PRMS Offers Risk Management Resources

A. A complimentary copy of “Risk Management Resource for Psychiatric Practice: A Comprehensive Manual for Psychiatrists and Mental Health Professionals” is provided to all participants in the Psychiatrists' Program. The most recent release of this resource was sent in August and will be available in the “For Participants Only” section of the Program's Web site at<www.psychprogram.com> later this year. New participants in the Program receive the CD-ROM as part of their “Welcome Kit.”

Developed by the Program's risk management department, this manual is the most extensive psychiatric risk management resource available. It provides guidance to psychiatrists in developing and refining a risk management approach that works specifically for their individual practices.

These are among the topics it includes:

Other resources on the CD-ROM include an archive of the risk management newsletter Rx for Risk, a library of risk management articles, access to multimedia tutorials on insurance and risk management topics, the HIPAA Manual, and customer-service information.

This resource is just one of the many benefits of participation in the Psychiatrists' Program. If you are not a participant in the Program, please call (800) 245-3333, ext. 389, for additional information.

A. You do not have to purchase a tail endorsement to move from your current claims-made policy to a claims-made policy with the Program. One advantage of a claims-made policy is that it can be moved from one carrier to another as long as the new carrier issues the coverage with the retroactive date of the expiring policy. The retroactive date is the first date of coverage for a claims-made policy. The purpose of the tail policy is to provide coverage for claims caused by errors or omissions that occurred on or after the retroactive date of a policy period and reported after a policy has expired or been cancelled. No gap in coverage is created if the retroactive date of the new policy is the same as that of the expiring policy. Rates for the new policy will be determined based on the retroactive date of the expiring or cancelled policy.

The purchase of a tail endorsement becomes necessary once you have cancelled your claims-made coverage for the last time. Costs for the tail endorsement vary by company and can range from 150 percent to 200 percent of the mature claims-made premium. Many carriers waive the cost of this endorsement for cancellations due to death, permanent disability, or retirement. The waiver of premium for reasons of retirement may also require the insured to have had coverage with the company for a consecutive period of time and be a certain age. The Psychiatrists' Program requires insureds to have had their claims-made coverage with the Program for five consecutive years and be at least age 55.

Other underwriting issues may be considered; therefore, it is recommended that you contact the Program for the specific guidelines and rates applicable to converting your claims-made coverage from one carrier to another.

The Program offers claims-made, occurrence, modified occurrence, or claimsmade with prepaid reporting endorsement policies (policy type may vary by state).

A. Yes. The Psychiatrists' Program has developed an online resource,“ Risk Management Alerts and Advisories,” that is devoted to keeping psychiatrists current on new issues. These are among the recent topics on the risk management alerts page:

This online resource is frequently updated and is available by visiting<www.psychprogram.com/Risk-Management/alerts.htm>.

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].▪