Let’s look at a 6 partner practice where, until now, they have not bothered with locum insurance as they simply cover for each other.

Then consider the partner I saw the other day who was exhausted after yet another 15 hour day, covering for a colleague who was off sick.

To insure the 6 partners, for £1,000 a week per person, would cost the practice a total of £4,250 a year on our most extensive locum insurance policy. Or they could choose a policy with fewer benefits – but which would still pay out £1,000 a week per person - for as little as £2,160 a year. (You will need to check with your accountant, but this should be tax relievable as a business expense.)

This would mean that if one of the doctors is unable to work for 4 weeks or more, £1,000 pw would be paid to the practice for up to 52 weeks, contributing towards a locum or to compensating a colleague who has to provide cover. If more than one doctor is off at a time, multiple payments would be made.

Of course, a weekly sum of £1,000 per person may be too little to entirely fund a locum but, when trying to balance the practice’s books, it can sometimes make sense to take out some locum insurance rather than none at all. The practice can keep a lid on the overall premium knowing that, should long term illness strike, they will receive a meaningful contribution towards their locum costs.

The opinions presented in this blog are solely those of the author on behalf of Practice Cover Limited and they do not constitute individual advice.

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