At its best, continuity of cover on a locum insurance policy means that, following a claim, the insurer won’t alter the underwriting terms of the policy.  So Dr Bloggs can rest assured that, even though he’s off time and again with a bad back,  his locum insurance will pay out for repeated claims.

So shouldn’t all policies have ‘continuity of cover’ automatically built in?  And, if not, why not?  The financial advisers among you, who may be more used to IP than to locum insurance, may well look askance at the whole topic,  thinking ‘don’t all policies work this way?’. 

Clients, including the practice manager I spoke to last week, will wonder how important ‘continuity of cover’ actually is and may be deterred from buying cover because they can’t decide between the expensive policy which includes this cover and the cheaper one which doesn’t.

So, as you’ve guessed, it comes down to price.  In the world of locum insurance, most policies do not offer continuity of cover and, although there are a few providers who offer locum insurance following an IP model, most business tends to be written on an annually renewable GI basis (like house, car, travel insurance).  This means that underwriters have the scope, each year, to re-balance in-flows and out-flows of money by altering the terms of policies at renewal.

Often, a policy with continuity of cover built in can cost up to double that of locum insurance without this benefit.

So is continuity of cover worth it?

Our experience here at Practice Cover is that some practices think it is vital and others take the opposite view. 

Those in the ‘pro’ camp don’t want to worry about whether a claim this year will lead to next year’s claim being declined.  Even though it’s far more costly, they feel that saving money on their premium would be a false economy.

Other practices see it as paying for ‘permanent’ cover  even though a doctor who is regularly off ill  would take  ill-health early retirement or - and this is a rather sinister phrase we’ve  heard many times - they will be ‘managed out of the practice’.  So they decide they don’t want to pay forpermanent cover, at a significantly higher premium, to cover someone whose position isn’tpermanent.

The important thing is to be sure you know what you’re buying. If you need continuity of cover, make sure you’ve got it and if you don’t, make sure you’re not paying for something you don’t want or need.

Author: Lynda Cox, April 2012

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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