| By :
Brent Ford
When running a healthcare business, many circumstances can arise wherein a doctor finds himself liable for mistakes. Due to this risk, buying professional indemnity insurance is important. This type of coverage is designed to protect businesses from the costs of a legal defense in the event of a blunder or error. 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. Keep in mind that potential risks are always just around the corner no matter what type of business you are in. Getting insured can prevent risks from entering your business and thus protecting you from financial damage. As the saying goes, 'Prevention is better than cure'. Since there is already a way to prevent your business from failing such as getting an indemnity insurance, why wait until its too late and you're suffering from a huge financial loss? Therefore, even if you are very secure with your products and services, there is still the possibility that a client or customer will seek compensation if your product or service did not meet their expectations.
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