Liability
Posted By: PT Cruiser on 2006-04-28
In Reply to: Liability - Desparate Housewife
I posted the message above which shows Desparate Housewife as the author. I did not sign in as Desparate Housewife, and have never used this handle, what gives? I am PTCruiser and the post is signed PTC as you can clearly see. How did Desparate Housewife get there?
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Liability for what?
I don't think that any of us who are small MTSO's carry liability insurance, but could be wrong. The doctor signs off on what we type, so they are liable for it. I have never heard of a Transcriptionist being sued but again could be wrong. I myself have never carried it in the 18 years have been doing this and prior answers to this agreed with me when this was asked previously. Who told you that it was necessary?
Liability
Don't be too sure guys. With HIPAA you may reconsider. You ARE responsible if you violate HIPAA, and even though the client would likely be sued first, they will most likely countersue you if you are the source of the violation. Your computer could be stolen, you could print a sample which is lost and turns up in the wrong place; you could deliver your work by fax and send to the wrong person, you could have someone hack or computer while on line, there are a number of ways in which you could violate HIPAA, even a big mouth speaking without thinking first could be a liability with HIPAA.
The content of what we transcribed is no doubt the dictators responsibility, but, if you represent yourself as a qualified MT, a professional, able to perform the job accurately and reliably, and if an error is missed by the dictator/signee which causes harm, to the patient, then be sure the dictator will countersue you because as a professional, you should be expected to produce a document which is accurate as to what was said.
Now I don't know about you guys, but I am not perfect. I have seen errors in content which were the MTs fault, human though we are. Like known instead of unknown, or no known instead of unknown. The thing is, if your error caused the patient to have an additional procedure which caused harm, you could be drawn into any lawsuit which results. We need to watch that saying the dictator is solely resonsible for making sure the document is accurate before signing because a reasonable person might feel that we are also responsible for accuracy in what we transcribe when it is not what was dictated. You can't have it both ways, call yourself a professional, but say I am not liable for my mistakes, the person signing the document is. I think it would be wise to carry errors and omissions insurance if your client does not. Now if you are an employee, then I think you will find your employer does carry such insurance, and I would ask. It is not because you might be sued and lose, it is because you might be sued and be unable to afford to defend youself that is my greatest concern. Lawsuits can be very expensive, even if you are not in the wrong. Just my opinion.
PTC
liability insurance
can anybody tell me what this would cost? my job offer requires this. all input is much appreciated.
liability insurance
liability insurance - can anyone tell me what i should pay a month for this?
liability insurance
okay, one more time. does anybody else have a viewpoint on liability insurance?? is this something that nobody does or is it a big insult to require it of an employee? i am in great need of this job and haven't the first idea of where to go and what to ask about this insurance. somebody, please help me.
liability insurance
the guy at accuscribe told me i had to have the insurance within 30 days or maybe take a waiver test (??) and then i would not have to have the insurance. i am so confused.
liability insurance
what company and how much do you pay? where do i go to find out?
Liability Insurance
Actually clients ARE now requiring it all over because of the HIPAA regulations. If there is a breach, they can't come after the MTSO, so the clients want some way of recouping their fines if they get them due to a breach by the MTSO. It's not just a standard clause, but one that many are writing for transcription and insisting on because of the dangers of a home-based workforce.
Liability insurance
Well as much as this board tends to not like things from AAMT, I have to tell you that the membership our company has there gave us the cheapest rates for the coverage we needed. It was well worth the cost of membership for this one.
As for HIPAA not requiring this, no it doesn't. But don't get complacent. Those little $500 fines you talk about are for EACH violation of EACH standard. With the number of standards that could be cited with one simple violation, it could end up costing a bundle. And yes, those fines go to the covered entity, who will then come back and sue the company. And by the way, and IC is just another word for a business so you have that same liability risk as the large companies. And believe me, if the covered entity comes back to sue the MT company, it won't be just the fines, it will include attorney fees and all the time it took to go through that investigation.
Liability insurance
is not necessary. Under the law, the physician is what we legal folks call THE CAPTAIN OF THE SHIP and he or she is responsible. Some MT organizations have used a fear-based reality to try to make MTs think they needed insurance (and conveniently, to sell it to them, what a coincidence) but it's all bunk. Ask any lawyer.
No liability insurance
I hope you consulted an attorney before incorporating. I have personally seen many cases in which a person thought they were safe because they were a corporation, only to have the courts rule that they were HIDING BEHIND THE CORPORATE VEIL, in legal parlance, and made them may anyway. Yours is a common misconception, but it will not work if you are sued.
