As the number of physician-owned corporations increases, more are being sued. Corporations need to be aware of their risks, which include:

• Suits Against Directors & Officers
• Errors & Omissions Claims
• Medical Malpractice Litigation
• Anti-Trust Issues
• Sexual Harassment/Employment Liabilities

Directors & Officers Insurance
This type of coverage protects managers of the corporation against personal liability to investors, employees, vendors, participating physicians and other provider organizations. The key D & O exposure areas include anti-competitive acts, shareholder liability, and mismanagement.

Errors & Omissions Liability
Errors and omissions coverage addresses the largest area of exposure claims arising from the day to day management of health care provided to members. Designed to protect corporations where allegations of management negligence are made, E & O insurance covers the exposure areas that include vicarious liability, credentialling and peer review, provider selection and utilization review.

Anti-Trust
If an organization is perceived as trying to thwart competition, it may be charged with violating various anti-trust laws. For example, a merger or acquisition between two companies resulting in an organization that would dominate a particular market could result in allegations of unlawful restraint of trade. Other violations include monopolies, price fixing and price discrimination, group boycotts, and exclusive dealing.

Employment Practices Liability Insurance
Many senior executives fail to recognize that their employees constitute a risk. Employment Practices Liability Insurance (EPLI) protects against allegations of employment discrimination, such as acts based on gender, race, minority states, age or handicap, as well as wrongful termination.

EPLI coverage provides payments for defense costs, litigation and settlements. This protection takes many forms and not all are alike. Some policies include coverage for the corporate entity, while others only provide coverage for the officers and directors of the corporation. Like most insurance contracts, there are problems and traps to avoid. PIAM will help you select the right coverage for your practice's needs.

Corporate Medical Malpractice
This malpractice insurance covers liability suits against the corporation that may arise when the contractual obligations and responsibilities of participating physicians and managed care companies are absent or left ambiguous. It also covers vicarious liability that can occur when employees of the corporation are deemed negligent in patient care decisions including denial of care, delay of care, failure to diagnose or failure to perform.

General Liability Insurance
This coverage protects the entity against allegations arising from bodily injury or property damage on the business premises.