4 Insurance Policies Every ABA Agency Needs
Due to the nature of servicing ABA clients, your agency faces an array of liability risks. For example, front-of-line staff can face situations where they may be physically injured. Furthermore, staff who operate vehicles present additional risks to the company when they are driving on company time.
You may have wondered what you can do to mitigate against operational risks you face on a daily basis. One of the best ways to mitigate risk is to make sure your insurance coverage is designed to fit your unique set of needs.
But at the end of the day, the coverage you need is determined by how much risk you’re willing to accept. That said, here are 4 insurance policies every ABA agency should consider.
1. Workers’ Compensation
Of every line of business, workers’ compensation is the largest cost driver for the ABA industry. It is considered “no-fault” coverage, meaning the policy covers any injury or disease caused to employees on the job, no matter how much training they have received from their employer. Workers’ compensation insurance is also statutory, which means your coverage is the same across all carriers.
An important point to note about workers’ comp is that rates fluctuate based on your prior loss history, the size of your agency, and any debits and credits the underwriters are willing to provide. Your rates are also based on payroll, so as your company grows, your premium will increase accordingly.
2. Professional Liability Insurance
Professional liability insurance is a must-have for ABA practitioners who provide professional services to clients. It is defined as a risk brought about from incorrect actions performed while providing professional care.
You can mitigate this risk by broadly defining your services when setting up professional liability coverage. This will increase your chances of being covered should an issue come up.
3. General Liability Insurance
General liability insurance covers bodily injury and property damage that comes from your operations or employees. It also covers personal and false advertising stemming from false arrests, libel/slander, or information from IEPs, client records, and blogs.
General liability doesn’t cover your employees. Instead, it covers those harmed by your employees. If a parent or teacher were to accuse one of your staff members of injuring their child, general liability insurance would have them covered.
4. Automobile Liability Insurance
Due to the high volume of driving that takes place within the ABA industry, it is highly recommended that you consider a comprehensive automobile liability insurance plan. Whether you’re dealing with company vehicles or vehicles owned by your employees, automobiles are liabilities covered by your business when they are used for your business’ operations.
In some cases, the risks from driving on company time can be avoided. This strategy can be effective for ABA agencies with employees that work out of single locations. However, we won’t go into detail about this here because it was covered in an earlier post, ‘Employee Driving Risks & Your ABA Agency.’
If you ever needed to file a claim, automobile coverage is applied on an excess basis. Often your employee’s auto insurance plan is first one to pay for a claim. If the employee’s plan isn’t able to cover the damages, your company’s policy typically covers the remaining balance.
If you own an agency or plan on starting one, it is highly recommended that you explore your options when looking for an insurance broker. Finding an expert you can trust that knows your industry is an important part of successfully managing your ABA business. The expert you choose should be able to advise you on how to minimize the risks specific to your operations. And, they should consult with you on which lines you should consider given your tolerance for risk.
Dan Law is President of Liberty Behavioral Health. He has implemented effective ABA agency risk management strategies for over 14 years. If you are interested in learning more about workers’ comp, professional or general liability, or automobile liability insurance, feel free to email your questions to firstname.lastname@example.org.