No liability insurance for this MTSO because
first of all I incorporated, which you really ought to consider. The corporate shield would not only protect you any kind of transcription liability (which is in reality nonexistent) but also against IC's and employees coming after you for discrimination etc which is a far more likely occurrence than any professional liability. As far as hospital accounts requiring it - it's in their basic contract - just line it out and explain there is no liability to the MT. Incorporating would give you far more protection than $600 of liability insurance. Not only that, but I would say the price of $600 is way too expensive-- that is more than nurses are charged and they carry far more liability.
Incorporation also carries some very nice benefits in terms of paying yourself a salary and not paying SS on all the earnings that your company produces (SS should be paid on what YOU earn, not on what your corporation earns). That saves me approximately $5000 a year right there. If your service is earning more than $50K a year, I would highly recommend you invest that $600 in a consultation with an attorney and get yourself a CPA. Keep that tax money in your own pocket.
As far as the little incident with the Medicaid fraud- this is why MT's now only hold records for 30 days (long enough to do billing) and then dump 'em. Nowadays it is the doc's responsibility to archive his own stuff. With everything in data files instead of paper copies, simplest thing in the world for them to do their own archives and back ups. Think of how easy that would be when the FBI shows up at your door. Yes, sir, I have everything from April 2006. Do you want it?
Again, I would have to say liability insurance is completely unnecessary for MTSO and for IC's or employees.
Limited Liability Company
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LLC = Limited Liability Corporation - nm
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LLC - Limited Liability Company
Limited Liability Company
A noncorporate business whose owners actively participate in the organization's management and are protected against personalliability for the organization's debts and obligations.
The limited liability company (LLC) is a hybrid legal entity that has characteristics of a corporation and a partnership. An LLC provides its owners with corporate-like protection against personal liability. It is, however, usually treated as a noncorporate business organization for tax purposes.
History
The LLC is a relatively new business form in the United States, although it has existed in other countries for some time. In 1977 Wyoming became the first state to enact LLC legislation: it wanted to attract capital and created the statute specifically for a Texas oil company (W.S. 1977 § 17-15-101 et seq., Laws 1977, ch. 158 § 1). Florida followed with its own LLC statute in 1982 (West's F.S.A. § 608.401, Laws 1982, c. 82-177 § 2). At this point states had little incentive to form an LLC because it remained unclear whether the Internal Revenue Service (IRS) would treat an LLC as a partnership or as a corporation for tax purposes. In 1988 the IRS issued a ruling that an LLC in Wyoming would be treated as a partnership for tax purposes. This allowed the taxable profits and losses of an LLC to flow through to the LLC's individual owners; unlike a typical corporation, an LLC would not be taxed as a separate business organization. After the 1988 IRS ruling, nearly every state in the United States enacted an LLC statute, and the LLC is now a widely recognized business form. Many legal issues concerning the LLC are still developing.
Formation
State law governs the creation of an LLC. Persons form an LLC by filing required documents with the appropriate state authority, usually the secretary of state. Most states require the filing of articles of organization. These are considered public documents and are similar to articles of incorporation, which establish a corporation as a legal entity. The LLC usually comes into existence on the same day the articles of organization are filed and a filing fee is paid to the secretary of state.
The minimum information required for the articles of organization varies from state to state. Generally, it includes the name of the LLC, the name of the person organizing the LLC, the duration of the LLC, and the name of the LLC's registered agent. Some states require additional information, such as the LLC's business purpose and details about the LLC's membership and management structure. In all states an LLC's name must include words or phrases that identify it as a limited liability company. These may be the specific words Limited Liability Company or one of various abbreviations of those words, such as LLC or Ltd. Liability Co.
Structure
The owners of an LLC are called members and are similar in some respects to shareholders of a corporation. A member can be a natural person, a corporation, a partnership, or another legal association or entity. Unlike corporations, which may be formed by only one shareholder, LLCs in most states must be formed and managed by two or more members. LLCs are therefore unavailable to sole proprietors. In addition, unlike some closely held, or S, corporations, which are allowed a limited number of shareholders, LLCs may have any number of members beyond one.
Generally, state law outlines the required governing structure of an LLC. In most states members may manage an LLC directly or delegate management responsibility to one or more managers. Managers of an LLC are usually elected or appointed by the members. Some LLCs may have one, two, or more managers. Like a general partner in a limited partnership or an officer in a corporation, an LLC's manager is responsible for the day-to-day management of the business.
