Mental health practice owners should always make sure they have legal protection. A professional liability or malpractice settlement or award can be expensive. This is a big risk, especially when you have other professionals that practice for your office. If you own a practice in New Jersey, you can contact a mental health professional license attorney for help with asset protection. Here are some ways you can take to help protect your personal assets from a malpractice suit.
Invest
Malpractice insurance is not just a cost; it is an investment. It covers costs like arbitration, attorney fees, court costs, punitive damages, and medical damages. As a result, you should always have coverage. Claims can occur years after an incident. Because of this, this type of insurance is typically written on a claims-made basis with a retroactive date. Claims-made covers when the claim was actually filed, provided it is for events that occurred on or after your retroactive date. You need to carefully review your coverage to make there are no gaps in coverage.
Asset Protection
Proper organization as a corporation or limited liability company can also help protect your personal assets. As a result, in case of a lawsuit, the claimant cannot normally access your personal assets to satisfy a judgment.
It is also important to keep your business assets separate from your personal assets. Because of this, don’t mix personal money with business money.
Contact a Mental Health Professional License Attorney
If you think your mental health practice could benefit from any of these, contact mental health professional license attorney firm Bowne-Barry and Barry Law for a consultation.
