Running a private practice or therapy business is rewarding, but it also carries responsibilities that extend beyond the day-to-day. One area that is often overlooked is planning for the future: what happens to your business, your patient records, and your professional responsibilities if you retire, sell your practice, or in the event of death in service?
It’s not the easiest subject to think about, but making clear arrangements now can save a lot of stress for family, colleagues, and clients later.
Key Scenarios to Plan For
Death in Service
If something unexpected happens, who takes responsibility for your patient records and client documentation?
For many sole traders or independent therapists working from home, archived records are often stored on-site. But without clear instructions, your family may not know where these files are, or what to do with them. Crucially, your insurance may still need to defend a claim years after your passing, so keeping track of records is essential.
What to put in place:
- Ensure you know where all records are stored and keep them organised.
- Appoint someone (via your Will or a Power of Attorney) who can access and manage your records if something happens to you.
- Speak with your insurer about future liabilities and how records may need to be accessed.
Retirement (Planned or Early Due to Ill Health)
If you retire early, whether by choice or because of ill health, have you considered run-off insurance cover? This type of policy protects you against late claims that may arise after you’ve stopped practising.
Questions to ask yourself:
- Do you have the right insurance cover in place for retirement?
- Have you discussed continuous cover options with your professional body?
Professional membership organisations such as:
- Royal College of Occupational Therapists
- Chartered Society of Physiotherapists
- Royal College of Speech and Language Therapists
… all offer access to insurance or support to guide you through these scenarios.
Selling or Transferring Your Practice
If you decide to sell your practice, it’s not just about handing over the client base, it’s also about what happens to the clinical records.
According to guidance from Balens Insurance, you can transfer original client records to a new owner as long as they are subject to the same or equivalent professional rules. However, there are conditions:
- Patients must be informed in writing, in advance of the transfer.
- Patients must be given the opportunity to object. If they do object, their records cannot be transferred and must remain with you.
Working closely with your professional body and insurer at this stage will help ensure compliance and protect both your clients and your business reputation.
Practical Steps to Take
- Update your Will – Include clear instructions about your business, patient records, and any insurance policies.
- Consider a Power of Attorney – Appoint someone who can manage your business affairs if you become ill, disabled, or otherwise unable to do so.
- Check with your insurer – Providers such as Towergate Insurance and Simply Business specialise in cover for independent therapists. Ensure your policies extend to retirement, practice transfer, or death in service.
- Seek legal advice – Services such as Co-Op Legal Services offer guidance on probate and estate planning for business owners.
Final Thoughts
It may feel uncomfortable to plan for “what if” scenarios, but taking action now is a crucial part of protecting your clients, your family, and your professional legacy.
Whether you’re considering retirement, preparing to sell your practice, or planning ahead for unforeseen circumstances, putting the right structures in place will give you peace of mind—and ensure your business is in safe hands.