A manager owes a duty of loyalty and care to the LLC. Unless the members consent, a manager may not use LLC property for personal benefit and may not compete with the LLC's business. In addition, a manager may not engage in self-dealing or usurp an LLC's business opportunities, unless the members consent to a transaction involving such activity after being fully informed of the manager's interest.
Operating Agreement
Nearly every LLC maintains a separate written or oral operating agreement, which is generally defined as the agreement between the members that governs the affairs of the LLC. Some states call an operating agreement regulations or a member control agreement. Although some states do not require an operating agreement, nearly all LLCs create and maintain a written document that details their management structure.
The operating agreement typically provides the procedures for admitting new members, outlines the status of the LLC upon a member's withdrawal, and outlines the procedures for dissolution of the LLC. Unless state law restricts the contents of an operating agreement, members of an LLC are free to structure the agreement as they see fit. An LLC can usually amend or repeal provisions of its operating agreement by a vote of its members.
Membership Interests
A member of an LLC possesses a membership interest, which usually includes only an economic interest. A membership interest is considered personal property and may be freely transferred to nonmembers or to other members. The membership interest usually does not include any right to participate in the management of the LLC. Accordingly, if a member assigns or sells a membership interest to another person, that other person typically receives only the right to the assigning member's share of profits in the LLC. Persons who receive a membership interest are not able to participate as voting members or managers unless they are admitted as new members.
State law and an LLC's operating agreement or articles of organization provide the circumstances under which a person may be admitted as a new member. These circumstances vary. Usually the admission of a new member requires the consent of existing members, and in most cases the consent must be unanimous. In some cases the articles of organization do not allow for admission of new members. In others the recipient of a membership interest may be automatically admitted as a new member.
Member Contributions
Members of an LLC contribute capital to the LLC in exchange for a membership interest. There is no minimum amount of capital contribution, and members usually can contribute cash, property, or services. By default, the total amount of a member's capital contribution to an LLC determines the member's voting and financial rights in the LLC. In other words, unless an LLC's operating agreement provides for a different arrangement, the profits and losses of the LLC are shared proportionally in relation to the members' contributions to the LLC. For example, if a member's capital contributions constitute 40 percent of an LLC's capital, that member typically has a 40 percent stake in the LLC and has more voting power than a member with a 20 percent interest.
A member may promise a future contribution to an LLC in exchange for a membership interest. If the member later fails to make the contribution, the LLC generally may enforce the promise as a contract or sell the member's existing interest to remedy the failure.
Distributions of profits or assets to members are usually governed by an LLC's operating agreement. Most state LLC laws do not require distributions to members other than when a member withdraws or terminates membership. Members vote to determine all aspects of distributions to members, including amount and timing. Because a member's share of any distribution or loss depends on the member's share of all capital contributions to an LLC, the LLC maintains records of each member's capital contribution.
Liability
State LLC statutes specifically provide that members of an LLC are not personally liable for the LLC's debts and obligations. This limited liability is similar to the liability protection for corporate shareholders, partners in a limited partnership, and partners in a limited liability partnership. Under certain circumstances, however, a member may become personally liable for an LLC's debts.
An individual member is generally personally liable for her own torts and for any contractual obligations entered into on behalf of the member and not on behalf of an LLC. In addition, a member is personally liable to a third person if the member personally guarantees a debt or obligation to the third person. A person who incurs debts and obligations on behalf of the LLC prior to the LLC's formation is jointly and severally liable with the LLC for those debts and obligations.
Members may also become personally liable for an LLC's debts or obligations under the piercing-the-corporate-veil theory. This doctrine imposes personal liability upon corporate shareholders and applies primarily if a corporation is undercapitalized, fails to follow corporate formalities, or engages in fraud. Although the law of LLCs is still developing, piercing the corporate veil is likely applicable to an LLC that fails to follow the legal formalities required to manage the LLC. LLC statutes in Colorado, Illinois, and Minnesota specifically apply the corporate veil-piercing theory to LLCs.
A member is generally considered an agent of an LLC and thus may bind the LLC for the debts and obligations of the business. When a member has apparent or actual authority and acts on behalf of an LLC while carrying on the usual business of the LLC, the member binds the LLC. If a third person knows that the member is not authorized to act on behalf of the LLC, the LLC is generally not liable for the member's unauthorized acts. Some states also limit a member's authority to act as an agent of an LLC.
Records and Books
Many LLC statutes require an LLC to maintain sufficient books and records of its business and management affairs. This requirement varies from state to state. The books and records generally detail the members' contributions to the LLC, the LLC's financial and tax data, and other financial and management information. Like a partnership's books, an LLC's books generally must be kept at the LLC's principal place of business, and each member must have access to and must be allowed to inspect and copy the books upon reasonable demand.
