I cannot believe how niave and stupid some people are!!!!!!!!!!!

I have just had the privelege of sitting with two doctors who have 3 properties all in their own names and who do not believe they will ever be sued. And one delivers babies!!!!

Hello. Wake up. I feel sorry for these people as it is not too hard to see them losing everything through ignorance and niavety.

Moral of the story, be smart and if you are in a high risk profession or situation, do what you can to protect the wealth that you have and will have.

Sheesh. Is it too early for a scotch yet?

Hi Dale,

I'll have the scotch on your behalf since it's late over here in the UK.;)

Question: If they had professional indemnity insurance or insurance cover through their hospital employer would they still need private asset protection?

Let me rephrase that - would their assets still be at risk?

My assumption is that their insurers would cover any legal claims against them.

Now, if they were company directors I would totally agree the need for asset protection since there is no insurance for mismanagement of a company that results in the company failing which you can be sued for.

Regards, Mike
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My wife's a final year medical student. She had worked as an engineer for a few years prior to med, so she's actually quite business savvy. She's always complaining to me how naive other med students and doctors are with regards to business and investments. They just aren't trained to deal with those issues. In fact, my wife is often criticised by other med students as being "money hungry" because she enjoys educating herself about money/investment issues. Like Dale, she finds their ignorance irritating to say the least.

Doctors are covered by insurance, but it's only up to a set amount (like $5million I think). Up till now, you would like this would be sufficient to cover any claims against them. However, you've probably heard in the news lately about some plaintiffs being awarded in excess of $10 million in medical law suits, particularly obstetric related. In this case, the doctor has to fund the difference that the insurer does not cover. ie, lose all assets in their name plus/minus working the rest of your life to pay the creditors.

However, if you only ever work in the public hospital system for your entire career, supposedly the hospital will cover you for everything in the event you are sued.

I'm going out on a limb here and sounding dumb but what are the things you can do to protect the assets?

From what I've seen on this forum, family trusts appear to be the way to go - what are the other typical approaches that you could do?

I've just done some quick reading on the web and found that the professional indemnity insurance industry is in crisis because of very high fees and high payouts awarded to claimants. Some professions have to pay fees in the thousands to get minimal cover eg up to $12,000 for $1m.

NSW medical practioners treating patients are required by NSW law to have insurance cover.

I'm sure they need extra asset protection but the upfront cost could bite.

Regards, Mike
Hi dale

They are not being naive, its just the

"It wont happen to me Syndrome"

Most of us have that, and its for people like your good self to "educate" us.

Understand too that some people will pay you well for good advice and then totally ignore your recommendations, as if Id have to remind you of that.


This is one of the reasons many regional areas are really struggling to have a doctor in their area, let alone one that will deliver babies. Unless a doctor is delivering a lot of babies, the insurance costs are just too high for most of them.
I think it's sad that so many people seem to expect their doctors to be all knowing godlike creatures, instead of accepting that when it comes to humans, things go wrong sometimes. Fair enough, when they make major negligent mistakes that's not good enough, but so often things go wrong and nobody could really have predicted it.
I've had two babies, both have been medically challenging - but I'm still here. After the first one, in particular, some people told me I should sue the hospital (specfically the midwives doing my pregnancy checks) because they neglected to warn me what may happen and what to look out for, based on some signs that were showing up. But I thought, what's the point? We both made it, and that's what mattered. In the end, I figure that their were medical people who saved both our lives, so it balanced out!
Sorry for rambling, but I get really frustrated with the incredibly prevalent victim mentality nowadays. I believe in taking responsiblity for things that happen to me, not blaming other people and trying to sue them for everything.
I'm also about to set up a trust structure for my properties, because I know other people don't feel the same way.
Hi magich20

I guess the only other way to protect your assets apart from a family trust is to invest in the name of the non-medical spouse. However, in this case with both being doctors, you can't do that.

Medical insurance for O&Gs is through the roof know...something like $120k per year up front. I think they basically have to accept that the first 50 to 80 patients they see every year is going towards paying their insurance. Then after that they start working for themselves.


Thanks for understanding, and I apologise for venting . .

Insurance covers a certain amount. So, if they are covered for say $5m and someone sues for $10m - the insurance company pays out the $5m and the balance has to come from their pocket and hence everything they own goes out the window.

Imagine you have worked long and hard for many years only to lose everything because Mr or Mrs scumbag decides to sue.

Asset protection may cost a little but, what at what price do you accept poverty in od age because of inaction that could easily be avoided??

Like Lissy, I believe in personal responsibility and integrity, but, I am also not stupid enough to put everything that I own at risk, in the naive hope that everyone else in this world will think the same. Remember the deep pocket syndrome? Doctors are wealthy and so they won't miss a little if we sue them.

You work hard to create wealth so why put it at risk?

Hi Dale,
I feel like i am "reading" lasts weeks M.D.A. T.V. show!!!!!!
Maybe ya should get yours doc's to watch it!
This is their current storyline, who says "ya carnt leanrn from T.V. showws"
Who else thinks Jason Donavans "acting" is appalling?
Opps, a bit of the subject
I'll book an appointment for next week.