Although there is no “silver bullet” that can provide physicians total protection from the claims of malpractice attorneys, there are several low or no cost strategies that can provide significant asset protection for physicians, or enhance the asset protection physicians may already have.
First, don’t make it easy for a malpractice attorney to “pierce the corporate veil.” You already know that practicing through a professional corporation can keep your assets safe from malpractice claims against your partners and employees. But are you making it easy for a plaintiff’s attorney to “pierce the corporate veil”? Implement the following immediately:
• Have the corporation hold regular meetings of the board of directors and shareholders, and keep minutes of these meetings.
• Sign documents for the practice only in your capacity as a corporate officer.
• Have a physicians’ lawyer review the legal, insurance, financial and tax foundations of your practice regularly to assure they are appropriate.