Clarification from the MPS on corporate malpractice if locuming as a limited company

28th November 2016 by NASGP

Clarification from the MPS on corporate malpractice if locuming as a limited company

Several NASGP members have raised concerns through the NASGP Facebook group after being contacted by some practices stating that, since they’re operating as a limited company, they need to take out separate insurance against malpractice:

Not having corporate malpractice insurance or indemnity for your company is placing your Directors at serious risk of having to declare the company insolvent or fund expensive court costs and compensation should a claim be brought against it.

Were this the case, this could be a major inconvenience, not to mention additional cost, for locum GPs operating as a limited company.

Fortunately, the Medical Protection Society have come straight back to us after we asked for clarification with this advice for their members to clarify this situation, and we’re expecting other defence organisations to issue similar advice to their members too.

Update – fellow NASGP member Joanne Gregson, who first brought this to light, has notified us via our Facebook group that she has also received confirmation from the MDU, subject to a small additional payment. In all cases, our recommendation is that, whilst working as a limited company, you inform your medical indemnity provider if you work through a limited company.

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Dr Daphne Hazel

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