of response

Financial security
• Underwriter strength (e.g. Lloyd’s syndicates or global insurers)
• Reinsurance arrangements

Coverage breadth
• AHPRA and regulatory defence
• Public liability inclusion
• Telehealth and cosmetic coverage
• Run-off options

Pricing methodology
• Billing band transparency
• Discounts for part-time practice
• Claims-free recognition

A true comparison should assess wording differences, not just premium.