Short Answer Regarding Professional Liability: In Florida, forming an LLC, PLLC, or professional corporation does not shield a licensed professional from personal liability for their own malpractice or negligence. The entity can protect personal assets from ordinary business debts and from the malpractice of other owners or employees, but every professional remains personally responsible for their own professional misconduct. Malpractice insurance—not the entity—is the primary protection against personal professional liability.
What “Professional Liability” Means
Professional liability is the responsibility a licensed professional bears for negligence, errors, or misconduct committed while providing professional services. It applies to professions such as physicians, attorneys, accountants, architects, engineers, and similar licensed fields. This type of liability is treated differently from ordinary business debts.
What a Florida Entity Does NOT Protect
- Your own malpractice: A professional cannot use an LLC, PLLC, or PA to escape personal liability for their own negligent acts or professional misconduct.
- Personal guarantees: Liability you personally guarantee (such as a business loan or lease) remains your obligation.
- Certain statutory or fiduciary duties: Some obligations imposed by statute or by a fiduciary role cannot be eliminated by entity choice.
What a Florida Entity DOES Protect
- Ordinary business debts: The entity generally shields owners’ personal assets from the company’s contracts, leases, and trade debts.
- Vicarious liability for others: An owner is generally not personally liable solely because a co-owner or employee committed malpractice—though the entity’s assets are still exposed, and supervisory liability can apply.
- Separation of personal and business risk: Maintaining the entity properly keeps a clean line between personal assets and business operations.
The Role of the PLLC and PA in Florida
Florida offers professional entity forms—the professional limited liability company (PLLC) and the professional association/corporation (PA)—for licensed professionals. These entities allow professionals to organize their practice and obtain limited liability for business obligations. They do not, however, override the rule that each professional answers personally for their own malpractice.
Why Malpractice Insurance is Essential
Because no entity eliminates personal liability for your own negligence, malpractice insurance is the cornerstone of a licensed professional’s protection plan. The amount of coverage you carry, whether you have “tail” coverage for claims made after a policy ends, and a clear understanding of what your policy excludes matter far more to your personal risk than which entity you choose.
Building a Complete Protection Plan
A sound plan for a Florida licensed professional typically combines several layers:
- Appropriate malpractice insurance with adequate limits.
- A properly formed and maintained PLLC or PA for business-debt protection.
- Personal asset protection through Florida’s homestead exemption, tenancy-by-the-entireties ownership, and exempt retirement accounts.
- Careful contracting practices to limit personal guarantees.
Frequently Asked Questions
Can a PLLC protect a doctor or lawyer from a malpractice claim in Florida?
No. The individual professional remains personally liable for their own malpractice. The PLLC mainly protects against ordinary business debts and the malpractice of others.
If my partner commits malpractice, am I personally liable in Florida?
Usually not just because you co-own the practice. But the practice’s own assets are still at risk, and you can be personally liable if you supervised or took part in the negligent work.
What is the most important protection for a licensed professional?
Malpractice insurance. It is the primary safeguard because entity choice cannot eliminate personal liability for your own professional negligence.
Protect What You’ve Built.
Licensed professionals face liability risks that the right combination of insurance, entity structure, and personal asset protection can help manage. The Hollywood attorneys at Kramer Green can help you build a complete protection plan. Schedule a confidential consultation or call us at 954-966-2112 today.