Demystifying Medical Malpractice Insurance

What is Medical Malpractice in Australia Insurance

Medical Malpractice Insurance protects licensed health care professionals from liability. Medical Malpractice Insurance protects  health care and medical practitioners caused by wrongful practices that result in bodily injury, property damage, and medical expenses. The costs of defending these claims are covered as well.

Medical Malpractice protects the business (entity) for their healthcare

service i.e. GP clinic, day surgery clinics, etc. Plus Medical practices have separate exposures that may not be covered by your individual practitioner insurance This includes cover for privacy breaches and errors made by practice staff Incorporated bodies i.e. Pty Ltd medical clinics as opposed to individual doctors (who need their own cover!) 

Here are the most common reasons for covering your practice-

  • Vicarious Liability (error of doctor working in a clinic, and clinic is
  • dragged into a claim)
  • Administrative errors and omissions of practice staff
  • Medicare fraud by employees
  • Disclosure of patient records in breach of privacy legislation
  • Adverse publicity causing damage to your reputation
  • Prosecutions under OH&S Laws
  • Consumer legislation breaches

Medical Malpractice Insurance Policies will-

  • Cover claims resulting in the Practices’ own professional  exposures, i.e. practice staff, nurses, reception, practice managers errors or omissions
  • Provide legal costs to defend a claim against the Practice Cover claims where a clinic has contributed to negligence in conjunction with a medical practitioner
  • Cover claims where the doctor is found to be negligent and a Practice is brought into a claim as a joint defendant

Medical Malpractice Insurance in Australia is one of the most complex areas of general insurance and is often the most misunderstood.  There is a raft of legislation which is designed to protect registered healthcare practitioners (and patient’s rights to seek compensation when mistakes occur). Contact a Medical Malpractice Insurance advisor to find out more.

This publication is general in nature and is not comprehensive or constitute legal or medical advice. You should seek legal, medical or other professional advice before relying on any content, and practice proper clinical decision making with regard to individual circumstances. Persons implementing any recommendations contained in this publication must exercise their own independent skill or judgment or seek appropriate professional advice relevant to their own particular practice. Compliance with any recommendations will not in any way guarantee discharge of the duty of care owed to patients and others coming into contact with the health professional or practice. Tego Insurance Pty Ltd is not responsible to you or anyone else for any loss su­ffered in connection with the use of this information.