Malpractice and Insurance
Am I required to have malpractice insurance in California? Am I required to have general liability insurance?
If your practice is a sole proprietorship, you are not required to have malpractice insurance in CA. If you are an employee of a corporation, typically it is the corporation's responsibility to acquire malpractice insurance to cover your services.
On the other hand, naturopathic corporations are required to have malpractice insurance. The regulations regarding malpractice insurance requirements for California naturopathic corporations are as follows: (Article 11, Section 4266 of the California Code of Regulations)
"§ 4266. Security for Claims Against a Naturopathic Corporation.
(a) When a naturopathic corporation provides security by means of insurance for claims against it by its patients, the security shall consist of a policy or policies of insurance insuring either the corporation or all the employed licensed persons rendering such naturopathic services against liability imposed by law for damages arising out of the rendering of, or failure to render, naturopathic services by the corporation in an amount for each claim of at least $50,000 multiplied by the number of employed licensed persons rendering such naturopathic services and an aggregate maximum limit of liability per policy year of at least $150,000 multiplied by the number of such employees; provided that the maximum coverage shall not be required to exceed $150,000 for each claim and $450,000 for all claims during the policy year, and provided further that the deductible portion of such insurance shall not exceed $5,000 multiplied by the number of such employees.
(b) All shareholders of the corporation shall be jointly and severally liable for all claims established against the corporation by its patients arising out of the rendering of, or failure to render, naturopathic services up to the minimum amounts specified for insurance under subdivision (a) hereof except during periods of time when either the corporation or all the employed licensed persons rendering naturopathic services provide and maintain insurance for claims by its patients arising out of the rendering of, or failure to render naturopathic services. Said insurance when provided shall meet the minimum standards established in subdivision (a) above."
What about general liability?
If you are an employee, the clinic's policy will cover you. If you are an independent contractor OR if you rent space you need to get your own general liability coverage.
What are my malpractice insurance options?
Malpractice coverage in California is available for naturopathic doctors through several companies, including:
· NCMIC: 1-800-769-2000(x8198)
· Sprague Israel Giles Insurance (SIG): 1-800-526-0635
· Aegis: 1-855-234-4729
