The Trust | Professional Liability

1-800-477-1200

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The Trust
111 Rockville Pike
Suite 900
Rockville, MD 20850

1-800-477-1200

Professional Liability Program - Detailed Description

The Trust has developed Professional Liability coverage to protect you and your practice from the financial impact of a malpractice lawsuit.

The program is continually monitored by the Trustees to ensure that the coverage is broad and meets the ever-changing practice environment. When you’re protected by The Trust, you have much more than an insurance policy. You are not just another number at an insurance company. You have a comprehensive professional liability program, backed by a team of practicing psychologists --- your representatives at The Trust.

Highlights of The Trust Sponsored Professional Liability Program Coverage

Individual Coverage - Through The Trust, you can choose either claims-made or occurrence coverage. You also have your choice of annual liability limits - as much as $2,000,000 for each incident with up to a $4,000,000 annual aggregate*.

There is no limit on the number of claims you can report each year as long as the total dollar amount paid for damages isn’t more than your selected annual aggregate liability limit.

Coverage for Group Practices - If you practice in a group, each member of your group will have his/her own personal aggregate liability limit. Your protection will not be diminished as a result of claims paid against an associate. This versatile coverage can be designed to meet the needs of a variety of practice situations.

Advocate 800 Risk Management Service - You may take advantage of The Trust’s Advocate 800 Risk Management Service (1-800-477-1200) to consult - at no cost to you - with a licensed psychologist/attorney. You may discuss methods to reduce your risk of liability claims or how to handle a potentially litigious situation.

Pays Legal Fees & Court Costs - From the first day a claim is filed to the day it is resolved, The Trust sponsored Professional Liability Program pays your legal fees and court costs. You’ll also get up to $250 a day ($5,000 each incident) to replace earnings lost if you are away from your practice to appear in court. The Trust Program even pays reasonable expenses such as transportation and hotel stays if you are required to appear in court. (Subject to the terms and conditions of the policy.)

Pays Defense Costs for Appearances before Regulatory Boards - The Trust sponsored Professional Liability Program pays up to $5,000 for legal defense costs when you receive notice during your policy period of a proceeding before a state licensing board. Plus, you also have the opportunity to increase the limits to $25,000 or $50,000 of defense coverage for a small additional premium.

Professional Boards - You’re covered for professional services rendered as a psychologist and member of a formal accreditation, ethics, peer review, licensing, standards review or similar professional board or committee of a hospital, health facility, educational institution, professional organization, Health Maintenance Organization or Health Plan.

Sexual Misconduct - The Trust sponsored Professional Liability Program pays your defense costs and other claim expenses if you are accused of sexual misconduct.

Advertising Injury - You are protected against accusations of libel, slander, defamation, violation of right of privacy, piracy, false advertising, or unfair competition, or copyright infringement which results from your advertising.

Personal Injury - The Trust sponsored Professional Liability Program covers you for personal injury claims arising from your practice. You are protected against allegations of false arrest, detention, confinement, imprisonment or malicious prosecution; the publication or utterance of libel, slander, or other defamatory or disparaging materials; publication or utterance in violation of an individual’s right of privacy; wrongful entry or eviction; or other invasion of the right of private occupancy.

Premises Liability - Your Professional Liability insurance through The Trust covers you for litigious situations which occur on your practice premises - even if your office happens to be in your home.

Additional Claims-Made Coverage

Free Unlimited Extended Reporting Period Coverage - If you permanently retire from the practice of psychology, become disabled or die, after you have been covered through The Trust sponsored Professional Liability Claims-Made Program you qualify for a free, unlimited Extended Reporting Period. Often referred to as "tail coverage." The Extended Reporting Period protects you from claims which arise from incidents that happened while your Trust sponsored Professional Liability claims-made policy was in force.

