Practice Entity Incorporated?

Filing paperwork with the Secretary of State's office to incorporate puts the practice itself at risk for being sued.

Risk Management

Practice Entity Incorporated?

Many doctors don't realize that merely forming a separate entity by filing paperwork with the Secretary of State's office to incorporate puts the practice itself at risk for being sued.


Even as a sole practitioner, your clinic may be named in a malpractice action if it is set up as a separate entity.

Plaintiff attorneys have access to various resources, such as Secretary of State websites, which can be used to search for entities associated with you and your practice. It is likely that if an entity is found it will be named in any malpractice lawsuit that is filed. If your entity is not named on your policy, NCMIC would not be obligated to provide a defense for the entity. This could potentially cost you thousands of dollars. 

The solution is that NCMIC offers a shared limits of liability entity coverage option at no additional premium. So, as the owner of a chiropractic entity, e.g., an LLC, partnership, corporation or other, you can share your limits of liability with your practice entity for no additional charge. (Separate limits are also available for an additional premium.)

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.


The information in the NCMIC Learning Center is offered solely for general information and educational purposes. It is not offered as, nor does it represent, legal or professional advice. Neither does this information constitute a guideline, practice parameter or standard of care. You should not act or rely upon this information without seeking the advice of an attorney familiar with the specific legal requirements of the state(s) in which you practice. If there is a discrepancy between the site and an insurance policy you have with NCMIC, the policy will prevail.

Policy features vary by state and are subject to underwriting approval.