Insurance for Mental Health Risks

Dmitriy Glazer, a Partner at Paperless Insurance Services Inc., has written more than 25 mental health risks. Located in California, Paperless Insurance Services is an environmentally-friendly independent insurance agency focused on Property & Casualty insurance products for small to medium-sized businesses.

With more than 7.5 years in the insurance industry, Glazer is most familiar with consulting and rehabilitation risks, specifically mental health counseling, mental health therapists, in-home support, assisted living and adult day health care.

He explains that, “As with every risk, the most interesting [aspect] is to be able to assist executives in shifting the risks, associated with general liability, professional liability and workers compensation.”

Glazer has noticed that some of the biggest liabilities he has seen with mental health risks depends on the type of facility. For instance, for insureds that provide transportation, these mental health facilities have high risk for injuries of their passengers.

“For assisted living, [they] lack good locks and entry alarms on external doors,” he explains.

For other mental health professionals, Glazer has noticed a variety of common liabilities such as misleading statements regarding quality of care, costs in the advertising materials, incomplete or outdated patient records, and confidentiality and data breach.

In order to truly understand mental health risks, Glazer believes that a broker must complete a “comprehensive and thorough review of the insured’s operations, including breach of confidentiality, transportation and abuse exposures.”

For risk management purposes, Glazer feels it is extremely important for insureds to establish and follow strict guidelines.

“We do our best to make it very important for our insureds to establish and follow strict policies, procedures, formal accident investigation and reporting policies,” He explains. “[We provide] examples of different accidents, prevention and risk management tools.”

When writing mental health risks, Glazer links the biggest mistake made by brokers to not mentioning Professional Liability exposures.

“Insureds are not aware of increasing data breach exposures and confidentiality exposures,” he explains. “Many professionals are not aware that business liability does not provide coverage for exposures associated with professional liability [and] errors & omissions.”

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