Medical Indemnity Insurance FAQs

Medical indemnity insurance provides healthcare professionals with professional liability protection when they need it most. Should a claim arise from alleged malpractice, a clinical error, or an omission in your care, your policy covers the cost of your legal defence as well as any damages or settlements awarded. For any consultant or specialist in private practice, it is a fundamental layer of protection — allowing you to focus on your patients with confidence.

Here are our most frequently asked questions regarding medical indemnity insurance (also known as medical malpractice insurance):

 

Is medical indemnity insurance a legal or regulatory requirement?

While there is no single UK law that mandates it by name, the GMC requires all doctors practising privately to hold adequate and appropriate indemnity as a condition of registration. Without it, you risk being unable to practise, as well as being personally liable for any claims made against you. For private practitioners, this effectively makes it a professional necessity.

 

What does it cover?

Medical malpractice insurance covers various aspects of professional liability for healthcare professionals and providers. This offers protection against malpractice claims of negligence arising from their medical practice.

 

Do I need separate cover if I also work for the NHS?

Yes. Your NHS work is covered under NHS Resolution (formerly the NHS Litigation Authority), but this protection does not extend to any private practice work you undertake. If you see private patients — whether in a private hospital, clinic, or your own practice — you need a separate medical indemnity policy to cover that activity. MIC arranges policies that are specifically designed for this purpose.

 

What happens to my policy if I take a career break, retire, or move abroad?

This depends on the type of policy you hold. With a claims-made policy, you will need run-off cover to remain protected for incidents that occurred during your active practice but are claimed after you stop. MIC’s claims-made policies include a minimum of 21 years’ run-off cover as standard, which protects you in retirement or if you take an extended career break. If you are moving abroad or taking a temporary break, it is worth speaking to our team to ensure your cover is appropriately adjusted.

 

Can I switch providers mid-policy, and what should I watch out for?

Yes, you can switch providers, and many consultants do so to reduce premiums. However, with a claims-made policy, the key thing to protect is your retroactive date — the date from which your new policy will cover historical incidents. When switching, you must ensure your new policy honours your original start date with your previous insurer, or you could be left with a gap in cover. MIC will guide you through this process to ensure continuity of protection, and we have significant experience handling transfers from other providers and medical defence organisations.

 

What is a retroactive date, and why does it matter?

A retroactive date is the earliest date from which a claims-made policy will cover incidents, even if the claim is made later. For example, if your retroactive date is January 2018, your policy will cover claims arising from incidents that occurred from that date onwards. If you switch insurers and your new policy does not carry over your original retroactive date, any incidents from before the new start date would be uninsured. This is one of the most important details to check when changing providers, and it is something MIC handles carefully for every client who transfers to us.

 

What is the difference between “claims-made” and “occurrence” cover?

There are two types of cover. Claims-made cover responds based on the policy you have in place when the claim is made. Occurrence cover responds based on the insurer you were with when the incident happened, regardless of when the claim is made. Claims-made cover is the most common type in the medical insurance market.

 

Do I need run-off cover with my claims-made insurance policy?

Run-off cover is part of a claims-made policy. It keeps you and your estate covered after you stop practising through retirement or ill health, for example.

The claims made policies MIC provide include run-off cover as standard for a minimum of 21 years, unless advised otherwise, so there is no need to seek this cover elsewhere.

 

Learn more about MIC’s medical indemnity insurance cover here.