Physicians make two major mistakes when protecting their assets

15 Jul 2019 8:18 AM | Anonymous

July 15, 2019

Physicians Practice highlighted an encounter Ike Devji, JD had with a medical practice owner that illustrated “common mistakes many physicians still make in protecting their wealth and managing their risks.” Devji stated that there are two common mistakes physicians make: failing to adequately insure and acting late.

The first mistake, failing to adequately insure, “takes many forms and applies to both personal and professional liabilities.” Devji stated that this happened to a medical practice owner “after being in an auto accident in which the other party suffered several serious injuries.” After “her insurance carrier informed her that her liability will almost certainly exceed the limits of her automobile insurance policy,” she called Devji in hopes of getting some asset protection planning. However, her limits were only $250,000 because she was told “‘too much insurance makes you a target and means you’re more likely to get sued’” which is “exceptionally bad advice,” according to the article.

Devji also couldn’t help this medical practice owner because she had made another mistake: acting too late. It would have been “ethically and legally” wrong to help this physician because she was aware of “the exposure itself and specific notice that her coverage would be inadequate.”

Want to learn more about risk and compliance? Click on this MGMA Stat.

Nevada MGMA
PO Box 3403, Hamilton, NJ 08619