The days of vocabulary quizzes may be long gone, but there are a few terms on your professional liability insurance policy that you need to know in order to understand your coverage. Being familiar with these terms will ensure that you are properly insured, so when a claim is made against you, there is no question that you are covered.

5 Terms You Need to Know:

  1. Occurrence Coverage: This means lifetime coverage for the policy period. Even if a claim isn’t filed against you until 10 years after the incident, if the incident occurred during the policy period, you are covered. A claims-made policy, alternately, will only cover claims made while the policy is in effect (or if an optional extended reporting period is purchased).
  2. Insured: It is important to note what is being defined as insured. Your professional liability insurance policy can provide protection for an individual or a corporation. If your professional practice is incorporated, you should take out a corporate policy so the business entity is protected under the definition of the named insured within the policy.
  3. Limits of Liability- Per Incident: This refers to the maximum amount that can be paid in damages for a single claim.
  4. Limits of Liability- Aggregate: The aggregate is the total amount the policy will pay out in a given policy period.
  5. Supplemental vs. General Liability: With CPH & Associates, all professional liability insurance policies include supplemental liability coverage. This covers any bodily injury to patients that occurs while rendering your services. General liability extends this coverage to the entire premises, including hallways and stairwells, and in addition to covering patients, all people in the facility, such as family members, would be covered as well. Some entities, such as landlords, Managed Care or county or state departments, require the purchasing of Commercial General Liability. Adding CPH TOP to your policy would meet this requirement and guarantee the general coverage you need.

The only way to know that you have the coverage you need is to understand exactly what you’re purchasing. Knowing these terms makes understanding your coverage simple and straightforward. If you have any additional questions regarding your policy, CPH & Associates is always happy to help.


About the Author

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CPH Insurance

Over the last decade, more than 500,000 people chose CPH Insurance for liability insurance. Because our business is specialized, we are able to focus on your liability needs in a way that bigger companies are not. Our team of associates represent over 50 years of collective experience in this field, and we are able to serve a large client base while maintaining a small-office approach.

The California Association of Marriage and Family Therapists, or CAMFT, spent the last 50 years providing excellence and high standards in representing licensed marriage and family therapists. CPH Insurance was proud to attend the 50th annual conference last week in India Wells, California, as an exhibitor!

We were lucky to participate in several amazing discussions by top members of the medical community. From PhD Joan Borysenko’s “Mind-Body” lecture, to the top physicians from the UCSD panel on Collaborative Care discussing Family Therapy, we were excited to learn the latest in health, addiction, pathology, relationships and technological change from the impressive keynotes at CAMFT.

In addition to engaging in the cutting edge of medical thought at CAMFT, we manned our own booth for allied and mental health professionals!

CPH Insurance

Protect yourself with CPH Insurance.

Get a quote & apply online.

About the Author

Avatar photo

CPH Insurance

Over the last decade, more than 500,000 people chose CPH Insurance for liability insurance. Because our business is specialized, we are able to focus on your liability needs in a way that bigger companies are not. Our team of associates represent over 50 years of collective experience in this field, and we are able to serve a large client base while maintaining a small-office approach.

It’s no surprise that Mental Health and Allied Health professionals are among those targeted most frequently in misconduct and malpractice lawsuits. The patients that utilize mental and allied health services open up to their providers on a very personal and vulnerable level, one that exposes the professional to the every-present risk of a professional liability nightmare. As a professional in one of these industries, one must ask themselves “Am I covered in the event of a patient complaint?”

Common Complaints

The most common types of liability lawsuits filed against metal and allied health professionals include:

  • Breach of Provider/Patient Confidentiality
  • Liability for acts a patients’ acts when based on providers’ recommendations
  • Dual Relationships
  • Real or fictitious regulatory board claims by disgruntled former patients
  • Sexual harassment/Conflict of interest

Protecting Your Practice

Little can be done once a complaint is filed, especially if a provider doesn’t already carry liability insurance for their practice. If proper insurance coverage is in place, the costs of legal defense and fixing the situation will be significantly reduced or eliminated, and your business will likely survive the fallout of the situation. Without insurance, the cost of legal and medical bills, as well as loss of business due to negative publicity, could end up costing thousands, and even close a practice for good.

Any provider can learn updates to your coverage needs, including the latest industry standards, by choosing to work with a dedicated insurance agent who provides more than just policies. If they select a provider through CPH & Associates, one of the leading names in Mental/Allied Health Liability Insurance, access is granted to resources including a monthly “Avoiding Liability” newsletter for both mental health professionals and nursing professionals, and a helpline to call for insight into potential liability claims.

Getting Covered Is Easy

CPH & Associates offers the easiest access on the web to all the insurance resources a mental or allied health professional needs. With experts available to assist with every step of the process, a provider can be matched with the liability insurance they need to feel protected, no matter what situation arises. In this field, every day is a surprise and a challenge, but that doesn’t mean you can’t prepare for whatever comes your way. Get an instant quote here, because every appointment on your calendar is a potential liability lawsuit. Are you protected?

CPH Insurance

Protect yourself with CPH Insurance.

Get a quote & apply online.

About the Author

Avatar photo

CPH Insurance

Over the last decade, more than 500,000 people chose CPH Insurance for liability insurance. Because our business is specialized, we are able to focus on your liability needs in a way that bigger companies are not. Our team of associates represent over 50 years of collective experience in this field, and we are able to serve a large client base while maintaining a small-office approach.