Important Considerations for Professional Liability Insurance in Mental Health and Substance Use Disorder Programs
Let’s talk about the important issues that you need to review in your professional liability insurance program for your mental health or substance use disorder program.
I have seen some pretty scary policies in my time. Here are the key areas you must carefully examine:
1. Types of Services Covered
First, you need to look at what type of services are covered, especially regarding medical services. If you can buy the policy online and it is cheap, it may exclude important medical coverage.
If you review the services covered, the policy will clearly define them and list exclusions. Pay attention to exclusions related to medical services, such as all detoxification services, all residential treatment programs, or all medical services, including psychiatry and physician care.
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That means if you bought something online and you are a counselling program, but you contract with a psychiatrist down the street, and your policy says all medical services are excluded, that is a grey area. You may be out of luck.
2. Who Is Considered an Insured
Secondly, you need to be looking at who is considered an insured. Are employees considered insureds on your policy? Are they covered? Are volunteers covered? Are independent contractors covered? And if so, how are they covered?
3. How Professional Services Are Covered
Third, how are professional services covered? Because in mental health and substance use treatment, sometimes you get medical doctors, sometimes you get psychiatrists, and you can get some people who are at the M.D. level.
You have to be really careful how you set up that agreement and what you are expecting your professional liability insurance policy to do. If you have not looked over that part of your program with a professional, you could have a serious problem.
Summary of Key Points
Once again, let’s go through the three things that you need to be looking at:
- Types of services covered
- Who is covered
- Whether professional services are covered by medical professionals
If this is making you ask some questions about your professional liability insurance program and you would like to talk to somebody with experience handling programs like yours, please request a quote at www.bitnerhenry.com.
I am Daryl Henry with Bitner Henry Insurance Group. We serve those who serve others.
FAQ
Q: Why is it important to carefully review my professional liability insurance policy?
A: Many cheap online policies have broad exclusions that may leave your mental health or substance use program unprotected in critical areas.
Q: What are the most common exclusions to watch for?
A: Common exclusions include detoxification services, residential treatment programs, and all medical services. These can create major coverage gaps.
Q: Are employees, volunteers, and independent contractors automatically covered?
A: Not necessarily. You must check whether they are named as insureds and under what conditions they are covered.
Q: Why is coverage for medical professionals especially important?
Mental health and substance use programs often work with psychiatrists and physicians. Confirm that professional services from these medical professionals are clearly defined and covered in your policy.
Q: What should I do if I am unsure about my current policy?
A: Have an experienced insurance professional who specialises in behavioural health programs review your policy to identify any dangerous gaps.
Conclusion
Professional liability insurance is one of the most critical protections for mental health and substance use disorder programs. Taking the time to thoroughly review what services are covered, who is insured, and how medical professionals are protected can prevent serious financial and legal risks. Cheap policies often come with dangerous exclusions. Working with an experienced insurance group like Bitner Henry Insurance Group can help ensure your organisation has the proper coverage it needs to safely serve your clients.
