Indemnity inflation | Typical rise is 10-20%, so why does the NASGP calculator suggest just 1%?

Depending on how much you charge and how expensive your indemnity fees are, we're hearing reports of suggestions from 0.7% to 2%.

Purely for illustration purposes, let's say you're a locum earning £100k, and your annual indemnity fee is £10k. So if indemnity goes up by 10%, it's now £11k i.e. it's gone up by £1k.

£1k is 1% of your £100k income, so if you raise your income by 1%, it'll back-cover the 10% indemnity rise.

This rise is to reimburse you for the backdated indemnity fee inflation. If indemnity goes up next year, the plan is that you'll claim at the end of next year, spread over the forthcoming year, for that indemnity inflation rise.

NASGP

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