Pennsylvania | Business Law
Legal Question
S Corporation liability
My partner and I currently own (50/50) and run a medical practice set up as an S-Corp 17 yrs ago. We have individual medical malpractice insurance (claims-made) and a corporate policy that covers our physician assistant(PA) and the ''corporation''. We are in the process of selling/dissolving the corporation. The purchasing party will cover the expense of our individual ''tails'' and the ''tail'' portion of the corporate policy that covers the medical actions of the PA. Can the ''corporation'' be held liable in any malpractice suits (e.g., suits made against the physicians individually or the PA for services rendered while still incorporated) even though it has been dissolved? Would it be prudent to pay the ''tail'' to cover the corporation beyond the medical actions of the PA? Is there any risk/liabilities upon the owners of the S-Corp once dissolved (i.e., PA is sued for an individual medical act)? Thanks in advance.
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