Doctors Can Protect Assets Through Novel Insurance Idea

Physicians have historically been concerned that if a malpractice judgment is obtained against them for more than their malpractice insurance coverage, their personal assets are subject to seizure by their creditors. For sure, the asset protection industry grew and evolved from its earliest attempts to protect their doctor clients assets in the event of a catastrophic claim. Now an insurance company is offering a product which attempts to provide insurance to cover a portion of the judgment in excess of the physician’s malpractice limit. It is called aptly enough “Asset Protection Insurance.”

The policy is written to indemnify the doctor’s spouse for the spouse’s loss. You might ask, what loss does the spouse have if the doctor spouse has a nasty malpractice hit. According to the literature provided by the agent, the spouse has an “insurable interest” in the assets of the doctor and can be so indemnified. To qualify to obtain this insurance there must be a malpractice policy covering the doctor spouse and the face amount of the Asset Protection Insurance cannot exceed the limits on the malpractice insurance. Why not just purchase more malpractice insurance coverage? According to the agent it is much less expensive to buy this insurance than the added malpractice coverage. This author has spoken with and obtained sales material from the agent but has performed no further due diligence or investigation. If interested you should contact Martin Beitler at rpines@aminsure.com.