You may be asking, “doesn’t liability insurance cover doctors’ mistakes?” Not totally. While liability insurance typically covers physical damage to an individual or property, it does not cover mistakes made during the course of running a business. Thus, indemnity coverage covers this gap and makes it so that the owner of the business does not need to worry about making honest mistakes that cost others money.
Although this type of professional indemnity insurance for doctors does provide some coverage against mistakes, it does not cover blatant acts of wrongdoing against others. If a doctor, for instance, purposely does something that negatively affects another, the insurance coverage will not protect him or her.
When purchasing this coverage, the premiums can vary significantly based on what type of business you’re insuring. In industries where mistakes are very costly to fix, such as the medical industry, the insurance company will typically charge a much higher premium. But in businesses where mistakes may not be as expensive to repair, the insurance premiums may be a bit smaller.
Professional indemnity insurance for doctors is sometimes sold as part of a bigger business-owners policy. With this type of insurance, the owner of the business gets a broad package that includes all of the various coverages that a business may need. Typically, this type of policy includes property damage, liability, and indemnity coverage. If a business owner already has the other types of insurance that he or she needs, an indemnity policy can also be sold individually.