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NY Medical Malpractice: Professional Entity Coverage

NY Medical Malpractice: Professional Entity Coverage

8 Jan 2015
8, Jan Jan, 2015

Do you need to cover your Professional Entity against potential malpractice lawsuits?

It is important for physicians and practices to understand ‘who’ and ‘what’ is covered under a medical malpractice insurance policy, as well as the limits and exclusions.

Practices should strive to obtain coverage for the physicains, the Entity (LLC, Partnership or Corporation, PC), as well as any licensed employees.

An employer can be held liable for the acts of the employees. If there is a professional corporation or Entity, that Entity may hold the business assets or accounts receivable. It is quite conceivable that the Entity may be named in a lawsuit that is primarily against one of the physicians or employees of the Entity. This makes it extremely important to ensure that the issue of Entity coverage is addressed in your malpractice policy.

Most malpractice insurance carriers offer entity coverage with shared limits to solo practices, usually without charging additional premiums. However, if there are two or more practitioners in the group, you can get separate limits of liability for the Entity. This Entity coverage is offered at no additonal premium by some carriers, while others may charge upto an additional 10% of the groups total premium to add this coverage.

Separate limits of coverage of $1M each claim/$3M Aggregate may be available to a Professional Entity. A Professional Entity is the ‘Professional service corporation (PC), Professional LLC, Partnership or LLP’ of an insured physician.

To be eligible for coverage, the Professional Entity must meet the following eligibility requirements:

PRI (Physicians’ Reciprocal Insurers)

PRI provides Entity coverage to a physician groups (such as a PC or PLLC) for no additional charge. The physicians and extenders in the group would have to meet PRI’s underwriting criteria AND be insured by PRI in order to qualify for this coverage. This is a huge savings for groups: Some other carriers can charge upto 10% of the total premiums to add Entity coverage.


MLMIC can provide Entity coverage for an additional charge. This premium charge is calculated as a percentage of the total premiums for all physicians in the group combined. Additionally:

  • MLMIC must insure at least 75% of the members and/or employed physicians of the entity;
  • The Professional Entity must be incorporated in NY State;
  • Members and employed physicians, surgeons or physician extenders in the practice must be acceptable based on MLMIC’s underwriting standards; and
  • All members, employed physicians and/or physician extenders must carry individual limits of insurance of at least $1M/$3M.

Risk Retention Groups:

Entity coverage guidelines differ amongst RRGs. While most RRGs (Such as Medpro RRG) offer separate limits of coverage for the Entity, the additional premiums charged may differ from one carrier to the other. It would be advisable to review all possible options before deciding on the best possible malpractice insurance solution for your practice.

For more information, and to explore all your options, please contact PriMed Consulting at 800.528.3758. Email: PriMed Consulting is an independent medical professional liability agency, serving NY & NJ.

Source: Carrier websites

New Jersey Health Information Technology Extension Center (NJ-HITEC)

5 Dec 2012
5, Dec Dec, 2012

EMR Meaningful Use:

Under the Health Information Technology for Economic and Clinical Health (HITECH) Act, eligible health care professionals and hospitals can qualify for Medicare and Medicaid incentive payments when they adopt certified EHR technology and use it to achieve specified objectives. Eligible professionals and hospitals may qualify for incentive payments for the adoption, implementation, upgrade or demonstration of meaningful use of certified electronic health record technology. To qualify for incentive payments, standards of meaningful use requirements must be met either by Medicare or Medicaid EHR incentive programs.

The New Jersey Health Information Technology Extension Center (NJ-HITEC) is a federally recognized Regional Extension Center program funded through the recovery act and supported by the New Jersey Institute of Technology. Under the guidance and oversight of the Office of the National Coordinator and administered by the New Jersey Institute of Technology, NJ-HITEC’s program will assist 5,000 New Jersey area primary care providers by providing hands on staff, services, and technology. The same services are available to specialists for a fee that is dependent on the level of service and support required by a practice.

-HITEC’s service offering includes education and training activities, membership in the regional extension center, assessment of current office practices, workflows and technical capabilities; recommendations of appropriate EHR solutions that meet end-user specific needs; coordination of services to implement, adopt, and use new technologies appropriately and the assurance that every member of the regional extension center can meaningfully use these systems. Visit for details.

EMR Discounts

Physicians and practices that successfully implement EMR and EPW are eligible for discounts on their medical malpractice insurance. NJ-HITEC members who satisfy certain requirements can qualify for exclusive med-mal discounts which are in addition to all other discounts. This program is available for physicians who have their medical malpractice insurance through MDAdvantage of NJ.

For more information or questions regarding your medical malpractice insurance, please call PriMed Consulting at 800.528.3758. Email: