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Corporate Malpractice Cover

Some GPs perform some of their clinical activities under the auspices of a medical services company. This can have tax benefits. However a recent case has highlighted a potential problem with this arrangement.

A doctor working for his own medical services company was named in a clinical negligence case. His indemnifier agreed to support him for his clinical negligence claim. However the claimant has also sought damages from the company, and the indemnifier will not support the directors of this company, which were the doctor and members of his family. The company did not have directors malpractice insurance, and thus the directors were personally liable.

The LMC thus advises all doctors who use such an arrangement to also purchase directors malpractice insurance.