Taxation
The IRS generally treats an LLC as a partnership for federal income tax purposes. The LLC's members are taxed only on their share of LLC profits. Any gains, losses, credits, and deductions flow through the LLC to the members, who report them as income and losses on their personal tax return. The LLC is not taxed as a separate entity unless it fails to qualify as a partnership for tax purposes.
The IRS will examine a state's LLC statute and an LLC's operation to determine whether the LLC qualifies as a partnership for tax purposes. Essentially, if the IRS determines that the LLC resembles a corporation more than a partnership, the LLC may not qualify as a partnership for tax purposes. Under IRS regulations, an LLC must lack two of four recognized corporate characteristics before it will be treated as a partnership for tax purposes. These characteristics are limited liability, centralized management, free transferability of interests, and continuity of life. Because every LLC protects its members' liability, an LLC almost always possesses the characteristic of limited liability. Therefore, the IRS's analysis usually focuses on the last three characteristics.
Centralized Management
A business organization has centralized management when one or more persons have exclusive authority to manage its day-to-day conduct. Most LLCs lack the corporate characteristic of centralized management because most state LLC statutes provide that members manage the LLC directly, and LLCs that do not have separate managers lack the corporate characteristic of centralized management. However, some states require LLCs to have one or more managers to manage the LLC. If an LLC's operating agreement or articles of organization require each and every member to be a manager, the LLC likely lacks the corporate characteristic of centralized management. If, on the other hand, the members designate nonmembers to manage the LLC or designate member-managers who do not own a substantial portion of the LLC's membership interests, the LLC may possess the corporate characteristic of centralized management.
Free Transferability of Interests
A business form possesses free transferability of interests when one of its owners essentially has the power to substitute another person as a new owner of the business. Most corporate shareholders, for example, may sell their shares freely and thereby transfer their ownership interest to another person, without the consent of other shareholders. A member in an LLC, however, generally may not substitute another person as a new member unless the existing members agree to the substitution. A member typically has the power only to assign his economic rights in an LLC. Thus, members of an LLC lack the ability to freely transfer substantially all of their interest in the LLC.
Continuity of Life
Continuity of life essentially means perpetual continuation without regard to the withdrawal, expulsion, or death of any member. Most state LLC statutes provide for the dissolution of an LLC upon the death, disability, bankruptcy, or withdrawal of a member. Accordingly, most LLCs lack the corporate characteristic of continuity of life, unless their operating agreement substantially changes the effect of a member's withdrawal upon the continued existence of the LLC. Many state LLC statutes also limit the duration of an LLC to thirty years, but this limitation does not affect the IRS's determination of whether an LLC lacks continuity of life.
Member Withdrawal
Members may withdraw from an LLC unless the operating agreement or articles of organization limit their ability to do so. A member must usually provide to the LLC written notice that she intends to withdraw. If a withdrawal violates the operating agreement, the withdrawing member may be liable to the other members or the LLC for damages associated with it. State law frequently sets forth the circumstances under which a member may withdraw from an LLC. In many states a member may withdraw only if she or he provides six months' written notice of the intent to withdraw. In a few states, an LLC cannot prevent a member's withdrawal.
A member who withdraws is usually entitled to a return of his capital contribution to an LLC, unless the withdrawal is unauthorized. Some LLCs instead pay a withdrawing member the fair market value of his or her membership interest. The operating agreement typically provides for the method and manner of payment of a withdrawing member's interest. State law also governs those issues.
Dissolution
Dissolution means the legal end of an LLC's existence. In most states an LLC legally dissolves upon the death, disability, withdrawal, bankruptcy, or expulsion of a member. These occurrences are generally called disassociations. Other circumstances that bring about dissolution include bankruptcy of the LLC, a court order, or the fulfillment of the LLC's stated period of duration.
Most states provide for the continuation of an LLC after the disassociation or withdrawal of a member. Continuation after a member's disassociation usually requires the remaining members' unanimous consent. Some states require that the articles of organization or operating agreement allow for the continuation of the business after a member's disassociation. Some states allow an LLC's articles of organization or operating agreement to require the continuation of the business after a member's dissociation even if the remaining members do not provide unanimous consent.
