Insight

Contractual indemnity: a strategic safeguard for consultants in private practice

Published

19 September 2025

Written by

Simon Gale

Read time

3 minutes

Contractual indemnity: as strategic safeguard for consultants in private practice

As a consultant in private practice, your professional journey is defined by clinical expertise, patient trust, and the autonomy to shape your own path. But with independence comes increased exposure to risk, whether you're managing a clinic, working across multiple sites, or leading a specialist team. In this context, medical indemnity isn’t just a regulatory requirement - it’s a strategic tool for protecting your reputation, finances, and future.

Why your indemnity model matters

Many consultants continue to rely on discretionary indemnity from traditional Medical Defence Organisations (MDOs). While these organisations have served the profession for decades, their support is not guaranteed. Discretionary indemnity means that assistance with a claim is subject to the organisation’s discretion—they may choose to help, but they’re not legally bound to do so. 

This can introduce uncertainty at a time when clarity and support are critical.

In contrast, contractual indemnity offers insurance-backed, legally binding protection. If a claim falls within the terms of your policy, it must be paid as it’s regulated by the Financial  Conduct Authority (FCA), backed by the Financial Services Compensation Scheme (FSCS), and governed by the Prudential Regulation Authority (PRA). This model helps  to provide greater transparency and reliability, allowing you to make informed decisions about risk management.

Key considerations for private practice

Contractual indemnity policies tailored for private consultants often include:

  • High-limit clinical negligence cover suitable for complex or high-value claims
  •  Vicarious liability protection, especially important if you supervise or employ other clinicians
  • Run-off cover for long-term protection after retirement or career changes
  • Support for regulatory investigations, including GMC and NHS complaints
  • Worldwide Good Samaritan cover, reflecting the realities of modern practice
  • Access to medico-legal advice and wellbeing support, helping you navigate challenges with confidence

Understanding these features can help you assess whether your current indemnity arrangements align with your professional risks and ambitions.

Seamless switching without gaps in your policy

One common concern is the risk of losing cover when switching providers. Contractual indemnity policies often include mechanisms to ensure continuity, such as retroactive cover and built-in safety nets, so you can transition without compromising protection.

Adding strategic value to your practice

Beyond risk mitigation, the right indemnity cover can support your growth. Whether you're expanding your services, entering new partnerships, or planning for succession, a robust indemnity framework enables you to move forward with confidence.

It’s worth viewing indemnity not just as a safety net, but as a strategic enabler - one that protects your legacy and empowers your practice. In a profession where reputation is everything, and where a single claim can have lasting consequences, contractual indemnity offers the certainty and support you deserve.

Click here to download Howden’s pathway through private practice guide.

Find out more.