APA, Inc. Professional Liability Program - Frequently Asked Questions
Who is eligible?
All members of NAADAC who are licensed/certified addiction counselors, clinical supervisors, associates who have completed required education programs and are working toward license/certification, students, and credentialed peer recovery support specialists are eligible for coverage.
Do I need to be licensed or certified to obtain insurance?
Yes, you need to have a license or certification to obtain insurance unless you are a student or an associate working toward license/certification. If you are a peer recovery support specialist, you must have the NCC AP Nationally Certified Peer Recovery Support Specialist (NCPRSS) credential to obtain insurance. This policy will not provide coverage for professionals that do not have a license or certification if one is required for the type of practice and jurisdiction they are practicing in. If you are not sure of your state's requirements, please check with your state regulatory board.
Who provides the insurance coverage?
American Professional Agency, Inc. of Amityville, New York (APA, Inc.) administers the Professional Liability Insurance program. The program is underwritten by Darwin National Assurance Company a subsidiary of Allied World Assurance Company, rated “A” XV by A.M. Best and in the top 100 insurers in the nation for financial size.
How much insurance do I need?
You may want to consult with your attorney to determine the limits you should purchase. Many managed-care entities, hospitals, facilities and municipalities will require that you carry at least $1,000,000 per incident and $3,000,000 aggregate. We offer up to $2,000,000 per claim and $4,000,000 aggregate coverage.
What does the insurance cost?
Coverage for a Claims Made form increases each year for 5 years, and then levels off at the 5th year premium and for subsequent years. For example, a full time Professional needing $1,000,000/ $3,000,000 coverage will have the following premiums regardless of the state they work in:
- 1st year premium: $90
- 2nd year premium: $113
- 3rd year premium: $128
- 4th year premium: $143
- 5th year and subsequent years’ premium: $150
Premiums do not include state taxes or fees that may apply. A $25 Purchasing Group fee also applies to offset APA, Inc.'s cost of administering Professional Counselors Purchasing Group, Inc. Establishing a purchasing group gives purchasing power that benefits similar types of insureds.
Do you offer a reduced premium rate if I work part-time?
Yes, provided your total working hours in all positions (including W2 employment and clinical supervision) do not exceed 20 hours a week, you are eligible for a lower, part-time rate.
Is coverage on a Claims Made form or an Occurrence Form?
Our policy for Addiction Counselors is on a Claims Made Coverage Form. On a Claims Made form, a claim made against a counselor is covered under their current policy in force. If an insured decides not to renew a policy in a given year, an “Extended Reporting Period Endorsement” or “tail coverage”, may be necessary to protect against claims presented after the policy expires.A few advantages to our Claims Made program include:
- If limits are increased during the years of coverage, the current higher limits apply to a claim made during policy period, even if the incident occurred in a prior year.
- Free lifetime “tail coverage” or Extended Reporting Period endorsement is available if the insured permanently retires, is permanently disabled or has died. To be eligible for free “tail coverage” upon permanent retirement, the policyholder must be insured with APA, Inc. a minimum of 5 years and be at least 55 years old.
- If a policyholder wants to discontinue coverage with APA, Inc. and does not qualify for free tail coverage, “tail coverage” may be purchased for a one-time charge of 175% of the expiring premium. Claim history will not prevent an insured from purchasing tail coverage.
For a more detailed explanation of Claims Made vs. Occurrence, please call an APA, Inc. underwriter in the Addiction Counselors Department at 800-421-6694 x 2312.
I work for a facility that provides coverage for my professional liability. Does this mean I do not need my own Professional Liability Coverage?
Even though you are covered under your employer’s policy, here are reasons you should still purchase your own separate liability coverage:
- Your employer's coverage may not provide coverage for you for past incidents once you leave their employment.
- Your employer's coverage may lapse or be cancelled without your knowledge.
- Coverage provided by your workplace generally will not cover you for actions brought against you by a licensing board or other regulatory body. This coverage is available on an individual policy written through APA, Inc.
- A large claim brought against your employer and you may exhaust your employer's policy limits. Further defense costs or judgments may have to be paid out of your own pocket.
- Having your own individual coverage gives you “peace of mind” that you have an insurance company that represents your interests only.
I operate under a corporate name. Can I obtain coverage for my corporate entity?
Yes, a professional liability policy can be provided that covers your corporate entity as well as all owners and professional employees, para-professional employees, and independent contractors.
I am a Student member of NAADAC working on my educational requirements. Is there an insurance option for me?
Yes, students in an approved educational program can obtain insurance on an Occurrence Form for as low as $23 per year. Limits range from $1,000,000/$1,000,000 to $2,000,000/4,000,000 and will also cover you while working in field placement.
Where do I get an application?
You may click here to download our application and to see our Rate Sheet. If you prefer, call us at 800-421-6694 x 2312, Addiction Counselor Department, and we will email you an application.
How do I submit my application?
If coverage is needed quickly, the completed, signed application can be emailed to: email@example.com or faxed to 631-691-2259. Payments can be made by credit card or Vcheck online for quick processing. Or mail application, check and other correspondence to:
American Professional Agency, Inc.
Amityville, NY 11701
As an insured with American Professional Agency Inc., what should I do if I receive a summons or if I am aware a client has a complaint about me?
Always call our office if you receive a summons or become aware of an incident that could lead to a claim being brought against you. Liability policies require that claims and incidents be reported as soon as possible. Once reported, you will receive a booklet that explains the claims process and our Claims Department will work to assign you to an insurance claim adjuster/attorney. Our Claims Department will work as your advocate during the entire claims process.
Who can I contact if I want to discuss a hypothetical situation, or an incident or if I get a subpoena to release my records?
Eric Marine and Rosann Powell with American Professional Agency, Inc.’s Claims/Risk Management Department have a combined experience of over 50 years working with insureds to guide them through a claims process. They are also very experienced in guiding insureds regarding a variety of situations or questions that may not be related to a potential claim. Many potential claims have been averted due to the early intervention and actions of Eric and Rosann. Call 800-421-6694 and ask for Eric or Rosann. Calls will be confidential.
Who can I call if I have additional questions?
Call the APA, Inc. Program Administrator at 800-421-6694 and ask for the Addiction Counselor Department. You will always get a live person when you call and they will be happy to answer your questions.