H & L Balen Insurance for Members of The UK Reiki Federation

Glossary

Last updated July 2004. Relates to the pages:

• Insurance & Financial Services for Members of The UK Reiki Federation
  (introduction)
    and
• About Balens Insurance for Members of The UK Reiki Federation
  (main features of the scheme)
   

For the sake of this document, the insured will be referred to as ‘the therapist’, Balens will be referred to as ‘us/we’ and the client of the insured will be referred to as ‘the patient’.

1ST PARTY
The insured (the therapist)

2ND PARTY
The insurance company

3RD PARTY
The client of the insured (the patient)

BREACH OF CONFIDENTIALITY
Where someone (not necessarily a patient) alleges that ‘the therapist’ has divulged information detrimental in some way or which could cause loss to them.

CHILDREN (and treating them)
Parents must give their consent to children under the age of 16 years being treated and they must be present at all time whilst such therapy is being administered for the policy to be valid.

CLAIMS MADE POLICY
Most professionals have this type of policy. It covers ‘the therapist’ when an incident is discovered, not when it is alleged to have taken place. This is the type we mainly offer other than Osteopaths schemes and a few others.

When retiring or ceasing a policy, ‘the therapist’ needs to ensure that any new carrier will pick up the previous period insured, or that ‘the therapist’ purchases at a reduced premium some “Run-off” cover (see below).

Cover can be backdated, if for example ‘the therapist’ accidentally missed their renewal date, and cover can be updated and improved each renewal. Any claim made after the update will be dealt with under the wider cover, even though the event may have taken place in a previous year. The statute of limitation (normally 3-6 years from date of discovery of a problem not from the date of giving the treatment) means that ‘the therapist’ does not need run-off cover indefinitely. The statute regarding children is 3 yrs from date of majority, and Courts may overturn this statute in respect of children. There is no limitation period regarding mentally disabled patients. For this reason we recommend patient notes are never destroyed if therapist have treated children or the disabled.

CLAIMS OCCURRING POLICY
A type of policy (usually Public or Civil Liability wording) where a claim is agreed to be triggered by the date the incident was alleged to have taken place. There is no need to keep a policy going after retirement or when changing to another policy. ‘The therapist’ is locked into that type of wording, and any claim will be based on the cover and amount which was in force at the time of the incident which is alleged to have occurred, however long ago that may be. Retroactive cover is not automatically included but some insurers will allow clients to buy it at usually quite high cost. Gaps between missed periods are not normally picked up by this type of cover.

COMMON LAW DUTIES
The duty of the insured to take reasonable steps to prevent peril and therefore mitigate a loss.

CRIMINAL PROSECUTION
Alleged Breaches of Criminal Legislation, which may be taken to Court. Defence cover is provided, but not cover for fines.

 

DISCLOSURE
Information that ‘the therapist’or client needs to divulge to us that may affect their policy cover – both what they tell us upfront and what they need to tell us to keep us up to date during the policy term. Any policdy issued is based on the information the client puts in the form.

EMPLOYERS LIABILITY
This covers ‘the therapist’ for injuries sustained by any employees or work experience assistants. This cover is a legal requirement where ‘the therapist’ employs staff, and the employer’s liability certificate needs to be displayed in the workplace.

EXCESS
The amount ‘the therapist’ is liable for in the event of a claim. There is a nil excess on Malpractice cover, but £50 / £100 excess on Contents cover.

INDEMNIFY
Definition – to protect someone or something against possible damage or loss by paying an indemnity to cover the costs.

INDEMNITY
Definition – protection against possible damage or loss, especially a promise or payment, or the money paid if there is such damage or loss
N.B. The insurance company indemnifies ‘the therapist’, not the public.

INDEMNITY LIMIT
The amount for any damages awarded against ‘the therapist’ in Court, or as an out of court settlement figure

INSURABLE INTEREST
‘The therapist’ and any interested parties.
(E.g. a bank or building society may have an interest in a property being insured and their interest would need to be noted on the policy documentation.)

