Protects individual directors and officers, in addition to the company, if they are sued by employees, patients, the government, and other parties. The legal fees, settlements, and other costs associated with the legal action are typically covered by the Directors & Officers policy. However, not all Directors & Officers policies are designed to protect the intricate legal responsibilities of a Community Health Center.
A well designed Directors & Officers policy will provide coverage for the Community Health Center and it’s directors if they face administrative action from a government body such as Medicare, Medicaid, the Department of Labor, or the Office of the Inspector General.
Your board of directors and administrators can be sued by a physician whose employment opportunities are now limited due to an unfavorable review. This common healthcare exposure is typically not covered on a basic Non-Profit Directors & Officers Policy.