Canadian Association
        of Occupational Therapists

Coverage Options

What Coverage Do I Need?

As an occupational therapist, you require professional liability insurance to register with your regulatory College. We all know that. But things get a bit more complicated for occupational therapists who are independent contractors or business owners.

Insurance and liability are complex subjects as are the offerings and policies that support them. It is important to understand the difference between the different insurance options available to you in order to identify the most appropriate coverage for your practice circumstances.


Coverage Definitions

Professional Liability

Regular interaction with clients is a consistent part of any occupational therapy practice and is a daily occurrence. With this in mind, you may face situations where your clients look to hold you responsible for injuries they deem to have received as a result of your professional services.

Professional Liability insurance (PLI) protects you against liability or allegations of liability for injury or damages that have resulted from a negligent act, error, omission, or malpractice that has arisen out of your professional capacity as an occupational therapist. PLI protects occupational therapists by ensuring that your legal defence is coordinated and paid for if a claim is made against you. Your PLI also covers the cost of client compensation, or damages.

Professional Liability

Clinic Professional Liability

Clinic Professional Liability insurance (Clinic PLI) protects your business assets in the event that your business name is included in a statement of claim or lawsuit.

In the event of an incident, the client will most likely name not only the treating therapist, but also your business as the larger provider of services. Business owners should consider purchasing this coverage if other occupational therapists are billing under the business name.

Clinic PLI is intended for clinics providing only occupational therapy services. Coverage limits are shared between yourself and your business name and are subject to an additional premium. This coverage can be purchased through the CAOT.

Please note that this coverage should be purchased by one individual on behalf of all business owners, employees, and / or the business entity.

If you work independently or are a sole proprietor with no other health professionals billing under your business name, your CAOT individual PLI policy will automatically extend to cover your business name,

Clinic Professional Liability

Multi-Discipline Clinic Professional Liability

Multi-Discipline Clinic Professional Liability insurance (Multi-Discipline Clinic PLI) protects your business assets in the event that your business name is included in a statement of claim or lawsuit.

In the event of an incident, the client will most likely name not only the treating therapist, but also your business as the larger provider of services. Business owners should consider purchasing this coverage if other health professionals beyond occupational therapists are providing services on behalf of the clinic.

Separate coverage limits are afforded to the clinic itself, while each professional employed or contracted by the clinic is required to provide confirmation that they carry their own Individual Professional Liability Insurance.

Please note that this coverage should be purchased by one individual on behalf of all business owners, employees, and / or the business entity.

Multi-Discipline Clinic Professional Liability

Commercial General Liability

Commercial General Liability (CGL) insurance protects you against claims arising from injury or property damage that you (or your business, including your staff) may cause to another person as a result of your operations and/or premises. For example, a client may fall and injure themselves on a wet floor in your office and look to hold you or your business responsible (they have experienced a bodily injury as a result of your premises). That’s why CGL is so commonly referred to as “slip and fall” insurance.

CGL coverage is recommended for occupational therapists who own or operate clinics.

This coverage is also recommended for independent practitioners who contract out their services or bill under their business name. As an example, if you are an independent contractor and accidentally cause damage to the property in which you are working, the property owner may look to hold you responsible for compensating them for the costs of repairs. Your CGL policy would respond under these circumstances.

Commercial General Liability

Clinic Package (Commercial General Liability, Contents, Crime and Business Interruption)

The CAOT program offers a Clinic Package, which includes Commercial General Liability Insurance (CGL), Contents, Crime and Business Interruption. Alternatively, members are able to purchase stand-alone CGL insurance.

In addition to the CGL protection outlined above, this package also protects your business and the contents within from losses associated with property damage (such as fire) and crime. Contents Coverage protects against damage to property, including professional equipment, and loss of revenues caused by an interruption of business activities arising from an insured loss. Crime Coverage insurance protects against financial loss due to dishonesty, fraud, or theft of money, securities or other property owned by the business/office.

