This column is provided as a service to the membership by the Psychiatrists' Purchasing Group Inc. (PPG), operator of the APA-sponsored Professional Liability Insurance Program.

I am the administrator of a group practice. Recently many of the group members have been inquiring about the benefits of purchasing professional liability insurance as a group as opposed to purchasing individual policies. Are all group policies the same or should I consider specific issues when selecting a policy for my group?

All group policies are definitely not the same. Being covered under a group policy will benefit not only the corporate entity, but also the individuals themselves as long as the policy includes the following:

1. Separate limits: In addition to covering each psychiatrist, the policy should provide separate limits for the corporate entity.



2. Flexibility: You should be able to update your schedule of employees and add other policy changes immediately upon notifying your carrier of the changes. Proof of your coverage changes should be immediately sent to your group.



3. Security: Both the insurer and the reinsurer's financial rating should be considered. Ideally, they should be rated at least "A" by both Standard & Poor and AM Best.



4. Risk Management Services: Toll-free access to risk management specialists should be provided, at no charge, by your carrier. Obtaining advice and guidance prior to and during an event can significantly narrow your risk exposure. Additionally, you should have access to risk-reducing educational seminars. Although education has helped many physicians decrease the risk associated with their practice, few seminars specifically address the issues surrounding the behavioral health care industry. The risks in your practice are different from those in other specialties, so be sure your carrier offers risk management seminars designed to combat the risks in psychiatry.
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I recently received my renewal notice from my state's professional liability insurance carrier. Traditionally, during renewal I "comparison shop" to try to find the least expensive coverage, but this year it has been more difficult to compare policies. Many of the carriers I have contacted have in some way modified their coverage from the previous year. My current carrier has not modified its policy in over three years, leaving me with a feeling of stability. What motivated these other companies to make these changes? How can I be sure I am with the least expensive carrier if they all are offering different policies?

The behavioral health care industry is dynamic_constantly facing new trends, standards, and risk exposures. The changes in coverage you are seeing will enable those carriers to provide the financial protection for which you are paying. The stability you may feel with your current carrier is questionable if your carrier has not updated its policy to meet the changing exposures of the behavioral health care industry in over three years. What may have been sufficient then may be inadequate now. When comparing policies, compare all aspects, not just price.

For more information, call PRMS at (800) 245-3333; in the Washington, D.C., area the number is (703) 907-3800.

APA welcomes the opportunity to hear from you about APA-sponsored benefit programs. Send your questions on the APA insurance and special benefit programs to Benefacts, Psychiatric News, APA, 1000 Wilson Boulevard, Arlington, Va. 22209-3901.

(Psychiatric News, March 7, 1997)