All About Professional Indemnity – Part 2

Recap of Part 1:
In the previous post, we saw a basic introduction of what is Indemnity & how it’s important for doctors to safeguard their career. We had a closer look at ‘How much Professional Indemnity do you need?’ & ‘What Does the Professional Indemnity Cover?’. Now let’s dive in to part 2 of All About Indemnity;

How Long Does Professional Indemnity Last?

The type of policy is the criteria that decides the duration of the professional indemnity for doctors.

·      Retroactive Coverage: This policy offers retroactive coverage, ensuring protection for incidents before the policy start date.

·      Claims-Made Policy: This policy covers claims made during the policy period, regardless of when the alleged incident occurred. Continuous renewal is essential to maintain coverage.

·      Occurrence-Based Policy: This policy covers incidents that occurred during the policy period, even if the claim is made after the policy has expired.

The duration of the professional indemnity for doctors varies. The policy team always helps the doctors carefully review and understand the duration and limitations of coverage.

Is Professional Liability the Same as Professional Indemnity?

Although the terms ‘Professional Liability’ and ‘Professional Indemnity’ have often been exchanged without being noticed, they have a subtle difference:

·      Professional Liability: This term is used for any legal responsibility that arises due to the professional services, together with indemnity claims.

·      Professional Indemnity: This term denotes specific insurance, which is designed to protect against claims of breach of duty, negligence, or malpractice.

In addition, professional indemnity is a subset of professional liability insurance, constituted for specific professions like law and medicine.

How to Calculate Professional Indemnity Insurance?

Professional indemnity insurance for doctors in India can be calculated following several steps. Insurance premiums depend upon many factors, such as income, risk, specialty, and coverage need.

·      Risk: Identifying the risk involved with the specialty is very important. As the high-risk specialty is directly proportional to the higher coverage limits.

·      Income: The annual income should be used as a baseline, the coverage amount of 2-3 times your income is a general guideline.

·      Coverage need: It is always suggested to distinguish between individual or group coverage, understanding what is covered such as legal cost, compensation claims, etc, and excluded is also important.

To know the best rates for Professional Indemnity, click here: https://policyera.com/products/professional-indemnity-insurance/