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
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
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
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
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.
The Trust Sponsored Professional Liability Insurance Program pays your defense
costs and other claim expenses if you are accused of sexual misconduct.
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.
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.
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
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.
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.
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.
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
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.
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.
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.
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
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.
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.