Choosing First Insurance Policy
Q. I am in my final year of residency and plan to enter private practice upon completion of training. I will need to purchase professional liability insurance for the first time. What factors should I consider in making my decision?
A. Purchasing professional liability insurance is one of the most important practice decisions you will make. There are several steps you can take to ensure a wise decision.
1.
Learn the basics about insurance terms and concepts. The Psychiatrists' Program, the APA-endorsed Psychiatrists' Professional Liability Insurance Program, offers an online presentation titled “Insurance 101” that explains the mechanics and key provisions of professional liability policies. (The Program's Web site is<www.psychprogram.com>.)
2.
Determine the scope of your intended practice and determine what coverage you will need. For example:
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Will you be practicing full time or part time?
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Will you be doing any forensic work?
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Will you be writing a mental health column for your local newspaper or hosting a radio talk show on psychiatric topics?
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Do you intend to administer or prescribe electroconvulsive therapy?
3.
Develop a list of features and benefits that are important to you and to the scope of your practice. For example:
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Do you want occurrence or claims-made coverage?
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How much coverage will you need?
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Do you want to have the right to consent to proposed settlements of claims against you?
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Do you want coverage for the legal expenses you may incur if you are investigated by state licensure boards (that is, administrative defense coverage)? How much coverage will you need?
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Do you want to have access to psychiatry-specific risk management materials and seminars?
Use this list to review the coverage offered by each company you are considering—do some comparison shopping. To help get you started, the Program has developed a checklist, “Before You Sign,” that presents features and benefits to consider. You can access it at<www.psychprogram.com> or request a copy via e-mail at [email protected].
4.
Research the insurance companies you are considering.
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Ask each company how long it has offered professional liability insurance for your specialty in your geographic area. Some carriers have a history of dropping coverage of certain specialties or in specific areas. A stable insurance company shows a commitment by providing coverage during both the good and bad times in the professional liability insurance market.
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Find out whether the companies you are considering have expertise in handling liability claims against psychiatrists and providing psychiatrists with risk management advice.
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Research the insurance carrier's financial strength. One way you can evaluate an insurance company's financial strength is through an A.M. Best rating. Go to<www.ambest.com> to learn a company's rating. A.M. Best assigns a rating to a company only after an evaluation of the company's financial condition and operating performance. (The carrier for the Psychiatrists' Program is rated A++ by A.M. Best.).
Q. Does the Psychiatrists' Program have risk management information specific to treating children and adolescents?
A. Yes. The Program's risk management staff understands that psychiatrists working with children and their families face unique challenges regarding issues such as prescribing medications, maintaining confidentiality, and obtaining informed consent. In response, we have developed a series of risk management articles and resources addressing child and adolescent psychiatry. As a benefit of participation, these resources are accessible in the online Risk Management Library in the “For Participants Only” section of the Program's Web site.
The most recent issue of the Program's psychiatry-specific newsletter, Rx for Risk, featured an article titled “Talking to Patients and Families About Medications: Improving Quality of Care and Reducing Professional Liability Risk When Prescribing for Children.” This article addresses how the quality of patient care can be improved and liability risks reduced by using a psychotherapeutic approach when talking to patients and families about medications and by employing the risk management strategies of information gathering, communication, and documentation.
Among the articles to which participants in the Program also have online access are the following:
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“Risk Management Issues in the Psychiatric Treatment of Children and Adolescents—Confidentiality”
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“Separation, Divorce, and Child Custody Issues”
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“Child and Adolescent Treatment Issues”
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“Release of Minors' Confidential Information to Parents—Does HIPAA Change Anything?”
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“Child Custody Evaluations and Risk Management”
If specific questions arise in the practice of child and adolescent psychiatry, participants are encouraged to call the Risk Management Consultation Service. This value-added benefit allows participants the opportunity to have questions addressed by experienced risk managers.
Complimentary copies of “Risk Management Issues in the Psychiatric Treatment of Children and Adolescents” are available to nonparticipants by calling (800) 245-3333, ext. 389.
This column is provided by PRMS, manager of the Psychiatrists' Program, for the benefit of members. More information about the Program is available by visiting its Web site at<www.psychprogram.com>; calling (800) 245-3333, ext. 389; or sending an e-mail to [email protected].▪
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Published online: 2 July 2004
Published in print: July 2, 2004
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