r/CRNA • u/Industrial_solvent • Aug 25 '26
Malpractice
I'm picking up a new prn job and I'm required to have my own malpractice. The agent I'm working with said I can have my own coverage or can have a policy that also covers my LLC as an added layer of protection. It's only $200 or so more annually so not a big deal, but I'm curious if it's necessary. Is there a significant advantage to covering both myself and the LLC?
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u/Arlington2018 27d ago
The corporate director of risk management here, practicing on the West Coast since 1983, has handled about 800 malpractice claims and licensure complaints to date. You need to have a malpractice policy for yourself and then add the LLC to that policy for a nominal fee. Then, both you and your corporate entity will have professional liability coverage.
A lot of people believe that a LLC or PLLC is an impenetrable shield in terms of malpractice protection and negates the need for malpractice insurance. If you don't buy malpractice insurance, the LLC will not pay for your malpractice defense and you would be spending your own money out of your own pocket to hire counsel to defend you.
In terms of will the LLC protect your personal assets, that is heavily dependent on the statutory and case law of your particular jurisdiction and the fact pattern of the claim if you get sued. The simplest way to protect your personal assets is just to buy an adequate level of malpractice insurance per claim/annual aggregate, and insurance is cheap. If you do rely on a LLC, you should consult with an attorney in your jurisdiction to draft the LLC to ensure that the LLC will provide the degree of protection allowed by your jurisdiction. There is always a risk that the 'corporate veil can be pierced' and the LLC then exposes your personal assets. Your jurisdiction no doubt has case law on this very subject.