Insurance (continued)

Professional Indemnity Insurance

Are you at risk?

As a member of AFT you’re probably aware that professional liability insurance is available to protect you but you might be wondering exactly what it covers and why you need it.

What could happen to you?

As a practicing psychotherapist you could be sued by a client or their legal representatives if they felt they had suffered financially or emotionally as a result of your work with them.

Even if their allegations are wrong, it could still be costly to defend them. You might also have to defend a disciplinary action from your professional body following a complaint, which could also be very complex, stressful and expensive.

What would that mean for you?

If either of these were to happen to you (a claim or a complaint) you face the prospect of:

• Your personal assets (such as your home) being at risk
• Your reputation suffering
• Your ability to work being affected
• Your income threatened
• Your time tied up in a stressful, complex process

What are the most common causes of claims?

Towergate’s research highlights 7 common causes of claims against psychotherapists:  In no particular order:

• pecific boundary violations – eg sexual contact, invitations or suggestions of friendship, inappropriate use of touch;

• Bullying or disrespect – eg inappropriate / out-of-context use of language;
• Emotional or financial exploitation – eg over charging, encouraging unnecessary dependence;
• Inappropriate disclosures by the practitioner or others – eg inappropriate self disclosures;
• Inappropriate encounters with others – eg clients meeting partners / children at your home;
• Giving and receiving of gifts and social invitations;
• Professional incompetence – eg acting without seeking guidance / assistance from others;

These are regarded as “professional risks” – i.e. resulting from your professional day to day activities.  However, there are a number of other common sources of claims which Towergate experiences.  For example:

• Personal Injury – eg where a client injures themselves and you are held responsible;
• Allegations of a breach of confidentiality – eg personal client information inadvertently disclosed to a third party;
• Allegations of a breach of copyright law – eg unlawful use of imagery or copy on a website or in advertising material;

In addition Towergate recognise there are a number of activities which place a therapist at the “riskier end of the spectrum”: Again, in no particular order:

• Working from home – because it is often difficult to control what’s going on in the home environment and it is not always best suited to dealing with the continual arrival and departure of clients. 
• It’s worth pointing out that working from home can also affect your household insurance so you must notify your household insurers if you are working from home and especially if you are seeing clients at home. 
• Expert report writing / client assessments – because such work is often scrutinised by a number of interested parties and often relates to litigious circumstances
• Not working within a “client contract” or statement of expectation – because clients will have a set of expectations from the start and, if you are not meeting or managing those expectations, it can lead to a dispute and ultimately a breakdown of the therapeutic relationship.   

But do you really need insurance?

Claims and complaints against psychotherapists are thankfully rare but they do happen, even to highly trained, experienced therapists and, sadly, there is an increasing propensity for clients to seek redress via legal means rather than working through their problems with their therapist.

In Towergate’s experience most claims in this arena are highly complex and emotive and require delicate handling by a team of specialists.  However, hiring specialists does not come cheap and the legal costs and expenses incurred in defending your reputation can often be the most costly part of the claim.  Add to that the cost of any financial compensation awarded and you can imagine how the ultimate cost could be very high indeed.

To put this into perspective Towergate has handled claims settlements totalling £2.76m over the last 4 years.

If you faced an allegation and you weren’t insured, the consequences could be very serious - you could even lose personal assets such as your home. 

Insurance is a simple cost effective way to cover this risk and achieve peace of mind.

What does Towergate’s insurance scheme for AFT members provide?

• The policy covers you against your client suing you in the civil courts.  In addition it will protect you in the event of a complaint or disciplinary proceeding being brought against you by your regulatory body.
• The limit of indemnity you choose to buy covers any  financial compensation awarded against you (or agreed out of court) and applies separately to every single claim.
• The legal costs and expenses incurred in defending you throughout the claim are in addition to the limit of indemnity and, very importantly, are not limited – allowing you unlimited access to some of the most experienced lawyers in this field.  
• There is no excess or any other contribution for you to pay.
• Insurance is provided by AXA Insurance UK plc – a well established global insurer who has a vast amount of experience in settling complicated claims against psychotherapists – helping to protect your reputation when you need it most. 
• All aspects of an AFT member’s work can be covered

What if it happens to you?

If you receive notification of a claim or you realise you may have done something which you feel may give rise to a claim, or even if you just think “I’m not sure I should have done or said that”…

…you must pick up the phone to your insurer immediately (Towergate’s claim number is 0113 391 9492).  Do not respond to or say anything until you have spoken to your insurer.

From the moment you pick up the phone to Towergate they will give you all the financial and emotional support you will need to defend the claim. There is nothing for you to pay and any legal costs incurred will be paid directly by the insurer.

What limit of indemnity should you buy?

The best advice is to buy as much as you can reasonably afford, taking into account the clients you are working with.  Towergate has recently managed claims where the claims reserve has exceeded £1million.

Ultimately it is up to you to decide what you feel is appropriate to give you peace of mind.

For further information Towergate Professional Risks can be contacted

on 0113 391 9555

www.towergateprofessionalrisks.co.uk

Top

<< Back