Over the years, group practices have been more traditionally structured as sole proprietorships, partnerships or corporations. As a counselor or human development professional participating in one of those relationships, you can protect yourself by sharing in professional liability coverage offered through a group policy. This coverage protects the business owner, as well as the staff. But what do you do about professional liability coverage if you participate in a practice that is part of the growing trend of a less formal business relationship?
Many human development practitioners are now sharing office space and aligning themselves with other professionals to increase everyone’s ability to attract and service clients, and at the same time reduce costs. There are many positive aspects to these arrangements, yet as a counselor or human development professional you must be aware that these arrangements can increase your exposure to professional liability. Therefore, you should take steps to protect yourself with the right kind of professional liability protection.
How do you know if you are taking on more risk than you intended? If you are not in a traditional business arrangement (sole proprietorship, partnership or corporation), are you in a situation that may include one of the following scenarios: clients see more than one counselor in an office; group sessions are conducted by more than one professional in a shared office setting; you share office staff; client records are stored in a common area; fees are shared with other human development practitioners; the sign on the office door has a name that leads the public to think you are a traditional group practice?
If your practice or the practice you are affiliated with falls into any of the above scenarios, you open yourself up to a different area of legal risk than that of a traditional business arrangement. One key way to protect yourself in the event of legal difficulties is to apply for professional liability insurance as an individual. This affords you the proper protection, should you be included in a lawsuit that is a result of a practitioner with whom you share office space. You’ve worked hard to build your practice, and you want to be able to have the peace of mind knowing that your insurance carrier will provide you with representation against legal actions that you did not cause. Healthcare Providers Service Organization (HPSO), the endorsed professional liability program of the ACA Insurance Trust (ACAIT), can bring you and your practice the protection that is essential to you.
Whether you choose to participate in a sole proprietorship, partnership, corporation or remain independent but share office space, you can take steps to reduce your risk of a malpractice lawsuit.
- Check the references of new professionals joining a traditional group practice or shared office setting. It is necessary for you to know who is joining the practice and what their background is.
- Keep records separate. If you are participating in a non-traditional group practice, your records are confidential and should not be in a common file area. Unless you are consulting on a professional basis with of the other practitioners, your records should be in a location where only you can view them.
- Consider adding individual phone lines with separate numbers. Even though you are sharing office space, you are still an independent human development practitioner.
- If you engage in peer consultation, do not use client names, and consider using the term “peer consultation” rather than “peer supervision.”
- Make sure that those with whom you share office space keep their own professional liability insurance current and carry the same limits of liability as you.
- If you are part of a “loose association” or shared office situation where someone else takes care of insurance, never assume that everything is up to date. Be sure to check the records and make certain that all counselors or human development professionals have provided a current copy of their policy certificate. Also, be certain the policies are renewed at the due date.
Remember, if you are a sole proprietorship, partnership or corporation and are doing business as such, then you should obtain coverage under a group policy. There are several benefits to using the group approach. The most important is that the business, employees and independent contractors are covered under the policy and share in the limits of liability. But, if you are not operating as a traditional business, you will need to purchase individual coverage to properly protect yourself.
Healthcare Providers Service Organization (HPSO) provides professional liability protection whether you are in a traditional or informal practice setting. As the endorsed program of the ACAIT, HPSO is prepared to meet your coverage needs. For more information, please call ACAIT at 800-347-6647, extension 342. If you want to receive an application or you have any questions regarding professional liability insurance as an individual, you can call HPSO at 1-800-982-9491, or if you are incorporated and interested in a group policy, please call 1-888-288-3534.
