As a nurse from the UK I can relate to the frustration that this causes the Dr and the nurse.
The UK historically has not been as 'sue-happy' as the USA, although it is heading that way. That being said I agree with the comments about common sense and avoiding accusations of indecency. However, the frustrations of these doctors are born of the assumption that they are no longer regarded as professionals who treat without hidden agendas.
When I qualified from nursing school (and I interviewed for my first staff nurse position) the Royal College of Nursing released a proposal that all male nurses be chaperoned when treating female or paediatric patients. As someone who had just qualified as a paeds nurse I was asked how I would feel if I were to be chaperoned for every patient? My reply was that if the unit wanted to head in this direction then I was wasting my time interviewing for them. I got the job, stayed for two years and was very happy.
I don't know how I feel about chaperoning. Common sense - yes, lack of faith by my employers
in my intentions - maybe, suggesting to the genral public that male staff are not to be trusted - maybe, protecting staff from wrongful accusations - definately.
My summary... Go with what is safest for you, if you feel hard done by then it is a shame, if you are suspended because of someone's need to get rich quick then it would be a travesty.