Executive Risk Management | Healthcare

D&O liability insurance protects healthcare organizations and their leadership from claims alleging wrongful acts, such as breach of duty, regulatory violations, peer review disputes, provider selection issues, or antitrust claims. In an era of increasing regulatory complexity, a comprehensive management liability program is essential.

Typically, D&O policies cover defense and investigation costs, settlements, and judgments, for both the organization and its leadership team. 

Whether not-for-profit, private or public, healthcare organizations face significant risks that make a well-structured D&O insurance program essential. Lawsuits can arise from employees, patients, regulators, suppliers, or creditors, exposing both the organization and its leadership to financial and legal challenges. Without proper coverage, the organization and its leaders could be compelled to personally absorb the costs of defense, settlement, or judgments. 

D&O insurance provides an important safeguard, ensuring that both the entity and its leadership remain protected during times of uncertainty.

While both cover fundamental risk, they serve distinct purposes: 

Professional liability (malpractice) insurance addresses performance issues or negligence related to patient care and professional services.  In contrast, D&O insurance protects against claims related to their management decisions and duties.

A comprehensive insurance program for healthcare organizations includes both D&O and professional liability insurance. 

Healthcare organizations and their leaders face a range of emerging risks including:

• Antitrust litigation stemming from industry consolidation and reduced competition
• Regulatory actions and allegations brought by agencies such as the Office of Inspector General (OIG), Internal Revenue Service (IRS), Federal Trade Commission (FTC), and the Department of Health and Human Services (at both state and federal levels)
• Billing fraud and abuse claims, including allegations under the False Claims Act
• Breaches of fiduciary duty, particularly in cases of financial loss or insolvency
• Employment-related claims, such as wrongful termination, failure to accommodate, peer review/credentialing, workplace discrimination or harassment and hostile work environment (an employment practices liability (EPL) policy is recommended for full coverage)