Why Is Professional Entity Coverage Important?

Some D.C.s think creating a professional entity protects their practice in the event 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 and are named in a malpractice lawsuit, chances are your entity will also be named. Therefore, it is very important to protect your entity by adding it to your NCMIC Malpractice Insurance Plan. Entity coverage (also known as corporation coverage) is available with either a shared limit of liability or a separate limit of liability. 

Shared Limit of Liability

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 face amount listed on your declarations page (such as $1 million per claim/$3 million total in a policy year). This coverage is available for no additional charge.

Separate Limit of Liability

Your entity is protected by a separate set of limits than you are. For example, if you have $1 million/$3 million coverage with separate limits for your entity, your own benefit amount would be $1 million for each claim and $3 million total in any policy year. Your professional entity would also have $1 million for each claim and $3 million total in a policy year. This coverage is available for an additional premium.

MD/DO Exposure

This entity coverage option provides coverage to the entity if it is named in a lawsuit due to the actions of an MD or DO that is affiliated with the entity. Both shared and separate limit options are available for an additional charge.

To better protect you and your practice, please contact NCMIC today at 1-800-247-8043. We will review your policy, analyze your situation and explain your options.

Please 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.

MD/DO coverage is not available in NY.

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