Directors and Officers Insurance & Your Larger Practice
Today we are going to branch out a bit and not talk about med mal insurance. Instead, we are going to focus on Directors and Officers Insurance and a trend that makes some physicians anxious and one that we are sure will only become more and more important over time. As you have already probably seen in your part of the country, or at the very least have read about in the professional literature, more and more physician practices are being bought-out or consolidated. This practice is greatly altering the landscape of care. Physicians across the country tell us that one of their largest concerns is being able to compete against the large, hospital-based and corporate medical practices (this is a topic for another day). As the nature of practices change, we want you to be aware of other risks that can arise, outside of the usual realm of med mal, when a practice is merged or bought-out. In these situations, the physician, who was formerly the head of his or her practice, is often asked to stay on as a Medical Director or Officer of the larger organization. That is why the focus of today’s post is on Directors and Officers Insurance.
Similar to errors and omissions insurance, Directors and Officers Insurance is designed to provide an additional layer of protection, or risk management, for physicians who wear many hats and have been asked to be a director or officer of a board or organization. This kind of coverage can provide peace of mind and is a great safety net. The coverage is very simple and inexpensive. The policy basically shields the board member from liability as it relates to this position. Just recently, our office put in place a policy for 12 directors and officers and the cost was less than $4,000, total, for $1 million limits for all 12 individuals.
Contact us today is you are in need of Directors and Officers Insurance. Or, if you are unsure if you need this type of coverage, or you would like to get more information about this important kind of insurance, you may contact us for a free consultation.