Preventing directors' and officers' liability exposure

Increasingly concerned about unavailable or unaffordable directors' and officers' liability insurance (D & O), hospital trustees and CEOs are working to maximize coverage benefits, exploring self-insurance, and relying on indemnification provisions in hospital bylaws for protection. However, these approaches are limited because they focus on lessening the impact of a D & O claim after it is filed. This article examines how to prevent liability exposure in the first place.