Policyholder Services



How do the limits work when my employed optometrist carries “shared” liability limits with me?

When an insured “shares” limits with another insured, they have one combined pool of money from which indemnity may be paid. As an example, let’s say two insureds, A and B, share limits of $1,000,000/$3,000,000. If only Insured A is named in a claim, then up to $1,000,000 is available for payment of indemnity on behalf of Insured A. Similarly, if only Insured B is named in a claim, the full $1,000,000 is available to that insured. However, if both Insured A and Insured B are named in the same claim, the total available limit to serve as indemnity on behalf of both insureds is $1,000,000. Depending upon the facts of the claim, the limit may be shared equally, with each insured contributing $500,000 toward a $1,000,000 payment, or unequally depending upon the determination of liability. In a claim with $1,000,000 in damages where Insured A is determined to be 70% at fault and Insured B is determined to be 30% at fault, $700,000 would be contributed on behalf of Insured A and $300,000 on behalf of Insured B. If damages exceed $1,000,000, Insureds A and B would be liable for any amount in excess of $1,000,000. With a shared aggregate limit of $3,000,000, the maximum that could be paid in indemnity on behalf of Insureds A and B combined for all claims reported within the policy period is $3,000,000.

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#1. Consistent return of premium.

Publicly-traded insurance companies exist to make profits for shareholders while physician-owned carriers often return profits to their policyholders. Don’t underestimate this benefit; it can add up to tens of thousands of dollars over the course of your career. OMIC has one of the most generous dividend programs for ophthalmologists and has returned more than $20 Million to our members through dividends.

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