Asset Protection for Physicians
Asset protection for physicians is of tremendous importance because they are seen as deep-pocketed targets. Physicians have lawsuit targets on their backs because they have in their hands the thing that society values most: human health.
The medical profession is filled with tremendous legal liability. According a survey conducted by the AMA, during 2007 and 2008, there were 95 lawsuits per 100 physicians.
Why Physicians Should Seek Asset Protection
- There are very few states that have a cap on malpractice judgements, which can exceed that of your insurance coverage
- Malpractice insurance claims can be denied by your carrier
- 1 out of 4 cosmetic surgery malpractice suits are frivolous
- Surgeons make up less than 15% of all doctors, and are four times more likely to be sued
- The number of malpractice lawsuits filed per year increases annually
- You have about 25% chance of losing any malpractice lawsuit
There are legal methods to protecting assets that can be taken advantage of.
As a physician, you are seen as a “Deep Pocket Defendant.” In addition, the same survey concluded that physicians that are 55 years and up suffer eight times more lawsuits than those that are under 40. It is not that the older physicians are eight times more likely to commit malpractice. It is that they are seen to have deeper pockets. How do you protect yourself from this threat? Call one of our consultants.
Naturally, malpractice insurance is recommended. The concern is that the insurance companies search for loopholes once a claim is filed. Moreover, many lawsuits today are for far more than the insurance will cover. This is the case both in terms of coverage and policy payout limits.
We provide powerful strategies that lock your assets away in an asset protection safe and give you the combination.
Hold your practice in a corporation
Whereas, a professional corporation will not protect from professional liability, it can protect you when an employee goes to pick up supplies, lunch, etc. and pulls out of the driveway striking a passing motorcycle.
Set up an asset protection trust
There are specific trusts that provide tremendous asset protection. Not all trusts protect assets. International trusts are considered the strongest asset protection tools in the world.
Establish up an LLC
Limited liability companies (and in the past limited partnerships) provide for decent domestic asset protection. When there is a judgment against a member of an LLC, the assets within the LLC can be protected from seizure. Nevada has especially strong LLC asset protection laws. One can have additional privacy features such as a nominee manager service, keeping one’s name out of the public records. Additionally, having a Nevada office program with a phone number, mail forwarding and Nevada bank account can add extra security to the plan.
Physicians and non-physicians alike can utilize these asset protection tools. Anyone who has amassed a small or large asset base can utilize these strategies. Physicians have a special need for these tools because they are at far greater risk and are sued at a much higher rate than the general population.
For questions on these and other strategies, contact a representative at 1-800-COMPANY. That is 1-800-266-7269.