Do you cover groups?
Yes, provided at least one member of the group is a psychologist and a current
member of APA.
Do I pay more for a group policy?
No. In most cases, a group policy costs less than purchasing individual
policies. You can save at least 4%, depending on group size, when you
purchase a group policy with at least two other owners or employees.
Groups of 20 or more can save 10% or more. You can obtain additional
discounts based on your partner’s eligibility and coverage.
Is it better to purchase a group or an individual policy?
If you are practicing in a group setting, it is better to purchase a group
policy. The group policy covers you for everything that an individual
policy covers. The group policy adds coverage for the group and protects
you if you are sued for the actions of a colleague.
How do you define a group?
A group can be defined simply by public perception (that is, if the public
perceives the entity as a group, it is a group), regardless of composition or
size. Legal and tax definitions do not necessarily define a group.
Does it matter if I list my practice as a DBA (doing business as), a PC (private
corporation), or LLC (limited license corporation) or partnership?
It does not matter. The Trust-sponsored Professional Liability Policy
will cover you and all members of your group no matter what listing you use for
your group structure. However, it is important that if you list yourself
as a group, and have multiple mental health professionals delivering services
under a group name, you must list everyone (excluding support staff such as
clerical employees) under the same group policy. Additionally, if you are
using multiple practice names, you must list them all on your
application.
What if my practice changes?
Call the trust whenever your practice changes. The Trust understands that
groups may use multiple practice names and add and remove owners and employees
over time. To be safe, make sure the Trust is aware of your latest changes,
especially at renewal. You always want to avoid a claim against a
practice name or person that you could have listed on the policy.
Must I pay every time I change the composition of my practice?
That depends on the change made. The Trust encourages you to keep your
policy up-to-date for your protection. The Trust does not modify your
premium mid policy-year if you add or remove employees or independent
contractors. Owners and Additional Insureds are pro-rated from the time
they are added or removed.
Must everyone in the group be on the same policy?
In order to provide complete coverage and avoid gaps in liability, we advise
psychologists practicing in groups to list everyone on the same policy.
Psychologists often worry that by listing their colleagues on the same policy,
they will be liable for their colleague’s actions. In truth, once psychologists
practice together, they are already liable for one another’s actions. By
avoiding a group policy, the psychologists are actually assuming personal
responsibility for the actions of others. Conversely, by purchasing a
group policy, they are providing coverage for this exposure. You also
create continuity in coverage. You can complicate your defense when
colleagues are insured on different policies with different insurance
companies.
Who may be listed on a group policy?
Once the group contains one psychologist who is an APA member, additional
psychologists and “non-psychologists” may be added to the policy, regardless of
APA affiliation, provided a premium is paid for each individual. Other
medical professionals, such as MD's or nurses, may be added at no cost with
proof of their own coverage.
What is a non-psychologist?
A non-psychologist is a non-medical mental health professional who is not a
psychologist. Examples include Social Workers, Counselors, Therapists and
Psychology Nurses. Nurses and Medical Doctors should have a separate
liability policy covering them for any medical services they provide.
How does the Trust cover secretaries and other administrative staff?
The Trust does not charge an additional premium for administrative staff.
It is understood that many psychologists rely on support staff such as
secretaries, filing assistants, answering services and billing services.
Since support personnel are included on the policy, they are protected
accordingly. However, the psychologist is still responsible for their actions
and should ensure proper conduct.
What is an example of a medical professional?
Medical professionals typically involved in psychology practices include nurses
and doctors with a doctoral degree in medicine (including psychiatrists).
How does coverage apply to psychiatrists and other medical doctors (MD’s or
DO’s)? How does coverage apply to psychology nurses?
MD’s may be named on your policy at no additional cost, whether they are an
owner, employee or independent contractor. Simply provide current proof
of coverage for that individual. Nurses may be added as
non-psychologists. If they are providing medical services, they should
also provide proof of their own coverage for those services.
What is the difference between office-sharing and a group?
Office-sharing involves a number of practitioners sharing the same offices
without commingling their independent businesses. For example, one
psychologist may use the office during the day, and another may use it at
night. Office sharing relationships distinguish themselves from groups in
that there is no distinguishable business relationship between the
practitioners.
In a group setting, psychologists involved in the group relationship have a
stake in the business at large. That stake might include the sharing of
profits, advertising, letterhead, support staff, clients, or a group
name. IMPORTANT: A GROUP RELATIONSHIP IS DEFINED BY PUBLIC
PERCEPTION, NOT BY THE PRACTITIONER AND CONTRACT RELATIONSHIPS HE OR SHE
ENTERS! In this regard, many psychologists wrongly define their
practice. In reality, a partnership exists by default and without
official incorporation. Psychologists with individual coverage may not have
sufficient coverage for this exposure. Including all group participants
on a single group policy is the safest and least expensive option.
If I am an independent contractor or an employee of a group, do I need to list
the group on my policy?
Independent contractors and employees have no ownership share in the business
for which they work, and are not responsible for listing the group.
However, by relying on the services of independent contractors and employees,
the owner or employer can be held liable for their actions.
What is the difference between an employee and an independent contractor?
Under common-law rules, anyone who performs services for you is your employee
if you can control what will be done and how it will be done. This is so, even
when you give the employee freedom of action. What differentiates employee from
independent contractor is the owner’s or employer’s right to control the
details of how the services are performed. For more information please
visit http://www.irs.gov/businesses
and consult with an attorney.
What is the difference between listing someone as an employee and an independent
contractor on my policy?
Employees are insured on your policy. If the employee is sued for actions
taken as part of his or her employment, your group policy provides
coverage. Generally speaking, employees do not need their own coverage
for actions taken as part of your practice.
The carrier requires that you list independent contractors on your policy so it
can keep track of the additional exposure. The carrier also requires that
we collect an additional premium for this exposure. Listing an
independent contractor on your policy does not insure the independent
contractor against lawsuits, and the contractor must maintain his or her own
coverage. It is essential to keep up-to-date records of your contractor’s
coverage, because lack of coverage on the contractor’s part will create an
additional exposure for you (examples of possible suits against you include
improper supervision, employment, or other vicarious liability).
If my independent contractor does not have his or her own coverage, can I add
the contractor to my policy? Does it matter if they receive a 1099 tax
form?
You can add anyone who works in your practice to your policy as an
employee. Once they are listed as an employee, that person will be
protected for the services they provide in the practice. Since the Trust
cannot provide tax information, you should consult with your attorney or
accountant to determine what the best tax/payment arrangement for your
practice. Also remember that the Trust policy only responds to liability
from the practice of psychology.
What is an additional insured?
An additional insured is a facility that the insured is indemnifying from his
or her actions, when the actions are rendered on behalf of the facility.
Example: a psychologist is an independent contractor for a small
hospital. The hospital asks the psychologist to list the hospital as an
additional insured on the psychologist’s malpractice policy. The
psychologist’s policy would then protect the hospital in case the psychologist
was negligent in the treatment of a patient referred by the hospital.
Who can be listed as an additional insured?
The carrier does limit the scope of who can be named as an additional
insured. The carrier requires that the listing be as specific as
possible. The carrier does not accept state governments or national
groups, but will accept the name of a school. Note that the insured
cannot have an ownership stake in any entity named as an additional insured.
When should I list an additional insured on my policy?
Only when listing the additional insured is required by contract.
