CCAPP Conference 2016October 27-30 San Diego

Corporate Professional Liability

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Presented by:

Robert Sperber from The Van Wagner Group

&

Kent Barnes from

Great American Insurance Group

The information contained in this presentation is for informational and discussion purposes only and is not intended as legal advice. Great American Insurance Company, 301 E. Fourth St., Cincinnati, OH 45202. Coverage description is summarized. Refer to the actual policy for a full description of applicable terms, conditions, limits and exclusions. Policies are underwritten by Great American Insurance Company, Great American Assurance Company, Great American Alliance Insurance Company, Great American Insurance Company of New York, and Great American Spirit Insurance Company, authorized insurers in all 50 states and DC. The Great American Insurance Group eagle logo and the word marks Great American® and Great American Insurance Group ® are registered service marks of Great American Insurance Company. © 2016 Great American Insurance Company. All rights reserved.

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• Van Wagner Group is now the official endorsed insurance broker for the California Consortium of Addiction Programs and Professionals (CCAPP).

• Van Wagner Group is committed to growing and providing the highest service level to CCAPP and its members at a premium discount. We have five experienced insurance professionals dedicated solely to our Behavioral Health Purchasing Group.

• Van Wagner and Great American focus on human and social service organizations’ insurance needs and offer industry-leading coverage, expert knowledge, unmatched service and financial strength.

What Can We Do?

Endorsed by:

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• Extensive Coverage to a Multitude of Organizations: You want a policy that insures a wide range of exposures and delivers essential services.

• Extensive coverage available with easy-to-understand policy language: We offer an inclusive policy with Commercial General Liability, Property, Cyber Risk Insurance, Crime and Fidelity, Inland Marine and Hired and Non-owned Auto.

• Expert Knowledge: You will work with professionals who protect thousands of organizations like you. To stay on top of industry trends we emphasize continuing education and industry certification. Our team has over 30 years experience.

• Unmatched Service & Direct Access: When you have a question, it deserves a quick answer. So, we give you direct access to our underwriters. Patty Kenny is always available to take your call or email.

Why Us?

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Why Us?

insure-addictioncounselor.com

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When you experience a claim, this is the insurance policy’s moment of truth. Great American believes in fair claims handling and conduct ourselves with integrity in all claims matters.

To help manage expenses for your clients, we: • Settle meritorious claims in a timely manner and appropriately challenge

non-meritorious claims;

• Proactively manage files to ensure efficient litigation

• Target signs of fraud

• Aggressively pursue subrogation to seek reimbursement from a responsible party who may cause damage to your clients.

Claims Handling

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Thomas Van Wagner, founder of the Van Wagner Group, always had strong ties to the addiction treatment

field. He was in recovery starting in 1968 and was an advocate to the field in many ways.

He was a founder of the Friends of Long Island Council on Alcoholism; served as president of the New York

State Council on Alcoholism and was a board member of the National Council on Alcoholism and Drug

Dependence.

Tom’s insurance background began in lower Manhattan. He was proud that he was able to combine his

vocation and avocation into an agency that helps people who are in the business of helping others.

The Professional Liability insurance program he helped to create and refine for over 20 years is Tom’s

legacy. The program provides comprehensive professional liability insurance to all mental health

professionals, including students, peer recovery specials and individual drug and alcohol counselors all at

an affordable cost.

The Van Wagner Group was acquired by SterlingRisk in 2004. SterlingRisk is a top national insurance

brokerage that has helped the Van Wagner Group expand its ability to serve the needs of the addiction

treatment industry.

About Van Wagner Group

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A Company You Can Count On

For 35 years, Great American Insurance Group has provided insurance solutions to the human and social

service marketplace.

Over the years, they have expanded coverage and services to ensure that they are experts who can meet

the evolving needs of this marketplace.

Great American Insurance Group’s roots go back to 1872 with the founding of its flagship company, Great

American Insurance Company. Based in Cincinnati, Ohio, the operations of Great American Insurance

Group are engaged primarily in property and casualty insurance, focusing on specialty commercial

products for businesses, and in the sale of traditional fixed and indexed annuities.

Great American Insurance Company is currently rated “A+” (Superior) by A.M. Best*, and has received an

“A” (Excellent) or higher rating from the A.M. Best Company for more than 100 years.

The members of Great American Insurance Group are subsidiaries of American Financial Group, Inc.

AFG’s common stock is listed and traded on the New York Stock Exchange under the symbol AFG.

