What is professional entity coverage and why do I need it?

Some D.C.s 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. Instead, protect your entity by adding it to your NCMIC Malpractice Insurance Plan as a named insured. Both separate and shared limits are available:

Shared coverage
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 $1,000,000 per incident/$3,000,000 total in a policy year). This coverage is available for no additional charge.

Separate coverage
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 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 for each incident and $3,000,000 total in a policy year. This coverage is available for an additional premium.

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

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.

State exceptions do apply for KS, IN and CT. Please contact NCMIC 1-800-247-8043 for additional information.

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The NCMIC Malpractice Insurance Plan is underwritten by NCMIC Insurance Company. In the states of Florida and New York, the NCMIC Malpractice Insurance Plan is issued by NCMIC Risk Retention Group, Inc.

The terms and conditions of NCMIC's Malpractice Insurance Plan are fully explained in the policy. Policy features vary by state and may be subject to underwriting approval. For details, view this pdf.