Medical service contracts usually contain professional liability- related subjects in two areas:

1. "Indemnification" or "hold harmless" clauses. Some operate only in favor of the contracting entity (i.e., the physician agrees to indemnify the entity for all loss, damage, and costs arising from the service agreement). Others have a mutual indemnification clause where each party agrees to indemnify the other for its sole negligence.
   
   Either way, indemnification agreements impose substantial uninsured legal liability on a physician. Nearly all professional liability policies exclude coverage for liability assumed under contract, if greater than what a physician has under common law. Most professional liability insurance carriers counsel their insureds to have indemnity clauses removed from service agreements or to have them amended to remove the possibility of an uninsured liability risk.
   
   
2. A requirement to maintain professional liability insurance coverage. If the contract requires this, look for qualifiers such as minimum limits of liability, requirements for certificates of insurance, restrictions as to what kind of carrier is acceptable (e.g., licensed carrier only or Best's rated carrier only), and tail coverage requirements.