*A.M. Best rating affirmed May 12, 2016

About Great American

Great American – Undeniable Financial Strength

• Parent company named to the 2016 Ward’s 50list of top performers

• Parent company named by Forbes as one of the most trustworthy companies in America

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Essential Points of Coverage

Three Separate Coverage Parts and Limits in One Policy

1. Professional Liability Insurance

2. Commercial General Liability

3. Abuse or Molestation Coverage

Avoids any erosion of primary limits by

maintaining three separate silos of coverage

Professional Liability Coverage

• Covers Wrongful Act or Failure to Provide Services

• “Professional Services” includes any service that involves

specialized education, knowledge, labor, judgment, and skill that

is predominately mental or intellectual

– No cap and gown required

• Separate limit from General Liability or Abuse coverage

• Defense costs are outside limit of liability

• Direct and vicarious coverage for employees• Vicarious coverage for independent contractors available

• Direct and vicarious available for volunteer doctors and psychiatrists

• Additional Insured Endorsement Available

Professional Liability Claim Scenarios

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• Claimant alleges that Counselor implanted memories of abuse

during a counseling session

• Breach of confidentiality is alleged against a Counselor when

certain information is released to a probation officer

• After a client commits suicide, a Counselor is accused of failing to

render professional services

General Liability Coverage

• Broad named insured definition

• Broad additional insured coverage

• Defense costs outside the limit

• Broadened definition of personal injury

Also consider• Pay on behalf of vs. reimbursement

• No binding arbitration clauses

• Special events?

• Volunteers?

• Board members?

Abuse Coverage

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Why do you need Abuse coverage?

• Individuals and corporate counselors often provide care and other services to

vulnerable clients, such as children, elderly adults and the developmentally

challenged.

• These clients and the agencies that serve them need to have insurance protection

regarding damages from any form of abuse, not just sexual abuse or vicarious

liability.

How does Abuse Coverage apply

• Our Abuse or Molestation coverage limits are provided separately from the

Professional and Commercial General Liability coverage parts. This is an

important feature because other insurance industry abuse coverage forms often

reduce the amount of insurance limits available to pay for Professional or General

Liability losses.

• In addition, our Abuse or Molestation form provides claim and legal defense

expenses outside the coverage limits. This feature is significant because abuse

or molestation related claims may require the hiring of experts and specialized

legal representation which can be very costly.

Abuse Coverage

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• Coverage highlights

– Broad Named Insured Provision

– Broad Definition of Abuse

• Any act, threatened, or alleged act

• Sexual or non-sexual act

• Defense costs outside limit

– Additional Insured Endorsement Available

Other Lines of Coverage

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• Property Coverage Available

• Auto Coverage Available

• Umbrella Coverage Available

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Is the policy “Occurrence” or “Claims Made”?

This is probably the most important coverage feature to understand.

Occurrence coverage

• With this coverage it does not matter when a claim or suit is reported, the policy will

apply as long as the injury or damage sustained was during the policy period.

• The premium will typically not vary year by year on an occurrence form policy.

Claims-Made Policy

• This coverage will only cover claims reported while the policy is in effect provided the

injury or damage occurred after the retroactive date.

• If a claim is reported after the expiration date of a policy there would need to be a “tail

coverage” in place in order for that claim to be covered.

• Claims-Made policy premiums vary over the first five years.

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What is Tail Coverage, or an Extended Reporting Period, and why is this necessary?

“Tail Coverage” extends the amount of time insureds can report a claim after

the expiration date and can typically cost up to 175% of premium.

The extended reporting period extends the amount of time you can report a

claim that occurred back during your claims made coverage dates.

You would need to purchase the extended reporting period if you choose not to

renew your coverage, retire, or your coverage will lapse.

There is a real need for tail coverage in the event your carrier decides to non-

renew your coverage due to claims history or decides to non-renew the program

entirely.

What is a retroactive date? Does my policy have one?

Policies written on a Claims-Made basis contain a specific date on which

coverage begins (commonly known as the “retroactive date”) and provides no

coverage for claims arising out of occurrences that take place prior to

this date.

Tail Coverage and Extended Reporting

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Additional Value-Added Services

• Loss Prevention Services

• Discounted Background Checks

• SafetyFirst

• eLearning

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Questions?

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Thank you for attending our

seminar today!Van Wagner Website:

www.vanwagnergroup.com

or

www.insure-addictioncounselor.com

1(800) 735-1588