Medical Group "Slot Coverage," Locum Tenens & Corporate Entity Shared-Limit Audit
When a multi-physician medical group or dental practice buys a group malpractice policy, carriers frequently put the Corporate Entity (the LLC/PC) on a "Shared Limit" with the individual doctors rather than giving the Entity its own Separate $1,000,000 / $3,000,000 Limit. That means if a plaintiff sues both Dr. Smith and the Practice LLC in the same lawsuit, they must split a single $1,000,000 limit ($500k each)—cutting protection in half! Additionally, hiring temporary Locum Tenens doctors or onboarding new physicians under "Slot Coverage" without Prior-Acts ("Nose") endorsements creates silent uninsured gaps.
Surgical Practice Hit With $195,000 Uninsured Prior-Acts Gap & 80/20 Hammer Penalty After Switching Malpractice Carriers
When a surgical practice switched malpractice carriers to save 12% on premium, the new binder silently set the Claims-Made Retroactive Date to the new policy inception date and included an 80/20 Hammer Clause—leaving a claim from a procedure 14 months earlier 100% uninsured.
EndorseIQ™ verifies Item 4 of the Declarations matches the original career Prior Acts Date, replaces 80/20 Hammer Clauses with Pure Written Consent to Settle, and caps Unlimited ERP Tail at <=150%.
Check Your Full Contract PDF for Cross-Section Overrides (Free 60s Scan)
Fixing one clause alone often fails when a buried definition, exhibit, or survival clause elsewhere in your Medical & Professional Malpractice neutralizes your protection. Drop your PDF or Word (.docx) below for an instant, 100% anonymous cross-section audit.
“SEPARATE CORPORATE ENTITY LIMIT ($1M/$3M), 90-DAY AUTOMATIC LOCUM TENENS & PRIOR-ACTS NOSE CONTINUITY: (a) The Practice Entity (PC/LLC) is provided a Separate, Dedicated $1,000,000 / $3,000,000 Limit of Liability in addition to each scheduled Physician’s individual $1,000,000 / $3,000,000 tower; (b) Automatic Locum
What to Say to the Malpractice Carrier & Employer / Hospital Group
"In any serious malpractice lawsuit, the plaintiff names both the treating physician and the Practice LLC as separate defendants. If the Entity shares the physician’s $1M limit, a $1.6M verdict leaves a $600k uninsured gap. We need either a Separate $1M/$3M Entity Limit or a $2M/$4M group excess layer, plus 90-day Automatic Locum Tenens coverage."
Why they drafted it this way: By putting the medical group LLC on a Shared Limit with the treating doctor, the carrier caps its total payout on a catastrophic surgical claim at $1,000,000 even when both the doctor and the clinic are found liable.
Mandatory Audit Checklist Points
- Audit whether the Practice Entity (LLC/PC) has a Separate $1M/$3M Limit vs. a Shared Limit with the physicians
- Verify Automatic Locum Tenens coverage allows temporary substitute doctors for up to 60–90 days per year
- Confirm newly hired physicians receive "Nose Coverage" (Prior Acts Retroactive Date) or verified outgoing ERP Tail
- Check that departed physicians remain covered on the group policy for their historical treatments ("Automatic Former Insureds")
Paste Your medical group shared entity limit locum tenens nose coverage malpractice audit Section or Upload Your Full Medical & Professional Malpractice (.pdf / .docx)
Check if your draft has a hidden loophole or cross-section override. Click ⚡ Preview Sample Audit (Instant) to see a live demo in 0.2s, or upload your own PDF / Word (.docx) contract below:
EndorseIQ™ Policy & Binder Scanner
ACTIVE ENGINE: ENDORSEIQ™ (MULTI-HOP ISO & COVERAGE GRAPH)Frequently Asked Questions
What is the difference between a Shared Entity Limit and a Separate Entity Limit on a group malpractice policy?
Under a Shared Entity Limit, if a patient sues Dr. Jones and ABC Medical Group LLC for the same surgery, the total combined payout for both defendants is capped at $1,000,000. Under a Separate Entity Limit, Dr. Jones has a $1,000,000 limit and ABC Medical Group LLC has its own separate $1,000,000 limit ($2,000,000 total available for the lawsuit).
What happens to a departed physician’s prior patients on a "Slot Policy" or group policy?
