BUSINESS LINE Doctor

REGION UK

CLIENT SECTOR Private Locum Consultant

TYPE OF RISK Otorhinolaryngology (ENT)

Summary

A private locum consultant had held medical malpractice cover on a claims-made basis for two years. However, due to a misunderstanding of how claims-made insurance operates, the client had unknowingly allowed policies to lapse between renewals.

As a result, the retroactive dates did not align correctly, creating potential gaps in cover for historic work.

The Challenge

The key challenge was helping the client understand the importance of maintaining continuous claims-made cover to protect prior acts.

The client believed that because they were not practising during short gaps between policies, uninterrupted cover was unnecessary. However, even brief lapses can impact protection for historic work.

In addition, the new policy needed to be structured carefully to address the complexities surrounding the client’s retroactive position and prior insurance history.

Our Approach

Working closely with London market insurers, we reviewed the client’s historic arrangements and claims-made exposure.

Following negotiations with underwriters, we secured terms to reinstate retroactive protection through an appropriate split retroactive date, ensuring relevant historic periods remained protected.

We also took the opportunity to clearly explain how claims-made insurance operates and the importance of maintaining continuous cover going forward.

The Outcome

By reviewing the client’s historic cover and negotiating with insurers, we secured protection from the original retroactive date onwards. The client was left with a much clearer understanding of their malpractice cover and the risks that gaps in claims made insurance can create.

This case highlights the importance of specialist advice when arranging medical malpractice insurance, particularly where claims-made policies and retroactive dates are involved.

- Case study prepared by Catherine Frank, Trainee Account Handler