What does the Trust Professional Liability policy cover?
The Trust-sponsored Professional Liability Policy covers psychologists in the
legitimate practice of psychology for bodily injury, personal injury,
advertising injury, and limited property damage. The policy also includes
supplemental protection for employment practices liability, defense
reimbursement for licensing board complaints, and no-fault medical.
Does the Trust-sponsored Professional Liability Policy cover anything else?
Yes: there are a number of additional coverages. Here are the three most
important:
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Licensing Board Defense (LBD): The policy will reimburse you for the cost of your defense if you are the subject of an investigation by a state licensing board. Some policies require that a client file a complaint against you before they take affect. The Trust policy reimburses for defense of any investigation by a state licensing board. The policy provides you with $5,000 protection automatically, and you can increase your protection to $25,000 for just $35 or $50,000 for just $45.
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Employment Protection Liability Insurance (EPLI): The policy will reimburse you
up to $5,000 for the cost of your defense if an employee sues you for any employment related
issue (such as wrongful termination, not hiring or promoting, harassment,
discrimination, libel, slander or any practice which violates a state or
federal employment discrimination statute).
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No Fault Medical Payment:The policy will pay up to $1,500 for each person who is injured in an accident as a result of
your practice regardless of fault up to $75,000 annual maximum. This coverage is commonly referred to as goodwill coverage. It is there to pay
for minor medical claims from clients. By paying for a minor accident without
regard to fault and encouraging people to seek immediate medical help, we all
hope to avoid a more costly claim. This does not diminish your coverage for
slip-and-fall. If an injured party is unwilling to take this payment or demands
more money, you would still have the full limits of the policy.
How do you define psychology?
The policy covers the named insured for the “practice of psychology.” The policy
does not contain a definition of the “practice of psychology.” Insurance
policies can only limit the meaning of words or phrases defined within the
policy. Terms not defined in an insurance policy are defined by their standard
usage. Each state has a licensing law that defines the practice of psychology
for that jurisdiction. If your state’s ‘scope of practice’ laws
allow you to perform a service as a psychologist or they do not restrict a
particular area of practice, you are covered. Most states license psychologists and define
clinical practice. Sub-groups, such as the 55 divisions of APA, define some
specializations in psychology. Some forms of psychology do not require
licensure. These include Industrial and Organizational Psychology, Consumer
Psychology, and Consulting Psychology.
Are there specific modes or forms of psychology that the
Trust-sponsored policy does not cover?
No. The Trust-sponsored policy covers Consultants (including those providing
coaching services), Industrial & Organizational Psychologists, Media
Psychologists, Forensic Practice (including custody evaluators), Parent
Coordinating, Mediation, Hypnosis Therapy, Psychoanalysts, and even those
researching new forms of treatment. The policy covers psychologists serving on
ethics, peer review, licensing, and academic boards. The Trust does not limit
psychologists from providing legitimate forms of psychological practice.
What is a Psychologist?
A psychologist has attained a doctoral degree in the field of psychology or is
licensed as a psychologist. The three most common degrees are a philosophy
doctorate (Ph.D.), a psychology doctorate (Psy.D.), and an education doctorate
(Ed.D.). Clinical psychologists must also obtain a license from the
state in which they practice. There are a few states that license psychologists
at the master’s level.
Do you have to be licensed in order to apply for coverage?
Not necessarily. Some forms of psychology practice do not require licensure (for example,
industrial & organizational, consumer, coaching, and other consultative
practices). The Professional Liability Policy also covers postdoctoral
candidates working under supervision toward licensure. All states require a
license to provide certain clinical services, and the policy requires that you
comply with all applicable laws and guidelines. However, many postdoctoral
candidates must practice under supervision for one to two years before being
eligible for licensure. The Trust offers unlicensed post-docs working toward
licensure a 35% discount for their first year of coverage.
Who may apply for coverage?
Psychologists (including post-docs and doctoral students working to become
psychologists) who are members of the American Psychological Association (APA).
Additionally, owners and employees may be added to your policy to form a group
policy. Group members can be psychologists or other Allied Mental Health
Professionals such as Marriage and Family Therapists, Counselors, and Social
Workers.
Where am I covered?
The policy puts no limits on where you can practice (though state or local
statutes may). You are covered for services you provide anywhere in the world.
However, the policy will only defend you if you are sued in the United States
or Canada.
Is there any limit on where policies can be issued?
The Trust can only issue a policy to you if you have a valid address in the 50
United States, the District of Columbia , the US Virgin Islands, or an APO/FPO
(AA, AE, and AP).
Do you have to be a member of the American Psychological Association (APA) to apply for this insurance?
Yes. APA established the APA Insurance Trust to provide its members with
the best protection possible. The insurance offered through the APA Insurance
Trust Program is a member benefit.
Do you have to be an APA member to renew your insurance?
The Trust recommends that all psychologists maintain membership in APA. The APA
established the Trust specifically to insure and protect psychologists. You
must be an APA member when you apply for Trust-sponsored Insurance Programs.
However, TRMS is precluded by insurance regulations from checking your
membership status at renewal. If your APA membership lapses, you will be
allowed to maintain your liability policy, and your membership status will not
affect coverage or claims.
Why are there two limits of coverage on my policy?
The policy has a per-incident limit and an aggregate limit. The per-incident
limit is the maximum the policy will pay for one claim. The aggregate limit is
the maximum the policy will pay if there are multiple suits that apply to the
same policy period. Each claim is still subject to the per-incident limit.
Do I pay for my defense?
No. If you have a covered claim, the carrier defends you. There are no limits
placed on how the carrier defends you. The defense cost does not diminish the
limits available for damages. You are still covered up to your policy limits
for settlements or damages.
What is an independent contractor?
An independent contractor is a person or entity who provides services for the
policyholder, but does not directly work for the policyholder. The insured
should refer to the Internal Revenue Service, which uses 20 criteria to make
such a distinction.
Why do I have to pay to list independent contractors on my
policy?
Experience shows that practitioners who use independent contractors are more
likely to be involved in claims. The carrier requires that you notify them when
you have contractors working for your practice.
Why must my independent contractors carry their own coverage?
When an independent contractor does not carry his or her own coverage,
plaintiffs often look for “deep pockets” - any source that can pay for
damages. The determination often has more to do with the ability to pay than
the guilt of the party. When an independent contractor does not have coverage,
it is far more likely that the principal will be sued for the independent
contractor’s actions. The Trust helps by allowing insureds to purchase coverage
under their policy for uninsured independent contractors. If there is a claim,
the damages are assigned to the correct party and not you, the principal.
