Your malpractice coverage protects you as a DC — but what about the practice you've built? Here's why entity coverage can be essential to protecting your practice.
Posted in Articles on Thursday, September 17, 2026
If you own a chiropractic practice, you probably think of malpractice insurance as coverage for you — the doctor. But if your practice is organized as a corporation, LLC, PLLC or another legal entity, the practice itself can also be named in a lawsuit.
That’s where adding an entity coverage endorsement to your malpractice policy comes in.
Individual coverage is designed to protect you as a chiropractor. Entity coverage is designed to protect your practice.
The good news? NCMIC offers a variety of entity coverage options for different practice types that can be added on to your individual malpractice policy. For example, shared limits of liability1 are available at no additional charge. So if you are the owner of a chiropractic entity, e.g., an LLC, partnership or corporation, you can share your limits of liability with the practice entity.
Another entity coverage option is to obtain separate limits of liability2 for claims that arise against an entity from professional services provided by the insured DC and licensed chiropractors, massage therapists, physical therapists, or any other unlicensed ancillary personnel. Options are also available for entities that employ MDs and DOs.
See how entity coverage may have benefited these practice owners.3
Solo Practitioner
Example 1: Planning for a Growing Practice
Dr. Ben White considers himself a “solo practitioner” as he is the only licensed practitioner in his clinic. His accountant advised him to incorporate for tax purposes; his tax corporation name is Ben White, DC, PC. Even though he has incorporated his practice, the doctor has individual malpractice insurance as a DC, which is appropriate for his role as the sole licensed practitioner.
Business is booming for Dr. White, so he's considering adding more licensed DCs to his practice to be able to help more patients. When renewing his malpractice insurance for the year, he mentioned a possible expansion to his representative at NCMIC. She was able to help him proactively add entity coverage, which will help protect the entity (his incorporated practice) if a licensed staff member faces a claim.
From a risk management standpoint, a practice owner or entity may be held legally responsible for the actions of their staff through the legal concept of vicarious liability. This concept is based on the legal doctrine of “respondeat superior,” which means “let the superior answer” for the actions of the employee performed in the course of employment.
Without entity coverage, Dr. White would be responsible for the claim against his entity — even though he may be protected as an individual practitioner.
Example 2: Renting Space to Other DCs
Another take on the situation would be if Dr. White did not have any employees but instead rented space to independent chiropractors. Would Dr. White still need entity coverage since the DCs are not his employees?
Yes. Though it may seem that Dr. White would not be responsible for the independent chiropractors who rent space in his office, a patient may view everyone practicing in the clinic as part of the same practice.
As a result, both the independent contractor and the practice entity may be named in a lawsuit.
Even if the practice is eventually dismissed from the case, defending the claim can be expensive and Dr. White would be left paying those expenses if his entity was not covered on his policy.
Multiple DCs in a Practice
Jack Smith, DC, owns Smith Chiropractic, LLC, and employs three DCs. Though all carry individual malpractice insurance, the practice itself, Smith Chiropractic, LLC, is not named on Dr. Smith’s policy. Therefore, any actions against the LLC are not covered.
Consider what would happen if one of the associate chiropractors, Dr. Jones, injures a patient during an adjustment, and a lawsuit ensues naming Dr. Jones and Smith Chiropractic, LLC. Because Dr. Jones has individual malpractice insurance, the doctor would be covered for the lawsuit. However, the practice — Smith Chiropractic, LLC — would not be covered because it is not named on the policy.
The practice owner, Jack Smith, DC, would then be responsible for paying defense costs and any judgments against the practice on his own.
In many instances where doctors share the care of patients during vacations or days off, multiple DCs can be named in a lawsuit involving one patient. Coordinating coverage with the same company can help reduce potential coverage gaps.
Retired Doctor
Dr. Jeff Black retired from practicing chiropractic due to a hand injury, but still owns Black Family Chiropractic, LLC, which employs two other DCs. Since he is no longer treating, he cancelled his medical malpractice policy that he and the entity were insured under.
Dr. Black pays for these doctors’ malpractice coverage, but their individual coverage does not automatically provide coverage for Black Family Chiropractic, LLC. When one of the DCs injures a patient, the lawsuit names the employed DC as well as Black Family Chiropractic, LLC.
In this situation, there would be no coverage for the clinic and Dr. Black would be responsible for funding the defense for the practice.
To ensure his entity Black Family Chiropractic, LLC, is covered, Dr. Black has two options:
- Maintain an active semi-retired or part-time status for himself instead of canceling his malpractice coverage
- Add Black Family Chiropractic, LLC as an additional insured to each of his employees' policies.
Why You Need Entity Coverage Today
As you review these scenarios, one thing is clear: If you have any degree of ownership in any entity, you should secure entity coverage (regardless of your legal structure) in addition to your individual malpractice policy.
Many doctors do not realize that the legal formation of a corporation creates an opportunity for action against that entity by its very creation.
Even if you are a solo practitioner, if you have filed any entity paperwork with the Secretary of State’s office, your practice may be named in a legal action.
To better protect you and your practice, contact NCMIC at 1-800-247-8043. We’ll review your policy and analyze your situation, explain your options, and add professional entity coverage to your policy, if desired.
1. Shared limits are not available in all states.
2. There is an additional premium for separate limits of liability. Call NCMIC for a quote.
3. Examples are based on claims’ experience with these types of allegations, but do not represent actual case files.