Understand the risk in letting your insurance lapse



In these uncertain times, many Allied Health and beauty therapy professionals are experiencing a never before seen threat to their business and livelihood. Whilst some are being forced to temporarily close, others are looking to continue to deliver services over the phone or outdoors - these are very troubling times.

If your Medical Malpractice and Professional Indemnity insurance cover if coming up for renewal, it might seem tempting to let it lapse. However there are very good reasons for keeping it up.


Is Professional Indemnity something I can do without?

If you are still practising - or intend to anytime in the next year - your insurance is essential to reducing your risk, as well as that of your clients. For a small annual fee, it covers you for any potential claims that may be made against you where your policy is triggered.

For some professionals, having Medical Malpractice and Professional Indemnity is a condition of registration to practice. So without insurance, you are effectively unable to provide services.


What is a 'claims made' policy?

Medical Malpractice and Professional Indemnity are claims made policies - which means that you are only covered by your insurance at the time a claim is made. If you let your cover lapse and a claim comes in later, your policy may not respond or support you with advice or legal assistance.

As an example, you deliver a service on 15 April. Your insurance cover comes up for a renewal on 30 April and you decide not to renew. On 7 May, the patient you treated makes a complaint or claim of damages against you - and you will have no cover, even though you had a policy at the time you provided the service.

This is important, because complaints - and especially legal claims - can take some time to surface. Without insurance you will have no access to your previous insurer's support team or specialist lawyers and you will need to defend the claim - particularly if it reaches the courts - at your own expense. This would not only be extremely stressful, but it could have a major financial impact on you personally or to your business. The cost of insurance is relatively low compared to the cost of a potential claim.


We are living in a time of great uncertainty - but please be assured that Insurance House is here to help. If you have any questions about your insurance cover with us, don't hesitate to call our Customer Service Team on 1300 659 626 or email us at customersupport@ihgroup.com.au 


Our advice is general in nature. To read the full General Advice Warning click here.





email ih@ihgroup.com.au

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