Directors and Officers Liability (D&O) insuranceFor medical professional and facilities
What is Directors and Officers Liability (D&O) Insurance?
Directors and Officers (D&O) Liability Insurance is designed to protect the personal assets of directors, officers, and other high-level decision-makers within an organization. In the context of the senior living and healthcare industries, this insurance plays a critical role in shielding these individuals from potential financial losses arising from claims related to their decisions and actions made in their professional capacity.
What does it cover?
D&O insurance typically covers a range of claims arising from the actions or decisions of directors and officers, including:
- Breach of fiduciary duty: This occurs when a director or officer fails to act in the best interests of the organization, leading to financial losses or other damages.
- Mismanagement of funds: Directors and officers may be held liable for losses resulting from their mismanagement or misuse of organizational resources.
- Negligence: Directors and officers can be held responsible for losses resulting from their failure to exercise reasonable care in their decision-making.
- Regulatory violations: Directors and officers may face claims related to non-compliance with industry-specific regulations, such as those governing senior living or healthcare facilities.
- Employment practices claims: Directors and officers can be held liable for decisions related to hiring, firing, promoting, and other employment practices that lead to claims of discrimination, harassment, or wrongful termination.
It is essential to note that D&O insurance policies are typically written on a claims-made basis, meaning they cover claims made during the policy period, regardless of when the alleged wrongful act occurred.
Westwood will source Directors and Officers Liability (D&O) Insurance coverage which is perfect for your organization
Who needs Directors and Officers Liability (D&O) Insurance Insurance?
Organizations serving the senior living and healthcare industries, including nursing homes, assisted living facilities, memory care facilities, hospitals, outpatient clinics, and medical practices, should consider obtaining D&O insurance. These industries face unique regulatory and operational challenges, making it crucial for directors and officers to be protected against potential claims resulting from their decisions and actions.
D&O insurance is particularly important for non-profit organizations, as their board members often serve in a voluntary capacity and may not have the personal resources to cover potential financial losses arising from legal claims.
How Much Does Directors and Officers Liability (D&O) Insurance Cost?
The cost of D&O insurance depends on several factors, including the size and type of organization, the industry, the organization’s financial stability, the specific risks involved, and the amount of coverage needed. Additionally, the insurer’s claims history, the desired policy limits, and the presence of any risk management practices can also influence the premium.
To determine the appropriate coverage amount and the cost of D&O insurance, organizations serving the senior living and healthcare industries should work with an experienced insurance agent. The agent can assess the organization’s unique risks, help select suitable policy limits, and provide quotes from multiple insurance carriers to ensure the best coverage at a competitive price.
Contact Michael Richards below for assistance with Directors and Officers Liability (D&O) Insurance coverage
How do I get Directors and Officers Liability (D&O) Insurance cover?
Click the contact button below and contact Westwood. We’ll pass your information to one of our agents in your area. Our agent will be able to advise you of the best coverage for your business and help you put together an application that will prevent you overpaying premiums.
We look forward to working with you.
Contact Michael Richards now
Michael specializes in insurance for this particular group. You can call him on the number below or fill out the form and he will get your message directly:
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Long term care facilities must protect themselves against potential liability arising from incidents within their facility. Westwood can help you negotiate a package tailored to your long term care facility client.
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traditional insurance products
Westwood have fostered exceptional relationships with underwriters and we go to great lengths to keep abreast of their latest products, changes in requirements and restrictions, including having weekly calls with the carriers, which you can see here, by joining our insurance insider group.
- Professional Liability Insurance (Medical Malpractice Insurance)
- General Liability Insurance
- Business Owner’s Policy (BOP Insurance)
- Excess and umbrella coverage
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- Directors and Officers Liability (D&O) insurance
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Westwood President, Michael Richards has extensive experience in setting up alternative structures for larger clients. Here are some examples:
- Starting a Single Parent Captive (Pure captive)
- Joining a Protected Cell Captive (Segregated Cell)
- Micro Captive Insurance
- Group Captive Insurance
- Risk Retention Group (RRG)
- Special Purpose Vehicle (SPV) Captive
- Stand alone ERP (extended reporting period)
- Loss Portfolio Transfers (LPTs)
If you think your client could be large and stable enough to benefit from starting or participating in a captive or has a special need for another alternative structure, contact Michael Richards now by phone: 855 351 7487.