nordic news liability
Are you being set up?
Are you being set up by another dentist and you don’t even know it? Or, maybe you’re the one setting up another doctor! Putting each other in a vulnerable position can be pretty easy to do if you employ another dentist, if you’ve formed a partnership with other dentists, or if you share space with other dentists. Did you know that you can be sued for vicarious liability based on the acts of another dentist in your practice, even if you’ve never even seen or treated their patient? If any of these scenarios fit your situation or if you have a solo practice and are incorporated, let me give you some case examples to consider, that are currently in litigation (names have been changed and circumstances modified):
Case 1: Dr. One is the sole owner of 123Dentistry, LLC and also employs Dr. Two. Dr. Two’s
patient sued him and 123Dentistry, LLC, his employer. A corporate professional liability policy was never added for 123Dentistry, LLC. Consequently, Dr. One, who normally now would be responsible for the cost of the defense and any indemnity payment for 123Dentistry, LLC, is being defended under a Reservation of Rights with the understanding that if a jury finds against the corporation for negligent supervision, Dr. One will be responsible for the indemnity payment.
Case 2:
Seven doctors formed Three-Four Dentistry, LLC without purchasing a corporate professional liability policy. One of the doctors, Dr. Abcd, had a patient fatality. The attorney for the patient’s estate filed a lawsuit against Dr. Abcd and the LLC. Since there was no corporate policy, each doctor has had to open a claim against their own individual professional liability policy, even though they never saw the patient.
Case 3: Dr. Efgh and Dr. Jklm had a partnership, Five-Six Dentistry, LLC. Dr. Jklm sold his share to Dr. Efgh and then was sued by a patient. Although we did not insure Dr. Jklm, we do have coverage for Dr. Efgh and a corporate professional liability policy was in place for Five-Six Dentistry, LLC. The case is going to trial and Dr. Efgh will have to present a defense for his vicarious liability as the partner. However, because Five-Six Dentistry, LLC was added as an additional named insured for corporate professional liability coverage, Dr. Efgh will not have to bear the costs of the defense or, if there’s a verdict, any indemnity payment within the limits of the policy. You can well imagine in Case 1 and Case 2, the doctors affected by the doctor being sued are not happy about unwittingly being pulled into the case and potentially having to bear the cost of defending the corporation or possibly being reported to the National Practitioner Data Bank if there’s a settlement. And the solution for avoiding this to begin with is so simple: • If you employ or are in partnership with other dentists, you should have a corporate professional liability policy. • If you only share space and staff with other doctors, you should also consider a corpo- rate professional liability policy. • If a hygienist, dental assistant or other staff member makes an error and is accused of dental malpractice, you can be sued for, among other things, negligent hiring or supervision. • Unless you have a corporate policy in place, you may have no coverage for defense and indemnification. • If you are a solo practitioner but are incorporated, add your corporation as an additional named insured on your individual professional liability policy. If you and your continued on page 21
th e wsda ne w s · issue 8, august · 2012 · www.wsda.org · 13
Melissa Moore-Sanchez Manager, NORDIC
“Putting each other in a vulnerable position can be pretty easy to do if you employ another dentist, if you’ve formed a partnership with other dentists, or if you share space with other dentists.”