JOINT POLICIES
These can be made available to two people who have a working connection – i.e. they are only working together at the same practice. However, there are two main drawbacks.
A) If the partnership breaks up there’s a problem, since if one partner has a claim it affects the other person’s policy.
B) The two policy holders have to share the limit of indemnity between them. Therefore, for example, if one claim uses up the indemnity, there is none left to answer a claim made against the other partner

LEGAL & DEFENCE COSTS
The amount to pay for the legal advice and support throughout the process. This can be a large amount and some policies include this within the Indemnity limit, thus reducing the amount of total cover. We give unlimited cover.

MATERIAL NON-DISCLOSURE
This raises the question ‘Is there anything we have not been informed of that may affect Underwriter’s decision to accept the risk?’

MEDICAL MALPRACTICE
This is where ‘the therapist’ has not performed with a reasonable degree of skill and care, resulting in possible injury or loss to ‘the patient.’

MULTI-THERAPY COVER
We cover as many therapies as requested, provided that suitable qualifications are supplied. The cost of the policy is dependant upon the therapy in the highest risk category.

NO CLAIMS DECLARATION
A very important declaration by ‘the therapist’, confirming that they have become aware of no claims or suits or any circumstances which could reasonably lead to a claim being made against them or action initiated against them, since the time of signing their proposal form or renewal declaration form. Cannot proceed without it.

PRODUCTS LIABILITY
This covers ‘the therapist’ for any defect in goods (e.g. Medicines, supplements or health aids) sold, supplied or demonstrated to ‘the patient’ which may cause injury or damage. Even if ‘the therapist’ did not manufacture the item concerned and innocently passed it on, under EEC directive, the Consumer Protections Act etc., ‘the therapist’ will still be initially held liable. I.E. the last person to pass on a product can be held liable.
(N.B. some policies we offer have a £5,000 limit selling to non-clients)
We can do higher more specialist covers for Health Products if required, but need a separate form for this.

PROFESSIONAL INDEMNITY
This is a commonly misunderstood term, and refers to a cover which indemnifies (i.e. protects) ‘the therapist’ against any allegations of loss arising from the conduct of his / her occupation, whether treating or not. This can cover financial loss due to inadequate or incorrect advice, consultancy work etc., and applies where injury has not been caused. Breaches of Duty of Care come under the Law of Negligence or “Tort”. Our wide definition of cover is not restricted to treatment only. Covers claims made against ‘the therapist’ as a result of their conduct of occupation.

PUBLIC LIABILITY
This covers liability at law for causing injury to other people (not necessarily clients / patients) for damage to their property, provided that no treatment or advice was the reason for the incident.

 

RETROACTIVE COVER
Cover for period of work prior to the current policy term.

RUN-OFF COVER
Lapsing policies need to be advised to have run-off cover in order to answer any claims made relating to work previously carried out.
(Free Unlimited run-off cover in event of Death, Permanent Disability or Permanent Retirement is available with some of our schemes.)

Before policy term		During policy term		After policy term
Retroactive cover bought with current policy covers this period of work		Work carried out during policy term is of course covered by policy		‘The therapist’ requires run-off cover for any claims made after the term of the policy. The statute of limitation (normally 3-6 years) means that they do not need run-off cover indefinitely.

N.B. The limit of indemnity can be increased or decreased on claims made policies in run-off.

The following example shows how this would work for an event occurring in 1979 when the complaint is not made until 1990

1970	1979	1980	1990
Policy starts LOI £1m	Treatment takes place	Policy ends (run-off purchased With LOI £5m)	Complaint made, relating to 1979 treatment (LOI £5m available to answer claim)

 
TEACHING & TRAINING ESTABLISHMENTS
All our policies cover teaching but not the running of a training establishment / college: defined as offering courses and giving out qualifications of competence - separate schools form required for this. Doing workshops, teaching for other schools is covered on an individual’s policy. Students have to take out their own insurance in case they are personally sued for case studies etc. College policy covers College if it is sued as a result of what student does. Teaching is mentioned on leaflets and in policy. Should be stated on certificate if stated on proposal form by client. Reiki practitioners can teach and give certificates for Reiki only on an individual policy. [back]

 

 

 

 

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