Medical liability is a pervasive concern for physicians because of the potential effects of a settlement and the costs of fighting a prolonged and costly legal battle.

While laws capping tort damages have been effective in some states, physicians often are targeted in medical liability suits, especially in states where hospitals are protected under charitable immunity provisions.

There are many nonmedical liability sources, such as liability for employees’ actions or employee lawsuits, that can put you and your family at risk.

While medical liability insurance is designed to protect personal and business assets from malpractice claims, there are limits to your coverage. Many policies explicitly exclude coverage for suits arising from activities that aren’t directly related to the patient-physician relationship. Jury awards in liability cases often are unpredictable and may exceed your coverage limits. If your liability coverage isn’t enough, your personal assets could be at risk if they aren’t sufficiently protected. Even when physicians try to shield their assets by putting them in the name of a child or spouse—financial information may still become unshielded.

You’ve worked hard for what you own, and you want to keep it safe. While no asset-protection strategy is suitable for everyone, there are many tools at your disposal to help protect you and your family from costly litigation.

Some of the ways to protect your assets include the following:

  • Umbrella insurance policies to expand your liability coverage
  • Trusts and other ownership strategies
  • Advanced risk-management techniques
  • Investment diversification

Asset protection and protecting yourself from liability are two very big pieces of the healthcare industry’s wealth-creation puzzle. The better you can protect your assets from creditors, litigators, and malpractice claims, the more you’ll have to build a prosperous future for you and your family.

You’re busy with your practice, but you still need your portfolio to work just as hard as you do. One smart move is to seek the guidance of a financial professional that can help find coverage you need. Contact our office today at (603) 261-3736.


  • Adapted from FIG Healthcare Industry Whitepaper