Clinic Business Package

More details:

Coverage

Limit

Office Contents
Covers the contents usual to an office (i.e. desk chairs, filing cabinets and computers while situated at the address indicated on your certificate). This policy provides “All Risks” of direct physical loss or damage to all assets (subject to policy exclusions) that you own or that you are responsible to insure. Please click here to learn more about Co-Insurance, and how to calculate the required insured limits of coverage.
$100,000 (unless otherwise specified)
Deductible $500
Professional Fees
Covers the expenses incurred through the use of professionals in order to prepare, prove and/or quantify a loss.
$10,000
Deductible $500
Exhibition Floater – Enhanced Coverage!
Protects your contents and equipment while on exhibit (ex – conferences).
Now $25,000!
Deductible $500
Valuable Papers and Records
Covers the additional expenses incurred to reproduce written, printed or otherwise inscribed papers following a loss.
$50,000
Deductible $500
Business Interruption
(loss of Profit or Rental Income)
Extra Expense
Covers the additional expenses you incur in order to maintain normal operations after an insured loss.


$25,000
Deductible $500
Sewer Back-Up Extension
Covers property damaged as a result of sewers or drains backing up into the premises.
Limit of Property Insurance On Your Certificate
Deductible $1,000
Miscellaneous Articles Floater
Computer Equipment

$10,000
$50,000
Deductible $500
Crime
Covers loss of property (including money) due to theft on/off your premises.
Employee Dishonesty $10,000
Loss inside the premises $10,000
Loss outside the premises $10,000
Computer Fraud or Transfer Funds $10,000
  Deductible Nil
Commercial General Liability $5,000,000 $1,000 Deductible (Property Damage)
Replacement Cost
Repairs or replacement will be made with material of like kind and quality without cost to you for depreciation.
 

Building Coverage

Occupational therapists who own the building in which their clinic(s) are located have additional insurance considerations. Building coverage insures the bricks and mortar of your property, protecting you against loss or damage from a broad range of causes, including natural disasters and other threats to business operations, such as vandalism.

Cyber Security & Privacy Liability Coverage

Cyber liability is one of the fastest growing areas of risk, and healthcare professionals are not immune. Participants are now eligible to purchase comprehensive Cyber Security and Privacy Liability coverage to protect against claims arising out of theft, loss, or unauthorized disclosure of a third party’s personally identifiable information. Coverage is designed to manage the risk of holding increasingly large quantities of personally identifiable data of clients, employees, and others, and to mitigate the reputational damage resulting from a data security breach.

Cyber brochure (.pdf)

Employee Fidelity Bond

Protect your clinic against employee theft with Employee Fidelity Bond coverage. A fidelity bond should be considered when your employees are entrusted to handle cash or other valuable assets, belonging to you and/or your business.

Now that you are familiar with the various coverage options available, please identify yourself using the list below to assist in identifying the recommended insurance coverage for your practice circumstances.

I am a:

Occupational Therapist – Independent Contractor

(Billing under your own business name; no other health professionals billing under your business name)

  • Professional Liability
  • Commercial General Liability
  • Clinic Package – if you have valuable contents / stock

Occupational Therapist – Employee

(Billing under your employer’s business name)

  • Professional Liability

Occupational Therapist – Clinic Owner

  • Professional Liability
  • Clinic Package
  • Clinic Professional Liability - if you operate a clinic with ONLY occupational therapists
  • Multi-Discipline Clinic Professional Liability - if you operate a clinic with various healthcare professionals
  • Building Coverage – if you own the building where you operate

Occupational Therapist Assistant

  • Professional Liability
    As a CAOT member you have access to a combined OTA/PTA professional liability insurance policy. Please contact the CAOT directly at 1-800-434-2268 to purchase this policy.

Please note that this list provides an initial framework for decision-making but should not be considered comprehensive broker advice, nor should it be relied upon as such. You should always speak with an insurance professional at BMS Group to determine the most appropriate coverage for your specific practice circumstances. If you require additional assistance in determining the most appropriate coverage for your specific practice circumstances, please contact a BMS representative at 1-855-318-6024 or caot.insurance@bmsgroup.com