You’ve made the savvy decision to get chiropractic insurance, and now you’re faced with several important options available to the insured. Among these options, you’ll find one for getting entity coverage with your chiropractic liability policy.
Why entity coverage matters
Entity coverage, also known as legal entity coverage, is the portion of a professional individual’s liability insurance that will cover a business entity, such as an LLC. If a client sues you, your individual liability coverage will protect you. However, if a client sues you and your corporation, your individual coverage will only protect you—not your business—if you do not get entity coverage with your policy. Your corporation could still be found liable for damages, which of course would significantly impact your finances, as well as the overall health of your business.
Shared versus separate limits
With most chiropractic insurance providers, you’ll have the option to get entity coverage with shared limits or separate limits. Shared limits on the policy mean that both you and your LLC will share the total policy limit. If it’s $1,000,000 per occurrence and $3,000,000 annual, those limits will be shared between you and your business. Commonly, chiropractors will choose entity coverage with shared limits.
However, if you want your individual limit to be $1,000,000/$3,000,000 and your business limit to be a separate limit of the same amount, you’ll need to specify that with your insurance provider and make sure you get entity coverage with separate limits. Note that there may be additional charges to have separate limits for you and your LLC or similar business entity.
Get all the information
Choosing the right liability insurance protection with the right components is an important business decision. No matter what insurance provider you finally decide to go with, make sure that you fully understand what your policy will cover—and what it won’t—so you can move forward confidently with building your business, completely satisfied that you have the best chiropractic insurance protection in place to protect you, your finances, your reputation, and your practice for years to come.