If a group policy covers "Historic / Former Insureds" automatically as long as the group policy remains active, the departed doctor’s past treatments at that clinic stay covered without buying a separate tail—UNLESS the group later switches carriers and drops prior acts for former employees.
How do I redline medical group shared entity limit locum tenens nose coverage malpractice audit traps in my Medical & Professional Malpractice anonymously without creating an account?
Upload your Medical & Professional Malpractice PDF or Word (.docx) draft to ExclusionRadar.com to run the "Medical Group "Slot Coverage," Locum Tenens & Corporate Entity Shared-Limit Audit" defense cartridge 100% anonymously—with zero account registration, zero email login, and stateless in-memory processing. EndorseIQ™ flags medical group shared entity limit locum tenens nose coverage malpractice audit exposure (typically $500,000 – $1,000,000 in shared entity limit exhaustion; documented unredlined loss: $195,000 uncovered prior-acts claim & defense co-insurance haircut), checks for cross-section overrides, and exports a ready-to-send Microsoft Word (.docx) Track-Changes file.
More Medical & Professional Malpractice Redline Playbooks
View All Medical & Professional Malpractice PlaybooksDental & Oral Surgery Malpractice Audit: IV Sedation, General Anesthesia & Cosmetic Veneer Exclusions
Dentists, periodontists, and oral surgeons purchasing professional liability insurance often get bound under a "Class I (Local Anesthesia / Nitrous Oxide Only)" rating classification even when their practice performs oral conscious sedation, IV moderate/deep sedation, complex zygomatic/pterygoid implants, or facial aesthetic injectables (Botox/TMJ). If an airway complication or inferior alveolar nerve injury occurs during a procedure involving unscheduled IV or conscious sedation—or if a State Dental Board complaint is filed—the carrier invokes the "Anesthesia / Sedation Class Exclusion" to deny coverage completely.
Lawyers Professional Liability (LPL) Audit: "Fee Suit" Counterclaim Traps, Equity Stakes & Prior Acts
Law firms, CPAs, and management consultancies face three major traps in Professional Liability (LPL / E&O) binders: (1) an "Outside Business Interest / Client Equity Exclusion" that voids 100% of malpractice coverage if the firm or any partner owns as little as 5%–10% equity in the client or serves on the client’s board or as corporate secretary; (2) a "Lateral Hire / Of-Counsel Retroactive Date Restriction" that limits a newly hired attorney’s coverage strictly to work done AT your firm (which is fine), unless a "Predecessor Firm" definition error accidentally excludes your own firm’s historical merger; and (3) a "Punitive Fee-Suit Counterclaim Deductible" that doubles or quadruples your deductible if a client files a malpractice counterclaim after you sue them for unpaid legal bills.
Allied Health, Physical Therapy & Home Health Malpractice Audit: Hired/Non-Owned Auto & Abuse Sub-Limits
Home health agencies, physical therapy clinics, behavioral health groups, and medical staffing firms face two devastating coverage gaps: (1) when a separate company buys Commercial General Liability from Carrier A and Professional Malpractice from Carrier B, a patient fall from an exam table or wheelchair triggers a "Finger-Pointing Denial"—the GL carrier denies it as a "Professional Healthcare Service Exclusion (ISO CG 21 16)" while the Malpractice carrier denies it as a "Premises Slip-and-Fall"! And (2) when nurses, therapists, or aides drive their personal cars between patient homes or to run clinic errands, a serious auto accident sues the agency—which is 100% excluded under both GL and Malpractice unless a $1,000,000 Hired and Non-Owned Auto (HNOA) endorsement is bound.
Physician Claims-Made Retroactive Date & 80/20 Hammer Clause Audit: Protecting Prior Acts & NPDB Records
Every medical malpractice settlement paid on behalf of a physician—even a $15,000 nuisance payout—must be permanently reported to the federal National Practitioner Data Bank (NPDB) and state medical boards. Yet many Claims-Made malpractice binders replace "Pure Consent to Settle" with an 80/20 or 100% Hammer Clause: if you refuse to let the insurer settle a defensible claim to protect your NPDB record, you become personally liable for 80%–100% of all subsequent legal fees and excess verdicts. Worse, when changing carriers or medical groups, a Declarations page that sets the "Retroactive Date" to Policy Inception instead of your career Prior Acts Date wipes out coverage for every patient you treated in prior years.