Asset protection (in the case of medical liability) is definitely a hot topic, and a cause for concern for many doctors. Although lawsuits are less common than you would think, we still want to make sure you have the necessary insurance policies in place to cover any malpractice lawsuits, if they should arise. With all of the experience she has working with doctors and dentists, Katherine Vessenes has compiled a list of tips and tricks to set our doctors at ease:

Tip 1: Make sure that you have medical malpractice insurance set up by the employer.
- To put you at ease when it comes to the financial side, most lawsuits she has seen have been completely covered by the medical malpractice insurance.
- It is much easier and cheaper to get medical malpractice insurance for a group rather than individually, which is why employers usually have group coverage.
Tip 2: Make sure you have good tail coverage for previous stints of employment at different hospitals, as some lawsuits happen after your employment ends.
- Residents and fellows are usually covered by their training program and do not need additional tail insurance when leaving residency, but consulting with a professional is best to make sure you are never at risk of being sued.
Tip 3: Make sure that you are protecting yourself and your assets outside of the hospital. Doctors can be sued for issues outside of their workplace, simply due to the public thinking you have more money due to your title and white coat.
- Remember that you need to protect yourself in alternate ways (i.e. umbrella policy) which are recommended as you progress in your career and your net value increases.
- Umbrella policies are fairly inexpensive and are in addition to your standard insurances, like home and auto.
- Your age and net worth should help determine how much you should get insured.
Tip 4: Depending on the state in which you live, home ownership equity can be a protected asset in a lawsuit, as long as the asset is well insured!
- Having a home equity line of credit on your home will show up as a lien and therefore offers protection in a lawsuit and is a better situation than owning your home outright.
Tip 5: Consider putting extra assets in a 401k/403b account, as they are protected at federal level from lawsuits. Plaintiffs can not go after these retirement funds.
- IRA accounts are at slightly more risk than 401k/403b for lawsuits.
- The amount of protection to your Brokerage accounts varies by state, but these could be subject to garnishing from any lawsuit.
Tip 6: Consult a professional when placing assets in an LLC/Corp as there are a lot of exceptions and limitations to protecting your assets.
- Breaking up your assets will protect them from possible lawsuits more efficiently than having them lumped together.
Tip 7: Plaintiffs can only go after equity, so this means that loans/liens aren’t considered in your overall equity.

The time to get your assets protected is now; getting protected after you are sued can be too late. Make sure that you talk with your accountant or attorney to find out the most beneficial ways to protect what you have earned. This shouldn’t be something to panic over, just make sure that you are adequately covered by your insurance policies.

You can also check out the posting here, featured on Brown Emergency Medicine, or on iTunes.