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 with permission.