You need to indemnify yourself both professionally and personally if you have responsibility as a board member or officer of a company. Legal costs are expensive for management personnel who become board members or officers of an organization. Even a benevolent board position with your favorite charity could expose you to unforeseen liabilities. Many companies have formal articles of incorporation that indemnify their officers or board members against any legal liability from litigation against the company, but those article of incorporation are not bullet-proof. Just like any other business owner or executive, physician practice owners and managers have significant personal liability for their acts, omissions, and compliance as owners, directors, officers, etc. of a corporation. This is separate and distinct from their malpractice coverage and is regardless of the title they hold or don’t hold. If it’s your practice and you are the actual authority, the liability is yours. Again we suggest mid-six to seven figures in this coverage area as well. You should also have this coverage from every board of a corporation, foundation, school, religious institution etc. you have a position with. The content in this press release was taken from Ike Devji’s article Common Flaws of Asset Protection Planning   Read more…

Data Breach/Cyber Liability The exposure of either HIPAA protected or PII (patient identifying information) is both a significant legal liability and PR nightmare. As an example, all medical practices should be adequately insured against all forms of this type of exposure including; hacking, loss or theft of devices with sensitive information and intentional theft by employees. Many doctors we speak with have somewhere between $0 and $50K in coverage as part of another policy, which is shockingly inadequate. Again, shoot for seven figures in coverage. You need to install protocols and back up systems to protect client information from outside invasion as well as insider theft. Employee theft of client information is on the rise and is a present danger for corporations that collect medical and financial data from their clients and customers. RAC Audit Insurance The Recovery Audit Contractor program also known as a “RAC Audit” seeks to identify and eliminate fraud and waste in Medicare payments. While some audits are routine and require only minor corrections, others are much more serious, requiring civil and even criminal legal defense, crippling levels of document production (they can request new files every 45 days), and forensic review. A controversy during this process can   Read more…