We are pleased to announce a Professional Liability Insurance Program.

The Reflexology Association of Canada has partnered with Pottruff & Smith Insurance Brokers Inc. to introduce a new insurance program available exclusively to RAC members: Medical Malpractice Liability Insurance - protect your practice, your livelihood and get peace of mind with coverage for legal defence costs and any judgments that could be awarded against you in the event of alleged or actual negligence causing injury to clients as a result of Reflexology and massage therapy treatments rendered by you.

Medical Malpractice Liability Insurance Program (refer to policy for full coverage details)

Program Features:

• $1,000,000 limit each claim/annual aggregate (bodily injury)
• Nil Deductible
• Claims Made wording
• Covers claims arising from the treatment of Reflexology or massage therapy (for members holding an R.M.T. designation or its equivalent) rendered in
• Canada by registered Reflexology practitioners
• Retroactive Date included where necessary, back to the date that the member first certified to practice
• Annual Policy - $125 premium, plus provincial taxes, where applicable

Program Benefits:

• Peace of mind while practising your profession
• Legal defence costs fully paid for in event of a claim against you alleging professional negligence
• Personal protection against potential bankruptcy or financial peril as a result of an uninsured claim
• Ability to work in locations or for others where proof of insurance is required

This important insurance benefit protects you against claims for bodily injury resulting from the rendering or failure to render medical services (“Medical Malpractice”), specifically Reflexology, and Massage Therapy (see above for details). Medical Malpractice insurance is also referred to as Professional Liability or Errors & Omissions Liability.

The coverage takes effect for members who normally renew in January, on January 1, 2003, and, for members renewing or joining in subsequent months, on the first day of that month (please note that continuing coverage is contingent upon receipt of the completed insurance application and enclosed with this mailing, and your payment, by January 31, 2003, otherwise all coverage will cease). Since your membership package now includes this valuable member benefit, this coverage is linked to your membership privileges. In order to receive the lowest rates possible, the program insurer offers the coverage on a mandatory basis only (with certain exceptions: see below for details). Payment for your membership must include the insurance premium, plus taxes, applicable.

Temporary Exception to Mandatory Participation in the Insurance Program:

Members who already carry Malpractice insurance are exempt for the balance of the existing policy term. Coincidental with the current policy expiry date, it is required that the member enroll in the RAC insurance program, and in no event later than the member’s anniversary date in 2004.

Additionally, optional coverage is available for Commercial General Liability insurance. This policy provides coverage for claims for bodily injury or property damage resulting from the operation of your business i.e. slip and falls, or damage caused by you to rented premises. This coverage is very important, and should not be overlooked in the individual assessment of each member’s insurance requirements. There are instances where both the mandatory malpractice liability coverage or the optional General Liability coverage could be called on to respond, or grey areas where the General Liability policy will apply, such as injuries caused to clients by the practitioner’s equipment i.e. massage table collapse resulting in injury to a client. Note: unless the member is employed by a medical clinic or other business where the member is actually an “employee”, General Liability coverage would not be applicable to protect the member other than through the purchase of his or her own policy. For home based members, many home insurance policies cannot be extended to cover complementary health practitioners. The RAC recommends the purchase of this policy whether the member practices out of home or in a clinic/office environment.

Optional Commercial General Liability Insurance Program (refer to policy for full details)

Program Features:

• $1,000,000 limit each occurrence (bodily injury or property damage claims)
• $1,000,000 Personal Injury and Advertising Liability
• $1,000,000 Non-Owned Automobile Liability
• $ 100,000 Tenant’s Legal Liability
• $ 2,500 Medical Payments
• $ 500 Deductible (property damage claims only)
• “Occurrence” wording
• Covers business operations of a member Reflexologist and of the member’s employees
• Annual Policy - $70 premium, plus provincial taxes, where applicable

Program Benefits:

• Peace of mind while practising your profession
• Legal defence costs fully paid for in event of a claim against you alleging business negligence
• Personal protection against potential bankruptcy or financial peril as a result of an uninsured claim
• Ability for the member to lease premises where the landlord requires insurance
• Protection for your employees

Please take the time to read the attached brochure of the enclosures with this notice for more details of this program, and for contact information. To enroll, simply complete fully the attached insurance application with your membership application form (both are in the Membership Section of this site) and return it promptly to the R.A.C. office, along with your payment payable to the Reflexology Association of Canada.

Thank you for renewing your membership in the Reflexology Association of Canada, along with your enrollment in the new liability insurance program(s).

Yours truly,

Carol Humphries Geoff Haddock, B.A., C.R.M., C.C.I.B.
Executive Director R.A.C. Insurance Program Administrator
Reflexology Association of Canada Pottruff & Smith Insurance Brokers Inc.

8001 Weston Road, Suite 300
Woodbridge, Ontario
L4L 9C8
P.O. Box 83008
Edmonton, Alberta
T5T 6S1

2003-2004 LIABILITY INSURANCE PROGRAM

Frequently Asked Questions

Why is the insurance program mandatory for members?

Many professional associations across North America currently include liability insurance as part of their membership benefit packages, and in many cases, participation is mandatory. The reasons for mandatory participation are as follows:

• To obtain the best possible insurance rates: program insurers can only provide the best rates possible where participation levels are clearly established through mandatory participation; members seeking individually purchased coverage would often see higher premiums
• Professional associations have not only an obligation to represent their membership in the most favourable manner possible, but to play a role in protecting the public from the possibility of malfeasance of members. Further, health care providers have a professional responsibility to provide the best health care services possible to their clientele, to protect clientele from harm, or in the event of harm, to provide clientele with a method of seeking compensation in the event of the health practitioner’s negligence
• The profile and acceptance of complementary and alternative health and wellness providers in North America is increasing rapidly in the eyes of the public. Similarly, the risks of potential harm or perception of harm to patients is expected to increase, and the incidence of litigation as a means for redress as a result of injury is rising
• Many health industry employers are asking health practitioners to produce evidence of liability insurance and this trend is increasing; similarly, local government agencies often ask for evidence of insurance carried

What if I carry my own malpractice insurance already?

There is a provision for members who already carry malpractice insurance to continue their current policies through to expiry, but in no event beyond January 1, 2004, one year from now. The enclosed application form includes a section that requires a copy of the declaration page of the existing policy or certificate of insurance to be attached to the application as evidence that insurance is already in force. In these cases, the RAC office will record this information for follow up upon expiry of the existing policy to ensure that enrollment in the endorsed program starts at that point. All members must be included under the program after their current insurance expires so that the difficult task of ongoing monitoring and verification of insurance in force does not have to continue indefinitely.

How do the rates under this program compare with other association programs?

Group program rates for liability insurance can vary widely and depend on many factors, such as the scope of coverage and limits offered, and the claims experience of the group. Additionally, rates cannot be fairly compared at any one point in time due to ongoing changes in the insurance marketplace and timing of rate increases: North American property casualty insurers are aggressively adjusting pricing in order to return to underwriting profitability, and double digit rate increases are expected to continue their upward trend throughout 2003 - group programs are not exempt from this increase. What is known is that the R.A.C.’s group insurance program rates are extremely competitive when compared to other similar programs, and the current rates are locked in for 2003.

When does my coverage start?

The coverage starts at 12:01 am on January 1, 2003, expiring January 1, 2022 for members renewing their membership and enrolling in the insurance program. For members renewing their membership in subsequent months, the premium is adjusted accordingly and the expiry date would remain as January 1, 2004.

What is a “Claims Made” policy?

There are two types of Liability insurance policies: “Occurrence” basis and “Claims Made” basis.

Coverage under an “Occurrence” policy is triggered by an event or incident (“occurrence”) - in the case of a health care practitioner, when treatment is rendered or failed to be rendered, which results in an injury, sickness or death. The date of the occurrence determines which policy, if any, in force will respond to any subsequent claim, regardless of when the claim (i.e. lawsuit) is made against the health care practitioner.

Coverage under a “Claims Made” policy is triggered by when a claim is made (i.e. lawsuit) against the practitioner and reported to the insurer, not by when the event which caused an injury, sickness or death took place.

Why was the Claims Made policy selected as the program policy, rather than the Occurrence policy?

Simply put, it is important to maintain a Claims Made policy where the possibility exists of members having carried a Claims Made policy in the past. Replacing a Claims Made policy with an Occurrence policy leaves the possibility of a coverage gap for the practitioner where a claim is made after the Claims Made policy is no longer in force. It is known that some RAC members currently carry Claims Made policies. Provisions have been made under the program policy to extend coverage back to when the member was first certified to practice, as declared in the insurance application. Therefore, claims brought forward based on an event. which occurred in the past, but which was not known to have occurred, would be covered under the new program policy. Additionally, the program policy wording provides for coverage beyond expiry for members who will have retired, become disabled or in event of death.

Can I buy additional liability insurance to protect my business operations?

Yes. Commercial General Liability insurance is available on an optional basis to provide regular business liability protection, such as for slip and fall claims at your home business or at clinic or office premises, or for damage to rented premises, or for injury caused by health-related products you sell. Please refer to the attached insurance application for details.

Who is the insurance company offering the policy?

Lombard Canada, a wholly owned subsidiary of Fairfax Holdings Limited (FFH on the TSX). With annual written premiums in excess of $500 million, Lombard is one of the largest group program underwriters in Canada. A.M. Best Rating is A- (Excellent). Pottruff & Smith Insurance Brokers Inc. is the insurance broker responsible for program administration, and is endorsed by many professional associations across Canada, in health care, as well as many other disciplines.

Why does the association charge an administration fee in addition to the premium?

In order to keep the costs of the policy as low as possible, the association has agreed to handle a substantial part of the processing and handling, including postage and paper costs, to administer this program. These costs have to be offset either through membership levies or directly against the insurance program. Applying an administration charge against the insurance program is the fairest way to do this.

When will I receive evidence that I am insured?

A Certificate of Insurance and coverage summary outlining the key coverage components will be mailed to members approximately six weeks after members return their applications and payment for the insurance. The time delay is due to the fact that reporting of participating members takes place following each month end. However, coverage is in effect regardless of receipt of the insurance documents by month end of the current month the member’s membership renewal is due.

Who do I call if I have any questions about the insurance program?

If your questions are not related to the actual policy coverage, please contact the Reflexology Association of Canada office toll-free at 1-877-722-3338, or locally at 780-442-4346.

Technical questions can be directed to Pottruff & Smith Insurance Brokers Inc. - contact Geoff Haddock (ext. 349) or Charlene Barnes (ext. 367) toll-free at 1-800-263-2369.

Your next step?

Apply for membership in RAC and for Professional or General Insurance through the Membership section of this site. Thanks to our friends at: Embodiedresilience.ca, Forest City (party tent rental London Ontario) and Our Therapist (ADHD Therapy)