Why do we need professional indemnity insurance?

In today’s litigious society, without taking steps to protect yourself, you and your practice can be exposed to potentially damaging claims. If your actions as a rehabilitation provider are found to have caused or even contributed to an injury, loss or damage, you would be liable to pay compensation and your reputation potentially damaged. You could also be vicariously liable for the actions of health professionals that you employ.

There’s a variety of interactions to consider in assessing the scope of those who may seek to claim against you or your practice, including:

• Government authorities
• Agents / intermediaries 
• General Practitioners
• Employees
• Patients / incapacitated workers.

Professional indemnity insurance forms an important part of your protection against the risk of claims. Professional indemnity cover transfers the financial risks associated with defending a claim and in meeting a settlement award in a finding of negligence. 

Your professional indemnity insurance also gives you access to quality representation to support and defend you against allegations of negligence.

How can we look to reduce our exposure to risk? 

The ideal situation is to avoid incidents occurring at all. Insurance goes a long way to protecting you against financial loss, but it can only go so far in protecting your reputation as a provider of rehabilitation services, which is of the utmost importance. This is why addressing areas of risk to reduce the likelihood of claims occurring is important. 

• Promote sound communication and documenting of processes 

In Guild’s experience working with many healthcare professions, the majority of claims that occur could be avoided or defended more vigorously had the practice taken more time in the key area of communication.

Given the variety of disciplines and the various people that can be involved in the rehabilitation process, there is certainly scope for misunderstanding /or miscommunication to occur. Caution needs to be exercised by professionals when commenting on other individuals involved in the process such as General Practitioners, so that they are not taken out of context or misunderstood. are integral throughout the rehabilitation process. 

• Manage patient expectations

Communication is equally important in managing patient expectations. Time and again we see claims where practitioners have contributed to unrealistic expectations, or have not made those in their care aware that the treatment they receive may be: ongoing for a long time, may not be completely successful, may need to be reviewed at a later stage. Managing expectations through clear communication with all parties concerned and having supporting documentation is critical.

Aside from these professional liabilities, there are other liabilities you may be exposed to as a rehabilitation provider, which is why Guild’s insurance policy includes cover for:

• Defamation (arising from your practice).
• Public Liability – cover against claims including visitors slips and falls.
• Goods Sold and Advice on Goods Sold.
• Trade Practices Act Cover. 

Guild’s cover also provides the following features, as an essential part of the service offering to our clients:

• Direct access to experienced legal advice.
• Cover for $25,000 legal fees for disciplinary and/or coronial inquiries.
• Continuing liability run-off cover after you retire.
• 24-7 emergency support services.      
• An award-winning Risk Services team.

Guild Insurance has more than 45 years of experience in meeting the professional indemnity and business insurance needs of allied health professionals across Australia, and delivering the level of cover and service needed in the event of a claim.

To discuss your insurance needs with a Guild representative call us on 1800 810 213 or contact us here.