Discover what a medical indemnity insurance policy covers and why it’s essential for healthcare professionals. Find out more here. Medical indemnity insurance policy is a type of professional liability insurance that is primarily available for medical practitioners and for medical establishments. Also referred to as doctor’s professional liability insurance, it is specially designed to provide financial protection to medical practitioners against legal costs and compensation costs arising out of litigations when they get sued for medical malpractice, negligence, or mistakes.