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Corporation Entity Coverage Exposure

December 29, 2010

To Cover or Not to Cover?

Many physicians and surgeons practice under the protection of a corporation or entity and many don’t realize the importance of insuring that corporation or entity. In a lawsuit, plaintiff attorneys will, in their discovery process, find information on a doctors corporation. This could lead to a lawsuit naming that doctors corporation in addition to the doctor. Without having that corporation or entity listed on your policy as an additional named insured, there is no coverage in place to defend the corporation much less indemnify a loss.

As a rule, you should consider naming your corporation or entity as an additional named insured on your policy. Physicians can opt to have their corporation or entity share in their limits of liability, or have it’s own set of limits to protect from a medical malpractice claim against both the physician and the corporation. It is important to consult with a qualified attorney to set up the appropriate entity.

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