Client Case Studies
Case Study 1
Comprehensive Planning with Integrated Asset Protection
Outcome: Malpractice Concern Resolved
A doctor purchases medical malpractice coverage from a long standing highly solvent medical malpractice insurance provider with limits of 250/750 (Risk Financing). The doctor also learns that a procedure they are performing accounts for a small percentage of their overall revenue and there is a growing trend of lawsuits due to some recent outcomes (Risk Avoidance). Dropping the procedure becomes a negotiating tool for the med-mal broker to avoid a renewal increase. Risk Financing, combined with Risk Avoidance, integrated with a cost savings and their financial and estate planning goals to take for account the high liability specialty they work within and use compliant state and federal statutes to protect their assets from being exposed to frivolous lawsuits (Risk Reduction). Through the process the doctor identifies several areas where they have been paying unnecessary taxes that free up funds for other needs (Risk Reduction Integrated with tax cost savings).
Doctor has purchased a med-mal policy as the first line of defense for their professional liability concerns. Policy has first dollar defense so the doctor has the confidence they are going to be defended at predictable cost. Additionally doctor knows that they have a “pile of money” $250,000 dollars that is not on the doctor’s personal or practice balance sheet to negotiate a settlement (with “other people’s money”). Doctor has additionally shielded all of their personal and practice assets in case of an excess judgment. More importantly, the plaintiff’s attorney will be notified early in the case that the doctor has engaged in lawful asset protection planning. Plaintiffs’ attorney will know before proceeding that if they could win an excess verdict they would not be able to collect from the doctors personal and practice assets increasing the malpractice insurance companies defense attorneys leverage to settle within policy limits.
During the planning process the doctor found several cost savings between premiums and unnecessary tax payments (Risk Reduction). Additionally, the doctor has a better presence of mind that their family will be taken care of and they are doing the best they can to work towards their goals.
Another day, another doctor served.
During the planning process the doctor found several cost savings between premiums, and unnecessary tax payments (Risk Reduction). Additionally, the doctor has a better presence of mind that their family will be taken care of and they are doing the best they can to work towards their goals.