9 April 2025
Underinsured and Exposed: Ensuring Comprehensive Coverage for Doctors
Doctors have always been, and continue to be, amongst the most trusted members of the community. But their job is not easy. The medical field is inherently high stakes, with each decision, diagnosis and treatment plan potentially having a major impact on a patient’s life. In a field where the consequences of mistakes can be severe, doctors are expected to carry the weight of not only their expertise but also the financial and legal implications of their actions.
Widespread underinsurance is a growing issue for specialist doctors within the healthcare profession. Alongside the steady rise of clinical negligence costs, malpractice claims are increasing in loss severity. In the face of potential litigation costs of GBP2 billion plus, the onus is on private doctors and consultants to ensure they have cover in place that will respond as expected if and when things go wrong.
Doctors and insurance: what are the options?
There are currently upwards of 390,000 registered healthcare professionals in the UK, each legally obliged to have suitable medical indemnity coverage in place. NHS staff are covered via state-backed NHS medical schemes; however, healthcare professionals outside the purview of NHS — i.e. private practitioners, dentists, consultants and other specialist doctors — are expected to take out their own insurance. Such individuals can opt for private insurance or discretionary indemnity plans via medical associations.
Many doctors find insurance renewals difficult to navigate, with over half unaware of the types of cover they have in place, according to research by Ipsos. It is easy to understand why. Discretionary indemnity coverage can be vague on the set limits for claims and, as doctors move through different stages of their careers or change practices, the need to update their insurance provider may be forgotten.
Experienced doctors, particularly those with many years of practice, may feel that their expertise significantly reduces the likelihood of facing legal action. While their skills and experience are undoubtedly valuable, this confidence can sometimes lead to an underestimation of the risks associated with medical practice.
Most claims, however, arise from human errors or lapses in judgment, highlighting that legal risks in medicine are often unpredictable and can affect even the most seasoned professionals. Additionally, while a Good Samaritan Act [where off-duty doctors offer to help in an emergency] doesn't require indemnity, agreeing to be present at an event as a medical provider [a Good Neighbour Act] still requires appropriate coverage to be in place. It is important to appreciate these nuances.
In the absence of a trusted broker and advisor, the above challenges can lead to inadequate insurance for the risks a doctor typically faces, leaving them vulnerable when things go wrong. As a worst-case scenario, where gaps are present in medical indemnity coverage, it can result in the individual having to pay out for all or part of a claim from their own pocket.
Going through different scenarios with a specialist broker can help doctors to think through their potential liabilities and interrogate how their insurance would respond. The General Medical Council encourages doctors to periodically review their insurance to ensure it covers the full scope of their practice.
The rising cost of premiums and the evolving risk landscape
In response to the rising cost of claims, premium rates for medical malpractice insurance across the world have been rising steadily in recent years. Doctors typically pay the highest premiums compared to other healthcare professionals, with the average annual cost being GBP8,235. Just under a quarter (24%) paying more than GBP10,000 each year for their premiums.
Such a steep financial burden can make it appealing to opt for the lowest insurance quote available. However, it is essential to check the small print and seek the advice of a specialist intermediary to ensure coverage is robust and that you won’t be left exposed in the event of a claim.
As with most areas of insurance, you get what you pay for. It is important to remember that the financial impact of a malpractice claim could be far worse than the annual cost of comprehensive insurance. It is also important to remember that the right cover is more than just an indemnity purchase. Medical indemnity comes with access to seasoned insurance and claims professionals, who are there to hold your hand through complex legal proceedings and help you build the best defence.
With so much focus on clinical negligence, other exposures — including emerging risks — can be overlooked. Coverages such as disability or cyber insurance, for instance, are essential for protecting against a broader range of professional and financial risks. In an increasingly digital world, cyber threats and personal data breaches are posing a significant challenge with the need for specialist insurance which includes incident response capabilities.
Average annual premium for Doctors
Indemnity protection
Doctors and consultants working within the NHS are generally covered by the NHS indemnity scheme, which protects them for most of their clinical work. In 2023/24, the lower than the previous year (GBP6.3 billion)Error! Bookmark not defined., it still underscores the importance of addressing these issues on a large scale.
NHS indemnity coverage has limitations for individuals who also carry out private work. It only applies to work done with the NHS and does not extend to private practice, teaching, or consultations outside the NHS. Similarly, the NHS-backed Clinical Negligence Scheme for General Practice (CNSGP) and Existing Liabilities Scheme for General Practice (ELSGP) schemes only cover clinical negligence liabilities for NHS work undertaken by practitioners and consultants in England, which is why securing appropriate malpractice coverage is essential.
Sample Case Study: Doctor’s Misunderstanding of NHS Coverage
Dr Z, a clinician working both in an NHS setting and a private clinic, was sued after a patient claimed negligence during a private consultation. Dr Z believed NHS indemnity would cover all their professional work, but the claim was filed against their private practice activities. Dr Z’s private insurance did not cover the full scope of the claim, which amounted to thousands of pounds in legal costs.
Gallagher’s Medical Malpractice Quote & Bind solution
When we protect the protectors, everyone benefits. Addressing underinsurance is key to securing doctors' financial security and peace of mind, allowing them to focus on what they do best—saving lives. Gallagher’s comprehensive medical malpractice insurance does just that: rounded coverage for robust protection. Our key benefits include:
- Secure contract of insurance underwritten by Lloyd's of London and one of the leading medical malpractice insurers.
- 24/7 Medico-legal support
- An extended reporting period can be triggered for up to 21 years upon your retirement, death or permanent disablement at no extra cost.
Ensure your practice is well protected with comprehensive malpractice coverage from Gallagher, so you can focus on what matters most. To gain a quote, please go to our online platform.
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