FREQUENTLY ASKED QUESTIONS
What is professional entity coverage and why do I need it?
Some NDs 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. Protect your entity by adding it to your NCMIC Malpractice Insurance Plan as a named insured. Both separate and shared coverage limits are available:
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 million per incident/$3 million total in a policy year). This coverage is available for no additional charge. (This option is not available in Connecticut unless the insured ND is the only licensed professional affiliated with the entity.)
Your entity is protected by a separate set of limits than you are. For example, if you have $1 million/$3 million coverage with separate limits for your entity, your own benefit amount would be $1 million for each incident and $3 million total in any policy year. Your professional entity would also have $1 million for each incident and $3 million total in a policy year. This coverage is available for an additional premium and will require all naturopathic employees, officers, directors, and partners to be insured with NCMIC on a group policy.
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.
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