Why excess-limits verdicts against physicians are rare and not something you need to plan for financially

There is a great scene in the movie RED (Retired, Extremely Dangerous) in which John Malkovich invites Bruce Willis and Mary-Louise Parker “in to see the place.” Instead of heading toward the house, which is in plain view, Malkovich lifts the hood of a junked car, revealing a stairway down into the bunker that is his real abode. Parker, befuddled, asks, “What’s the house for?” Malkovich, intent on protecting himself from assassins and scornful of Parker’s ignorance, scoffs, “Decoy, of course.”

Not all of us have been advised to live in a hidden bunker, leaving our house vacant in order to protect against black-op hit teams, but if you’re a physician, it’s almost a certainty that you’ve heard that you should dig a figurative bunker for your assets (ie, take steps to shelter your assets from being taken away in the event of an excess-limits verdict in a medical malpractice case). Not only have all physicians heard this bit of unchallenged wisdom, but for those who want to heed such advice, there are plenty of financial and legal advisors who are only too happy to take some of that money you’re trying to protect. The only problem is that the chances of your suffering an excess-limits verdict and having your personal assets attached are exceedingly small. It’s certainly more likely than the chance of a black-op hit team visiting you in the dead of night but far less than the chance you’ll one day wish you hadn’t “protected” your assets.

Consider your own experience. We’ve all heard the advice: “Protect your assets.” “Put your house in your spouse’s name.” “Establish a trust.” “I know a financial advisor who can fix you up.” And we’ve all heard of those multi-million dollar plaintiff verdicts that just happen to be in excess of the defendant doc’s insurance coverage. But even though you’ve heard all this advice, do you actually know of many cases—or even a single case—where physicians have had their personal assets taken away? Probably not. Although such cases can theoretically occur, in reality, they are exceedingly rare. Here’s why.

“And we’ve all heard of those multi-million dollar plaintiff verdicts that just happen to be in excess of the defendant doc’s insurance coverage. But even though you’ve heard all this advice, do you actually know of many cases—or even a single case—where physicians have had their personal assets taken away? Probably not. Although such cases can theoretically occur, in reality, they are exceedingly rare.”

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