The network confirmed yesterday that Lohan will play Taylor in upcoming movie Liz and Dick.
Producer Larry Thompson has now told E! News that the team behind the production has "more than a Plan B" in case there are problems with Lohan.
"Lindsay Lohan may be the most insured actress that ever walked on a soundstage for this movie," he said. "We've tried to anticipate a lot of things - we hope none of them happen.
"And in wonderful, meaningful, serious conversations with Lindsay, I think she's quite aware that this is an opportunity not only for her career but her life - it gives something meaningful and a purpose right now to hold on to and do and I have all the confidence in the world in her. I'm convinced that she's going to deliver."
Thompson explained that the team "wanted Lindsay from day one" and described her as "perfect" for the role, praising her for being "very gifted" and pointing out the parallels between Lohan and Taylor.
"We think she understands the role," he said. "We think she lives it. I know when she talks to me about it, she goes, 'Oh my gosh, I understand exactly what was going on. I know what she was thinking'. I think that's an added value that she as an actress brings to our project that we might not otherwise get."
Thompson, who pointed out that he is not making "the Lindsay Lohan story", revealed that the star was not asked to audition or screentest but admitted that the team is "minimizing" the risks involved by shooting in Los Angeles instead of in Canada.
He acknowledged that things could go wrong, saying: "I've had the conversation with my wife, who worries about it, and I worry about it. But you know, as a producer we take risks and if you want to make magic, that's the world Lindsay Lohan lives in, that's the world Elizabeth Taylor lives in.
"I think Lindsay brings to Elizabeth Taylor and to our project that sparkle of magic, that sparkle of today. She is today what Elizabeth Taylor was when we [are setting] our movie."
Thompson added that he began to see Lohan in the role when she showed him her "vulnerability", saying: "She promised me she would be ever grateful and that she'd give me 100% and there was something in that moment of vulnerability and truth that to me, she was my Liz. Now, if I learn to regret it, sitting here today, I think it is still for the movie a great risk to run."
> Rosie O'Donnell: 'Lindsay Lohan not capable to play Liz Taylor'
Watch Larry Thompson speaking about Lindsay Lohan below: