Medical Malpractice Insurance

Although specific wordings may differ between insurers, Medical Malpractice Insurance commonly
includes the following sections of cover:

 – Liability for  Bodily Injury or Illness – covers your legal liability to pay damages and the claimants’ costs and expenses in relation to claims for bodily injury that arise in the UK, including your related defence costs.  You will need to select a limit of indemnity to suit your requirements; we normally suggest a minimum of £1,000,000 limit.

There are usually sub-sections of cover, possibly with inner limits which may be lower than the core Medical Malpractice Liability Section:

 – Professional Indemnity and Breach of Professional Confidentiality

 – Loss of Documents and Breach of Data (excluding Cyber risks)

 – Loss of Reputation

 – Liable and Slander

Policy limitations and exclusions apply.  Please contact us for more information.

Price is usually determined by your annual turnover divided by the types of treatments and therapies you offer, so it is very important that you fully disclose both when arranging your Medical Malpractice Insurance.  

Claims Made Policy Wordings

One of the more complex aspects of Medical Malpractice Insurance Policies is that they are written on what is called a “claims made” basis of cover.  What this means is that any claims which arise are dealt with under the terms of a contract of insurance which is in force at the time the claim or potential claim is notified and not a policy which was in force at the time the treatment / therapy was provided which subsequently led to the claim. 

The UK Limitation Act 1980 sets the time limits for legal actions to be made against another party.  For example, in relation to bodily injury claims, the claimant has three years from the time they became aware of an injury – which in the case of an aesthetics or beauty treatment, may be some time after a treatment was provided.  This is why it is important to maintain Medical Malpractice insurance in place, even after you cease to provide all or some treatments.

The Importance of The Retroactive Date and Run-Off Cover

Because of the ‘claims made’ wording, A retroactive date is the date from which you have held uninterrupted Medical Malpractice/Professional Indemnity cover (even if you changed insurer during this time) or a date in the past from which your insurer has agreed to cover you.  Any claims that arise from events prior to this date is not covered by your insurance. 

This means that if you cancel your policy for any reason or allow the cover to lapse, there would
be a break in the retroactive date because you have allowed an interruption in continuous cover. 

Of course, it is usual that there will be periods in your life that you cease trading for different reasons.  However, in the majority of cases, insurance cover can be maintained under a “Run-Off” policy which is often at a reduced cost over time.  This means that you maintain continuous coverage from the retroactive date to the present day to protect you from any claims that may arise, months or years after you have stopped providing treatments. 

Should you cease trading for any reason, we recommend that you do not to cancel your Medical
Malpractice Insurance without first considering the implications of doing so and you discuss your Run-Off options with us.

 Main Insurance Policy Conditions

A Policy Condition is a contractual requirements written into a policy wording.  These conditions are actions your insurer contractually requires you to take for the insurance to respond should a claim occur.  This is why they are known as “Conditions Precedent to Liability”.  In other words, for the insurance to work at the time of a claim, you must show your insurer that you have complied with the conditions of the insurance policy.

Record Keeping

Medical Malpractice Insurance wordings generally include conditions in connection with the maintenance of patient/client records.  For example:

Batch Numbers

“The insured shall, at all times maintain accurate and descriptive records including but not limited to batch numbers of any injectable product, used in procedures which shall be available for inspection…”

Photographic Evidence

Before and after Photographs – In relation to certain injectable treatments, it is a requirement for a  period of at least ten years after the date of treatment.

CE Marks

Products and Devices must comply with legislation including carrying a CE or UKCA marking as applicable

Consent Forms

Approved consent forms are maintained for a period of at least 10 years and normal processes are adhered to in relation to any patient disclosures.

Qualifications and Registration

Insurers require the appropriate certified training has been completed in relation to the treatment you are seeking insurance cover for and that you maintain your registration and membership of any required certification or regulatory association.

Treatment of Minors

There are usually limitations and conditions in Medical Malpractice Polices relating to the treatment of minors.  Please be aware of this, review your policy wording and discuss the requirements with us before agreeing to treat any minors.

Employers and Public Liability Insurance

In addition to risks that may arise from the treatments and therapies you provide, accidents may arise in your place of work which cause damage or injury to employees or third parties.  Employer’s Liability Insurance is compulsory in the UK, covering employees directly employed or under a contract for services.  Many local authorities also require you to have Public Liability Insurance in order to operate your business.  These insurances will cover your legal liability for damages plus the claimant’s cost and expenses in relation of any claim for bodily injury or damage occurring in the defined territorial limits of the policy.  Defence costs are included.

Products Liability Insurance

Similar to Public Liability Insurance, Products Liability coverage extends to indemnity you for all compensation and claimant’s costs in relation your negligence causing bodily injury and/or property damage arising from any products you have sold or supplied to the claimant.  Cover is again limited to the territorial limits of the policy.

As with all insurance policies, there are exclusions and limitations.  For example, Product Recall and Efficacy are usually standard exclusions in relation to Products Liability Insurance, as is the wholesaling of products and separate insurance products may be available depending upon your specific requirements.

Standard retail and salon insurance packages may exclude Products Liability Insurance and also treatment risk; many insurers see these risks as being better covered under a specialist Medical Malpractice Insurance.  Please read your insurance documents carefully to ensure you are fully protected for Products Liability risks if you sell or supply any to your clients/patients.

It is a condition of most Products Liability Insurance that the products sold are proprietary products.  If you intend to sell non-proprietary products, you must ensure that specialist insurance has been obtained well in advance.