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Practice Run-off cover

As an Avant Practice Medical Indemnity policyholder, when you sell or close your medical practice, a patient can still make a claim for an event that occurred beforehand. A patient may make the claim against the practice entity, not an individual medical practitioner. 

Practice Run-off cover is designed to protect the practice entity. It’s different to the Australian Government’s Run-Off Cover Scheme (ROCS), which is available to an individual medical practitioner if for example they permanently retire from private practice. Read more on ROCS here.

How do you know if you should arrange practice run-off cover?

As an Avant Practice Medical Indemnity Insurance policy holder, it’s important to consider practice run-off cover if:

  • your medical practice is acquired by another entity and there is no written agreement for them to accept liability for events that occurred before the acquisition date. The sales agreement may, in fact, require you to arrange practice run-off cover;
  • your medical practice ceases business. If the medical practice entity shown on the policy schedule no longer provides healthcare services, you may require run-off cover for the period in which your practice entity provided healthcare services; and/or
  • you cancel or do not renew cover under your Avant Practice Medical Indemnity Policy because your medical practice is acquired by another entity or your medical practice ceases business.
What you’re covered for with Avant Practice Run-off Insurance*

Covers the practice up to $20 million^ for compensation amounts the practice may become liable to pay, and the associated legal defence costs for matters including;

  • telehealth
  • breaches of privacy
  • defamation
  • failure to follow up.

^Sub-limits apply. A maximum of $20 million will be paid in a single policy period.

Covers the practice up to $500,000 in responding to an inquiry, inquest, investigation or complaint brought before a registration board, tribunal or complaints unit.

Covers the practice up to $150,000 for the legal fees associated with an inquiry, including alleged dishonest, fraudulent, or criminal conduct associated with healthcare service regarding the Medicare Benefits Scheme.

*Cover is subject to the terms, conditions and exclusions of the policy. Please read and consider the policy wording available at avant.org.au or by calling 1800 128 268.

When should you request practice run-off cover?

During the period of insurance:

  • If you plan to sell or close your practice before your Avant practice medical indemnity policy expires, contact us to request the policy go into run-off.
  • We’ll then issue run-off cover via an endorsement to your policy, until the end of the period of insurance shown on your policy schedule.

At policy renewal time:

  • We’ll offer you Avant Practice Medical Indemnity Policy – Run-off cover.
  • We may continue to make annual renewal offers, contacting you at least 14 days prior to the renewal date.
Keep your details current

Once you take out Avant Practice Medical Indemnity Policy - Run-off cover, it’s important that we have your current contact details, to issue your yearly policy renewals.

Contact details change?

Contact Member Services on 1800 128 268 as your details change and for more information.


Disclaimers

Avant Practice Medical Indemnity Policy is issued by Avant Insurance Limited, ABN 82 003 707 471, AFSL 238 765 (Avant Insurance). The policy wording is available at avant.org.au or by calling 1800 128 268. Practices need to consider other forms of insurance including directors’ and officers’ liability, public and products liability, property and business interruption insurance, and workers compensation.

*Cover is subject to the terms, conditions and exclusions of the policy. Please read and consider the policy wording available at avant.org.au or by calling 1800 128 268.

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