Forums: Skydiving: Instructors: Re: [davelepka] Liability insurance: Edit Log

Andy9o8  (D License)

Nov 30, 2011, 6:00 AM

Views: 2192
Re: [davelepka] Liability insurance

In reply to:
form a 1-person corporation to shield their personal assets from med mal liability. I'm not giving you legal advice, but you may wish to consult an attorney in your state to explore this general idea as a TI.

This has proven to be less than effective. Somebody mentioned it upthread, somthing about personal action and being sued personally.

It's a half-measure, to be sure. Of course one can (and will) always be sued individually. But forming a corporation, and properly operating solely within the formalities of the corporation (which some incorporated individuals carelessly neglect to do), measurably increases (there is no guarantee) the individual's chances of avoiding a liability judgment in court (legal fees aside), even if the corporation is formally adjudged liable. It really does make a difference, beyond taxation considerations.

Technically, maximizing one's protection may be a package: incorporate, observe and operate within all corporate formalities, don't inter-mingle anything corporate with anything individual, and insure both the corporation and the individual. Which might just be practically unaffordable.

Another philosophy which does have some legs is that taken by "The Uninsured Relative Workshop", et al.: don't insure, and don't have substantial assets, thereby presenting a much less attractive target. Believe me, when a potential liability case walks through a plaintiff attorney's door, one of the first things he finds out, to decide whether or not to take the case, is whether & how much insurance the potential defendant(s) have.

But in any event, the OP, being an individual and a physician, may find the "uninsured" approach to be impractical to him: he doesn't want to lose his house or have his future earnings garnished (if he's in a state that permits wage garnishment to satisfy a civil judgment; not all states do).

(This post was edited by Andy9o8 on Nov 30, 2011, 6:11 AM)

Edit Log:
Post edited by Andy9o8 () on Nov 30, 2011, 6:05 AM
Post edited by Andy9o8 () on Nov 30, 2011, 6:07 AM
Post edited by Andy9o8 () on Nov 30, 2011, 6:07 AM
Post edited by Andy9o8 () on Nov 30, 2011, 6:11 AM

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