Prior Acts Coverage - You may also obtain prior acts coverage from The Trust sponsored Professional Liability Program. By purchasing prior acts coverage you will be protected against claims arising from unknown incidents which happened while your other coverage was in force but weren't reported until your Trust sponsored Professional Liability claims-made coverage was in effect.

Attractive Rates

The Trust monitors rates to make certain your premiums remain fair and competitive. In addition, independent actuaries audit The Trust rates to verify that your rates are reasonable and adequate to ensure the long term financial stability of the program.

With The Trust sponsored Professional Liability Program, you pay for only the principals, employees or independent contractors you have at the time you renew your coverage each year. You pay nothing for clerical workers or any staff you may add during your coverage year. (Any reorganizations of your practice during the year, like a change in ownership, do require reporting and perhaps a revision to your coverage.)

Quarterly Payment Option - You can reduce the impact of your annual premium with The Trust sponsored Program’s convenient, interest free, quarterly payments.

Premium Discounts - The Trust sponsored Professional Liability Program also offers the following premium discounts:

Group discounts for practices of 3 or more persons
Continuing education discount - You’ll receive a 15% premium discount for two years for attending The Trust Risk Management Workshop within the past 15 months, a 10% premium discount for reading the Trust’s book Assessing and Managing Risk in Psychological Practice: An Individualized Approach and passing an online exam, or a 5% premium discount for obtaining four hours of continuing education credits from an APA-approved CE sponsor (any of these within the past 15 months). Groups qualify for the applicable credit when 50% of the owners and employees have submitted proof of completion.
If you deliver psychological services only on a part-time basis (20 hours or less a week), you get a 35% rate discount.

Trust Involvement

The Trust sponsored Professional Liability Program is continually reviewed by The Trust Board of Trustees. The Trustees include psychologists experienced in both practice and insurance needs as well as independent insurance experts.

Responding to your professional requirements is The Trust’s top priority. The Trustees continuously review the Professional Liability Program to ensure that you have broad-based coverage at competitive rates.

The Trust also provides a Case Review process to seek a fair resolution if you are ever denied coverage or payment of a claim.

Your Insurance Company and The Program Administrator

Your Trust Professional Liability Program is underwritten by ACE American Insurance Company (ACE) or affiliated companies of ACE USA. ACE has earned the "A+" rating awarded by A.M. Best and Company.

Your program administrator is Trust Risk Management Services Inc. (TRMS), a wholly-owned subsidiary of the Trust.

Definitions

Occurrence Policy - An occurrence policy covers you for any incidents that happen while you are insured by the policy - regardless of when the claim may be filed.

Claims-Made Policy - A claims-made policy covers you for incidents that happen after coverage becomes effective. The claim, however, must be reported while your policy is in force. Claims filed after your coverage ends may be covered by purchasing an Extended Reporting Period.

Retroactive Date - The retroactive date is the day you began continuous coverage under a claims-made policy. In order to be covered under your claims-made policy, incidents must happen after this date and prior to the termination of the policy.

Independent Contractor - Any person contracted by you who receives a 1099 Form for tax purposes is an independent contractor. Your coverage in The Trust sponsored Program protects you against claims caused by the negligence of a contractor or subcontractor while working on your behalf. This coverage, however, does not provide individual protection for the independent contractor.

Employee - Anyone you hire and give a W2 Form for tax purposes is considered an employee. Employees are covered only for acts performed on your behalf as an employee of your practice organization.

The description provided here is only a brief description of coverage. For a complete description of all provisions that apply to this coverage, please refer to the Insurance Contract.

*Other limits of liability are available. Please call The Trust for more information (1-800-477-1200).

Home | Resources | About the Trust | Privacy Notice | Terms and Conditions

The APA Insurance Trust ("the Trust") was formed in 1962 by the American Psychological Association ("APA") as a separate and distinct legal entity from the APA. The Trust is legally recognized as a business trust that provides financial security programs for the members of the APA and other affiliated individuals as well as risk management and other consultative services related to the Trust Insurance Programs.