If an LLC dissolves, state law and the LLC's operating agreement usually outline the process for winding up the LLC's business. In this process the LLC pays off its remaining creditors and distributes any remaining assets to its members. The LLC's creditors receive priority. Although members may be creditors, they are not creditors in determining the members' distributive shares of any remaining assets. After the LLC pays off its creditors, and only then, it distributes the remaining assets to its members, either in proportion to the members' shares of profits or under some other arrangement outlined in the operating agreement. After an LLC winds up its business, most states require it to file articles of dissolution.
Liability insurance. I see that Accuscribe
requires it, which I actually think is a cool idea, but on researching it thru the AAMT website and insurer, I can't figure out exactly what the premium charge is. Is it around $84 a year? Or $84 a month? Do you have any rough idea of how much you pay as an IC? Thanks for the help!
Professional liability insurance
is also known as E & O insurance, short for errors and omissions. It serves to cover a professional if/when they commit an error or omit something that causes harm to their client. Doctors call it malpractice insurance.
It is very specifically NOT, I repeat NOT a part of your homeowners insurance. Professional liability insurance is LIABILITY coverage. That means it covers you if you cause harm to someone else. Insurance that would cover your personal computer is PROPERTY insurance and would indeed be part of your homeowners or renters' policy, assuming you have enough coverage for your contents and/or an electronic media enhancement to the policy.
To all MT's out there - do not ever sign something that says you will carry Professional Liabilty coverage. This has the potential for putting the liability for mistakes on you, rather than on the doctor who signs the report. It's saying that You are responsible for errors that may or may not cause harm to a patient somewhere along the line. Don't do it.
LIke poster said below, Liability insurance
would not cover your computer, homeowner's should do that. Liability is only for mistakes, and the MTSO itself should have a policy that covers their employees.
Liability insurance old news -
Some years back this type of insurance was not uncommonly required of independent contractors. Some companies made it mandatory as part of your contract. It mostly fell off as a requirement in the 1990s because the focus of responsibility began to be pushed back onto the signing physician. The doctor has malpractice insurance and statistically have been the ones getting sued. Not many MTs were being sued for this reason and those cases have dropped to nil in more recent years. AAMT offered this insurance to their members. I don't know if the Writer's Union continues to offer it.
Having heard the changes this particular company has been experiencing, I am not surprised to hear they have instituted this requirement. As they have begun to be a less than desirable employer, they are attracting substandard or less than qualified MTs. Perhaps it has become an issue for them with one or more clients, but that is speculation on my part. It is not hard to speculate on that as being an issue, though, given the downward spiral they have yet to pull themselves out of.
The fair thing for them to do would be to put it in their ad. Perhaps they instituted this change between the time you applied and the time they told you about it.
F/U on All Type Professional Liability Insurance
Just sharing this as I have never run into this request from MTSO
This is an email from Professional Liability Insurance provided through Healthcare Providers Service Organization. I goggled Professional Liability Insurance.
All Type wanted me to provide this (costly I am sure, insurance)
My reply back to email.
Thank you for the info -- (their text to me) As a Medical Transcriptionist, if you were to add or omit something to what the dictator relays to you, and a claim or incident occurs because of error or omission, you can be named in a lawsuit.
My reply to them:
No way I would be party to this
unless I had permanently stored audio (dictated) and MY original transcribed text. Only way I could prove anything. Once the report leaves me, it can be changed at will by what is called QA Quality Assurance staff or the dictator. Whoa!!! You think the doctor or QA will admit a change. Don't think so. The medical transcriber will be the fall guy.
General Liability Insurance Question for other MTSO's
We are small and need to pick up general liability insurance for our company. The MTs working for us are IC's. Just wondering who everyone else uses?
As a service, I do not carry liability insurance...on contracts,
I line out that clause. The liability for MT work is extremely low. I personally have never heard of any MT being brought into court on a transcription. Has anyone else? Therefore, liability insurance is either a) not necessary or b) if purchased, would be really really cheap as the liability is practically nonexistent. None of my clients has ever been offended that I don't carry liability. I simply tell 'em that no body does.
Actually I decided to google Professional Liability Insurance sm;
Was ask if I was licensed or certified all the choise in drop down menu were 18 different patient care catagories. Of course have no contact with patients or anybody else working at home. I guess it can be teachers or others with license etc Does not seem to fit an at home IC MT or even at company MT. I know home owner or rental insurance did not do, I called them. ALLSTATE. Ridiculous, not me.
Form an LLC (limited liability corporation) if you are an IC by filing legal paperwork SM
that way no one can sue your personal assets away, only those of your business entity, even if it is only your IC company in your name. This can be done through a lawyer or at companies such as legalzoom. this limits your liability and protects your personal assets. otherwise, they can take away all your assets, including your joint assets of your spouse.
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