Policyholder Services

Should I insure my professional entity?

OMIC recommends that all medical professional entities, whether they be sole shareholder corporations, partnerships, corporations, or limited liability corporations, carry professional liability insurance. Entities can be, and frequently are, named in suits, and the trend to include entities in liability claims is increasing. Legal expenses alone can be quite costly. In addition, owners of the entity may be brought into a claim or suit arising from services rendered by another member of the practice, and as a result, should carry coverage for their vicarious liability exposure. Although vicarious liability coverage is not extended under the physician’s individual coverage, it is included as a component of “entity coverage.”

OMIC extends coverage at shared limits, without charge, to a physician’s sole shareholder corporation if it is an extension of the physician’s private practice. As a courtesy to and at the request of our insureds, we offer separate limits to sole shareholder corporations for an additional premium. (Some states, such as PA and KS, prohibit the sharing of limits between entity and physician.) Separate limits are also extended to qualified multi-shareholder corporations and partnerships. To qualify for entity coverage, at least one (and preferably a majority of) the owners must be insured with OMIC. An additional premium applies. The entity must be named on the Declarations in order for coverage to exist.