Some doctors may think by creating a professional entity, their practice is protected in the case of a malpractice allegation. This isn't necessarily true. If you have formed an LLC, PC, S Corp, C Corp, or other type of legal entity, chances are, if you are named in a malpractice lawsuit, your entity will also be named. You can protect your entity by adding it to your NCMIC Malpractice Insurance Plan as a named insured. Both separate and shared limits for entity coverage (also known as corporation coverage) are available:
You and your entity will share in the limits of liability in your policy. For example, the total benefits available for any claim naming both you and your entity would be the limit amount listed on your declarations page (such as $1,000,000 per incident/$3,000,000 total in a policy year). This coverage is available for no additional charge.
Your entity is protected by a separate set of limits than you are. For example, if you have $1,000,000/$3,000,000 coverage with separate limits for your entity, your own benefit amount for indemnity coverage would be $1,000,000 for each incident and $3,000,000 total in any policy year. Your professional entity would also have $1,000,000 indemnity coverage for each incident and $3,000,000 total in a policy year. This coverage is available for an additional premium.
Note: Entity coverage does not provide personal protection for other licensed providers in the office so they must maintain their own coverage with limits equal to or greater than yours.*
*State exceptions do apply for DCs in KS, IN and CT. Please contact NCMIC 1-800-247-8043 for additional information.