Medical Malpractice

There are several different types of indemnity insurance. In some cases, it is professional insurance which is purchased by companies or an individual because of his or her profession. In other cases, the term refers to a type of health insurance.

Professional insurance of this type protects businesses and their employees or individuals should someone make a claim against them because of mistakes or negligence. The insurance will also cover the legal costs involved in dealing with the claim.

There are some professions that must have this type of insurance. Examples of these are accountants, architects, brokers of insurance, solicitors and financial advisers. Malpractice insurance, such as is purchased by medical professionals such as physicians, is also a type of indemnity policy.

The idea is that professionals who give advice need to be covered in the event that following this advice ends up causing the client or patient harm. This can happen because the professional makes a mistake or, for example, does not take something into account such as an allergy to a particular medication in the case of a doctor.

Other types of professionals also choose to purchase insurance of this type to protect themselves. For example, consultants or agencies that work in advertising or public relations may be concerned that a client will feel they have gotten bad advice which has harmed their business.

It's important to remember that, if you decide to cancel your insurance policy, that you will probably not be covered for claims even if the event happened while the policy was in effect. In this case, or if you are in the process of changing insurance companies, you may need to get a special type of coverage that will cover you for a short time.

Because this is a special type of insurance policy, not all brokers will be knowledgeable about it. It's important, therefore, to choose one that has specific experience in this area. This will help you to ensure that you have the coverage that you really need.

Health care insurance policies that allow the insured a choice of provider can also be referred to as private indemnity insurance plans. These can either be purchased by the individual or through an employer. These kinds of policies generally have deductibles and may also require co-payments where the insured needs to pay a portion of his or her doctor's bills.

If you feel that you or your business has need of an indemnity insurance policy, it's a good idea to talk to a qualified broker. Even if it is not required, it may be advisable to keep your livelihood protected well.