Self-employed and locum GPs play a vital role in the primary care workforce by providing essential cover when a practice’s permanent GPs are unavailable. Their flexibility helps ensure patients continue to receive high-quality care while supporting practices during periods of annual leave, sickness, training and workforce shortages.
In recent years, working as a freelance or self-employed locum has become a popular alternative to permanent employment within a practice. Self-employed GP work offers greater flexibility, allowing doctors to choose when and where they work, gain experience across different clinical settings and exercise their own approach to work-life balance.
What is Indemnity Insurance?
Indemnity insurance provides financial protection against claims arising from professional negligence, errors or omissions. It helps cover legal defence costs, compensation payable and regulatory matters where a covered claim is successful.
To practise medicine in the UK, doctors must have appropriate indemnity arrangements in place as required by the General Medical Council (GMC).
While it is impossible to predict the cost of a future claim, settlements can range from thousands of pounds to several million pounds. NHS Resolution has previously estimated the average settled clinical negligence claim to be around £50,000 (1).
Falling under NHS Resolution, CNSGP is the state-backed indemnity scheme. This is available to healthcare professionals, however it strictly covers claims that happened during NHS services (2).
Does the Practice or CNSGP Cover Me?
Whether you need your own indemnity insurance depends on how you work. You may be:
- Registered with a locum agency
- Working as a locum in a private practice
- Running your own business
As discussed, the state-backed scheme provides indemnity only for NHS related claims. They do not cover every medico-legal circumstance that a locum contracted to NHS surgeries may encounter and many choose to purchase additional medical indemnity for this reason.
Unlike salaried GPs, self-employed GPs do not receive statutory employment benefits such as occupational sick pay or parental leave from a practice. They are also responsible for ensuring they have their own appropriate indemnity arrangements in place as they are not covered by the CNSGP scheme if they are working privately.
Should I Choose an Insurer or a Medical Defence Organisation (MDO)?
If you find yourself in a position of needing indemnity insurance as someone who does not qualify for the state-backed protection or looking to boost your cover, you may be presented with the choice of arranging it through an insurer or MDO. Both options have advantages, and the right choice depends on your individual circumstances.
Insurance-Backed Indemnity:
| Pro’s | Con’s |
Your policy is legally binding, and insurers have an obligation to pay your claim if it is within the policy terms and limits.
Such as a limit of indemnity up to £20m which is the amount an insurer is willing to pay in the event of a claim.
Insurance brokers such as MIAB have access to a wide panel of specialist insurers and can provide tailored advice on cover and value for your scope of work. Ability to shop around at renewal
Clients must be treated fairly. Access to the Financial Ombudsman Services available if a dispute should arise with the insurer. |
Typical insurance-backed policies are claims-made. These policies will only respond where treatment occurred and where the claim is reported during the live insurance.
You may need to purchase run off cover to support longer term claims following policy cancellation at an additional premium.
Policies may be subject to an excess which is paid towards your claim. |
Medical Defence Organisation Indemnity:
| Pro’s | Con’s |
As long as membership is in place, even if a claim arises years later, your policy may still respond.
MDO’s have been known to support in non-negligence issues such as GMC matters and complaints.
Typically led by experienced doctors and allied health professionals who can advise using their personal industry knowledge. |
Claims are paid at the discretion of the MDO, meaning claim payments are not guaranteed.
Assistance varies on a case-by-case basis with no defined financial support.
Subscriptions are susceptible to sudden changes, or even refusal that leaves you without indemnity. |
If contractual certainty and clearly defined policy terms are important to you, an insurance-backed indemnity policy may provide you with sought after peace of mind. Equally, it is important to carry out your own due diligence before choosing your indemnity provider.
MIAB’s specialist insurance advisers work with healthcare professionals every day to arrange tailored indemnity insurance. They will provide you with a dedicated point of contact and be able to explain complex terms, source the most appropriate cover according to your requirements and help you navigate potential claims.
What Information Do You Need for a Quotation?
When arranging an indemnity insurance policy, insurers assess the level of risk associated with your work before providing a quotation.
If you choose MIAB, you are able to have a brief consultation with a specialist insurance adviser to help identify the most appropriate level of cover.
Before your consultation, it is useful to have the following information available:
- Average number of clinical sessions per week
- Number of weeks you expect to work each year
- Details of your anticipated clinical activities
- Income to be generated from your work
- Your GMC registration number
- Details of any previous claims, complaints or disciplinary matters
Your adviser may also ask about previous indemnity providers and any areas where additional protection may be required.
If you work as a sole trader or through a limited company, there may be further liability considerations. MIAB can review your circumstances and recommend an appropriate solution based on your individual needs.
Arrange a review of your insurance:
Book an appointment
01438 547044
References
- https://www.hughjames.com/services/medical-negligence-solicitors/medical-negligence-compensation-guide/how-much-you-can-claim-for-medical-negligence/
- https://resolution.nhs.uk/services/claims-management/clinical-schemes/general-practice-indemnity/clinical-negligence-scheme-for-general-practice/
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