Public liability insurance covers accidental injury or property damage to third parties. But, with public sector organisations having a wide range of responsibilities, it’s important to know when a medical malpractice policy may be required. Aon’s Alison Goodwin, public sector practice leader, and Lorraine Roberts-Rance, director of healthcare risk consulting, explain.
Increased pressures on public sector organisations mean they’re constantly expected to take on more and more activities. In addition, there are some traditional activities which may also stray into the remit of a medical malpractice policy depending on how they are carried out. If these activities aren’t covered by its public liability insurance, a mistake could leave an organisation seriously financially exposed.
Issues can arise when an organisation is undertaking medical and healthcare activities. Depending on the nature of what it’s doing, and who is doing it, it may be necessary to take out cover for medical malpractice.
Crossing the liability line
Most public liability policies include some cover for treatment risks. For example, it’s common to cover schools where staff may need to administer some medical treatments, for instance asthma inhalers or adrenaline auto-injectors, such as an Epipen. In these cases, appropriate training will need to have been given; pupils with allergies identified through risk assessments; and no clinical judgement must be required on the dosage.
Where there is a need to make a clinical judgement, restrictions on a public liability policy can kick in. This might be the case where care assistants who are visiting the elderly in their homes to help them get up and have their breakfast end up providing treatment for pressure ulcers or infections.
Determining when medical malpractice is required is far from straightforward. Public liability insurers’ approaches vary, so it’s essential to understand exactly what your organisation does and how your cover might respond in the event of a claim.
Understand your exposure
Engaging with colleagues across the organisation to understand the nature of the services they deliver is the first step to determine whether you need cover for medical malpractice. Information such as the type of service; who delivers it (including whether any staff hold clinical qualifications); the training and supervision they receive; and the risk assessments and record keeping processes in place, will help to identify whether there is any exposure.
This exercise should also be undertaken for any services that are contracted out to third parties, along with confirmation that appropriate insurance arrangements are in place. Even where a third party has made the mistake, your organisation may be cited in a claim, so make sure you understand what they’re doing and the type of cover they have in place.
As the nature of the services an organisation delivers continues to evolve, it’s important to repeat this exercise on a regular basis. Adding just one extra responsibility to a job specification could potentially tip your exposure from public liability to medical malpractice.
Check your cover
As well as finding out as much as possible about what your organisation does, you also need to know how your public liability insurance would respond in the event of a claim.
Insurers’ appetites and wordings do vary, especially around treatment risks. While one may be comfortable with the activities your organisation undertakes, another might have restrictions in place or regard them as outside its treatment risks definition.
Insurers often provide support, such as decision trees and FAQs, to help determine whether your organisation’s activities are covered but, if there’s any doubt, it’s worth seeking professional advice. Getting it wrong can be a very costly mistake if your insurer declines a claim.
Engage your broker
Your broker can help you to determine whether your treatment risks are covered by your public liability insurance, or if a separate medical malpractice policy is necessary.
As well as providing the reassurance that your organisation has the most appropriate liability cover, they can also help you find the right medical malpractice cover. Medical malpractice is a different market to public liability so it’s unlikely your current insurer will be able to provide cover.
There are also differences in cover and insurer appetites across the medical malpractice market. Your broker will understand these differences and be able to recommend the most appropriate solution for your organisation.
More information
To find out more about whether your organisation needs medical malpractice insurance, speak to your Aon account manager or contact Alison Goodwin
([email protected]) or Lorraine Roberts-Rance
([email protected])
About Aon
Aon plc (NYSE: AON) exists to shape decisions for the better — to protect and enrich the lives of people around the world. Through actionable analytic insight, globally integrated Risk Capital and Human Capital expertise, and locally relevant solutions, our colleagues in over 120 countries provide our clients with the clarity and confidence to make better risk and people decisions that protect and grow their businesses.
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This article has been compiled using information available to us up to 16/06/2025.
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