A sign of things to come

More than 100 law firms in England and Wales have been forcibly closed because their insurers refused to cover them against negligence claims. The Solicitors Regulation Authority (SRA) was responsible for this enforcement action because lawyers failed to obtain proper professional indemnity insurance cover before January 5, 2014. Amongst the closed law firms a majority were classed by the SRA as larger partnerships and companies. This significant event should send a chill through the dental market and it could be a sign of things to come. Why?

Dental Professional Standards

The new GDC Professional Standard paragraph 1.8.1 gives rise to concern: “You must have appropriate insurance or indemnity in place to make sure your patients can claim any compensation to which they may be entitled.”

We all know the meaning of insurance only too well but what does indemnity mean?

Dr Desmond Turner, the MP for Brighton Kemptown, raised the matter of dental professional indemnity in the House of Commons more than a decade ago (May 20, 2003). One of his unfortunate constituents sued a dentist in court successfully but could not get a penny in damages because the dentist had no professional indemnity. More than 40 other cases were pending against the same dentist who declared himself bankrupt and left the country. There may be a number of practitioners who are unaware of the serious implications of discretionary indemnity and in this respect it would be a major benefit to bring some much needed clarity to the problem.