Professional Liability Insurance

Professional Liability for Psychologists 

Professional Liability Insurance is brought to you by The American Insurance Trust (The Trust), the leading provider of professional liability, financial security, and risk management programs for psychologists and psychology students nationwide.

  • Association membership not required
  • Broad coverage at affordable rates
  • Free risk management consultations
  • Excellent customer service
  • A variety of premium discounts
  • For psychologists by psychologists

Highlights of The Trust Sponsored Professional Liability Insurance Program

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. Other limits of liability are also available. 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.

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 incident/occurrence. 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.

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 Insurance 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 Insurance 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 Insurance 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 Insurance 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.

Coverage for Psychology Students

The Trust offers Liability Insurance just for graduate students in psychology, designed to cover activities such as practicum and internships. With your Trust Occurrence-type coverage, you will be protected in lawsuits resulting from participation in graduate curriculum, no matter when the suits are filed, subject to the terms and conditions of the policy.

Coverage for Research or Academic Psychologists

This program is designed specifically to protect psychologists in research and academic settings. This Claims-Made coverage will protect you from lawsuits while you are teaching, doing academic advising, research or committee work, or serving on professional review boards (including licensing boards) as long as claims are filed while your policy is still in force. Coverage is also available for supervision or part-time clinical work that is part of your academic responsibilities.

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 Insurance 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 Insurance 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 Insurance 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 organization approved by APA to offer CE credit (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 Insurance 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 Sponsored Professional Liability Insurance Program is Underwritten by ACE American Insurance Company, Philadelphia, PA. ACE USA is the U.S.-based retail operating division of the ACE Group headed by ACE Limited (NYSE:ACE) and rated A+ (Superior) by A.M. Best and AA- (Very Strong) by Standard & Poor's (ratings as of June 13, 2012). Administered by Trust Risk Management Services, Inc. Policy issuance is subject to underwriting.

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.

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