As the owner of a healthcare facility, you realize the need to protect directors and officers of your company from exposures related to their duties. As such, insurance for nursing homes can include a rider for directors and officers (D&O) for this type of exposure.
The main reason that healthcare organizations need to have more specifically-tailored D&O insurance than, say, non-healthcare entities, is because they’re highly regulated and face a multitude of exposures unique to their field of work. Additionally, they must also manage a potentially serious exposure that faces many business entities, but nonetheless may be more prevalent in the healthcare field than in many other segments of the economy: antitrust violations.
Antitrust violations can pose a major threat
Healthcare organizations, assisted living homes, and nursing homes to some extent, must perform a balancing act that most other companies in the US do not see as an issue. You want to be successful and be profitable, but you can’t allow yourself to become too dominant in your geographic region or you may be accused of creating a monopoly and violating antitrust laws.
Purchasing a healthcare-specific D&O policy available on the market today is your best option. These policies generally provide coverage for antitrust claims against all insureds, including the entity, which is especially important. In addition to antitrust violation exposures you can be accused of any of the following:
- HIPAA violations
- Excess benefit transaction tax violations: Liability related to the tax status, services, and value provided to the organization which, if disputed, you may face personal liability
- Internal revenue code violations: For tax status filing and reporting requirements imposed on the business
- Medicare/Medicaid fraud and billing liability
- Emergency Medical Treatment and Active Labor Act (EMTALA) violations
There are many exposures of directors and officers in the medical profession. Insurance for nursing homes for D&O liability concerns is available. Speak to an agent today.