What’s the difference between Management Liability Insurance and Professional Indemnity Insurance for doctors and dentists ?
Professional Indemnity Insurance can provide financial protection/cover you for compensation claims brought against you (and potentially your business entity) by third parties for Professional Advice or Services provided which have resulted in a loss to a third party.
For example, if a patient is accidentally injured by treatment from a dentist or a doctor, who is then sued for compensation. The policy may pay for legal defence costs and fund any compensation payable.
Professional indemnity insurance claims are not generally covered under Management Liability Insurance policies.
Management Liability Insurance, for a dental or medical practice, may cover liability for loss caused by a management wrongful act such as :
– Misleading & Deceptive Conduct (often referred to as “Directors and Officers” insurance),
– Liability for an employment practices breach such as discrimination or sexual harassment (Employment Practices Liability), and
– Loss of property caused by employee dishonesty (Crime or Fidelity)
– Some insurers may also allow you to insure reasonable professional fees incurred if audited for tax purposes (Tax Audit) under a Management Liability Insurance policy
Management liability insurance is sometimes included in the Business Insurance policy of a dental or medical practice as an optional extra feature.
This information is generalised and not specific to any one type of business. Each insurer will have specific terms of what is covered by these policies and also what is excluded. These can be detailed and found in each insurer’s policy wording or Product Disclosure Statement. Contact us to find out more.
General insurance services are provided by Experien General Insurance Services Pty Ltd ABN 77 151 269 279 AFS Licence No. 430190 (EGIS) trading as Experien Insurance Services. Our website contains our Financial Services Guide for review.
