Group Practice vs Solo Practice: Which Is More Risky from an Insurance Point of View?

- By Team Policy Era

Risk Management for Every Practice

The choice between solo medical practice and group practice isn’t just about convenience or profitability; it also brings vastly different risk exposures from an insurance and legal standpoint. While solo practitioners enjoy autonomy, they shoulder the entire burden of liability. Group practices offer shared resources, but also shared responsibility and potential internal conflict.

Whether you run a small clinic alone or are part of a multi-specialty practice with partners, understanding your risk profile is essential. And more importantly, your insurance cover must reflect the specific nature of your setup.

In this blog, we break down the unique insurance challenges of both solo and group practice and how Policy Era helps doctors secure their careers, reputations, and assets, regardless of which path they choose.

Group Practice: Shared Legal Liability

Group practice offers multiple advantages collaborative care, resource sharing, and workload distribution. However, from an insurance perspective, this model comes with its complexities.

Key Risks in Group Practice:

• Shared Legal Liability: If one partner is involved in a malpractice case, the entire practice may be legally implicated. Patients often sue the clinic as an entity.
• Unclear Accountability: In group setups where roles overlap, establishing who made the clinical decision can be difficult, complicating indemnity claims.
• Partner Disputes: Disagreements over income division, patient management or business decisions can lead to internal legal battles.
• Vicarious Liability: Even if you had no direct involvement in a particular case, you might still be held responsible under shared practice laws.

While group practice might feel “safer” due to collective functioning, the legal and financial liability can extend beyond your own actions.

Solo Practice: Total Risk on One Person

Solo practice gives doctors complete control over decisions, patient care, and profits. But that independence comes with a price: you are solely accountable for everything that happens under your roof.

Common Solo Practice Risks:

• 100% Personal Liability: In the event of a lawsuit, there’s no one else to share the legal or financial burden.
• Operational Hazards: Fire, theft, data breach or medical errors all fall directly on your head — with no shared backup.
• Burnout and Financial Downtime: If you fall ill or are temporarily out of practice, your clinic shuts down — affecting income flow and patient trust.
• Limited Legal Resources: Solo doctors often lack access to in-house legal advisors or compliance experts, increasing vulnerability.

In short, solo doctors need stronger personal insurance because there’s no institutional safety net.

Disputes Between Partners in Group Setups

One of the most overlooked risks in group practices is internal conflict. Business partnerships in medicine are often informal, with many doctors entering agreements based on verbal understanding or trust, rather than written contracts.

Common dispute scenarios include:

• Income sharing disagreements: When patient volume or consultation hours vary.
• Operational responsibility gaps: Disputes over who manages admin, HR, or finances.
• Exit or death of a partner: What happens to the clinic structure, patient files or property share?
• Negligence claims involving multiple doctors: Who is liable, and how much?

These disputes can disrupt the functioning of the clinic, damage reputations, and in some cases, result in legal action between partners themselves. That’s why having conflict resolution protocols and tailored group insurance is vital.

Different Insurance Needs for Both Setups

While all doctors need core protection such as professional indemnity, health cover and accident insurance the nature of practice demands different layers of coverage.

• Solo Practice Insurance Needs:

• High-value professional indemnity in your name alone.
• Clinic asset protection: Fire, theft, damage to medical equipment.
• Cyber liability insurance: Especially if using digital records or teleconsultation.
• Income protection or disability cover: To compensate for downtime due to illness.

• Group Practice Insurance Needs:

• Joint professional indemnity: Covering the entity and each member doctor.
• Partnership agreement insurance: For business continuity in case a partner exits or passes away.
• Shared asset protection: Clinic premises, joint equipment, digital infrastructure.
• Internal dispute management cover: Including legal mediation or compensation plans.

A one-size-fits-all approach won’t work here. Insurance must be designed specifically for your working model and legal obligations.

⚖️ How Policy Era Helps

At Policy Era, we understand that no two doctors or practices are the same. That’s why we go beyond generic policies to offer customised medico-legal insurance strategies, whether you practise solo or in a group.

Here’s how we support you:

• Custom Risk Assessments

We conduct a full practice audit, evaluating your patient volume, setup type, digital footprint, and legal exposure to recommend the right type and level of insurance coverage.

• Joint Indemnity Policies

For group practices, we offer joint policies that protect the entire entity as well as individual doctors with clearly defined responsibilities and premium splits.

• Personal and Shared Asset Cover

Whether it’s your clinic equipment, EHR system, or leased building, we help you insure physical and digital assets appropriately either jointly or individually, based on your agreement.

• Conflict Resolution Guidance

We provide legal support for internal partner disputes, including assistance with partnership agreements, exit clauses and business continuity planning.

With Policy Era, you’re not just buying a policy you’re building a secure foundation for your medical career, regardless of how you practise.

Conclusion: Independence or Collaboration, Risk Must Be Managed

Both solo and group practices come with their advantages and their own set of legal, financial and reputational risks. The real difference lies not in which is more risky, but in how well you’ve planned to handle those risks.

Whether you're a self-made clinic owner or part of a renowned group of specialists, insurance is your most powerful safeguard.

Policy Era ensures that your cover isn’t just adequate it's optimised, specific, and strategic. With our expert guidance, you can focus on your patients, while we focus on protecting everything you’ve built.

Choose smart. Practice safe. Ensure rights with Policy Era.