I am starting my own practice and company, and I may hire contractors and/or employees. What do I do?

Remember that most insurance policies are sold through commission-driven insurance agents. They receive up to 30% of your premium as their sales commission each year, so you are paying too much. Also, many insurance policies require that you pay a deductible. No deductibles are required under any NASW RRG insurance policies.

Buy an NASW RRG Professional Liability policy directly from the NASW RRG. There is no sales agent commission. Ask about adding additional insureds such as employees and contractors. The premium upcharge of $25 is minimal. You can always call the NASW RRG to add additional insureds when you need the coverage. Typically a $1 Million/$3 Million limit is sufficient, especially for small or start-up practices.

An NASW RRG General Liability policy is also highly recommended and is required by your Landlord if you rent an office because it covers you and your entire practice for the major perils. The major perils include liability for slip and fall, bodily injury, personal injury, advertising injury, third party property, and fire legal liability. If you lead sessions or conduct therapy off-site, such as in a rented hotel conference room, or in another area outside of your office, and an attendee, or your client, is a victim of a pocketbook theft, for example, the GL policy covers this third-party loss. The NASW RRG General Liability policy annual premium starts at $159 per year which is about one-third of all other insurance company competitors for the same level of coverage limit of $1 Million/$3 Million.

We also recommend an NASW RRG Cyber policy (CLCS), Cyber Liability Choice Select. This policy protects you from HIPAA imposed punishment, and the premium starts at $59 per year for $5,000 in coverage. Additional coverage up to $25,000 is available too. CLCS covers all of the major cyber liability perils including legal defense, state and federal fines and penalties, damages, computer security breach expert audit, client notification costs, and ID theft subscriptions for victims. A small optional first-party coverage endorsement is available for your administrative employees and contractors. This way you are covered for both first-party and third-party information breach, and truly HIPAA compliant protected.

Posted in: Professional Liability FAQ