Deciding to go from a private practice to a group practice is a significant step in a chiropractor’s career. It's a decision laden with considerations, from professional growth opportunities to financial implications, and of course, your malpractice coverage. Here are some key points to consider from a professional liability insurance standpoint if you are planning to join a group practice.
Corporation/Entity Coverage
Are you selling your practice to a group? If so, are they acquiring your legal corporation/entity, or just your building and equipment? Will there be a transitional period where your legacy corporation/entity should remain insured? Corporation/entity coverage can be canceled altogether or moved to another policy, depending on your specific needs. We recommend speaking to your business attorney with questions about when to dissolve your entity, as well as the legal liabilities of keeping the entity in open status.
Malpractice Policy Management
If you are an existing OUM policyholder, you have your own malpractice policy, so you’re in the habit of notifying OUM regarding any changes to your practice, paying your premium, and renewing your policy. If you are canceling your own individual policy to join a group’s policy, the group manages that policy. Policy management tasks like obtaining your certificate of insurance or paying premium can look different depending on the specific group, so we recommend speaking with the group’s credentialing team or a staff member that handles their malpractice policy to get clarity on how you’d be covered and what their processes are.
Tail Coverage
Are you joining a group that insures their doctors on one group policy? If so and you currently have claims-made coverage, you should consider whether to purchase an “extended reporting endorsement” (often referred to as "tail coverage") to protect your prior acts. Each group can vary significantly, so we recommend discussing with the group whether this is a requirement to join the group. Some groups require payment of tail coverage at closing regardless of what OUM offers, which is generally 30 days after cancelation of your policy.
One-Time Retirement Tail Coverage Benefit
If you’re planning to retire any time within a few years of joining a group, you remain eligible for OUM’s one-time retirement tail coverage benefit so long as you remain insured consecutively with us for five preceding years. The good news is that simply moving from one OUM policy to another does not affect your eligibility.
As you navigate the transition from private practice to a group practice, remember that there is no one-size-fits-all approach, and every situation is different. If you have questions about how best to make this transition, we would be happy to assist you! Contact OUM or your independent agent or broker to understand the nuances of joining a group.
If you are not insured with OUM, fill out our online form to receive a free, no-obligation quote!
“OUM” and “OUM Chiropractor Program” do not refer to a legal entity or insurance company but to a program or symbol of a program underwritten, insured, and administered by ProAssurance. The information contained on the OUM Chiropractor Blog does not establish a standard of care, nor does it constitute legal advice. The information is for general informational purposes only. We encourage all blog visitors to consult with their personal attorneys for legal advice, as specific legal requirements may vary from state to state. Links or references to organizations, websites, or other information is for reference use only and do not constitute the rendering of legal, financial, or other professional advice or recommendations. All information contained on the blog is subject to change.