Certificates of Insurance – Don’t practice without them By Elizabeth Kincaid, Esq.

In very simple terms, a Certificate of Insurance is a written confirmation that the independent contractor has professional liability coverage. Generally, a Certificate of Insurance will include the name and address of the insured, the policy period, the policy number and the limits of liability. So why is this important to you?

If a malpractice allegation is made against the independent contractor with whom you are affiliated, you could be sued for vicarious liability based on the negligence of the independent contractor. If the independent contractor does not have malpractice coverage (or his or her coverage limits are minimal), your malpractice policy could be at risk. In other words, your malpractice policy may end up paying the claim. If a claim payment is made out of your individual malpractice policy, the National Practitioner Data Bank report is registered under your name.

Obtaining a Certificate of Insurance from independent contractors with whom you are doing business gives you some security that they have insurance and makes you aware of the limits of liability they are carrying under that policy. You need to make sure that their coverage is not only effective, but is an amount that is at least equal to the amount you are carrying for yourself. If you have a policy with $1 million/$3 million limits of liability, the independent contractor should have those limits, too.

If an independent contractor with whom you are doing business has sufficient malpractice insurance, the chance that your policy would be at risk because of the independent contractor significantly decreases. On the other hand, if a claim is paid under your policy and a National Practitioner Data Bank report is made against you, you will have to disclose that fact on any managed-care application and possibly when applying for employment opportunities.

Simply stated, you do not want to do business with another dental care professional if they do not have the proper professional liability insurance. The risk to you personally is too great.

Elizabeth Kincaid is chief operating officer of NCMIC Insurance Company, a subsidiary of NCMIC Group, Inc. NCMIC Insurance Company offers professional liability insurance to health-care providers, among other insurance products and services. Email: ekinkaid@ncmic.com or phone 1-800-769-2000, ext. 342.