April 2008

CBS acquires new brokerage firm, expands services

by Timothy Feuling, CBS President

According to customer service expert Robert Bacal, "While insurance is a price competitive arena, trust and customer service play huge roles in attracting and retaining customers."

For the past decade and a half, Chiropractic Benefit Services (CBS) has earned a reputation for the highest level of customer service available from any insurance program. We're accessible, responsive, and supportive.

Starting this month, we're taking CBS to the next level and offering even more services to all doctors of chiropractic, including additional financial and insurance programs and a wider variety of payment plans. The improvements are being made possible by our switch to a larger, more progressive brokerage company, Lapre Scali & Company Insurance Services. The underwriting manager for the Lapre Scali CBS program is Denise Hockman, who has worked with CBS for more than five years and understands fully the special needs of doctors of chiropractic.

Although our previous broker did a great job, the fact that we are growing so rapidly gave us the impetus to transfer account management to a firm that could offer an even wider range of services and products.

Naturally, we're continuing our long-term relationship with our underwriter, CNA, which has been a leader in the insurance industry for more than a century. CNA Insurance Company -- the 7th largest US commercial insurer and the 14th largest US property & casualty insurer -- provides insurance protection to more than a million businesses and professionals in America and internationally, with assets of close to $60 billion. It is "A"-rated for financial strength by AM Best, and also enjoys strong ratings from the other independent rating agencies. CBS is the only chiropractic insurance program underwritten by CNA, and our members benefit greatly from the financial strength and stability of this insurance giant.

Although we will be working with a new brokerage firm, the type and quality of policy CBS offers will not change. Almost all insurance advisors now recommend claims‑made policies for health care professionals. In fact, occurrence insurance for this type of liability coverage is rarely offered today because of the difficulty of projecting long‑term claims costs. In addition, they have serious disadvantages for doctors. An article in the Los Angeles County Bar Association newsletter warned: "Occurrence policies mislead insureds into believing that they have adequate protection 'forevermore', when in fact the limits of liability they buy today are likely to be inadequate for five or ten years from now."

Nor will we be eliminating any of the coverage now offered, including defense costs for accusations of sexual misconduct, professional board disputes and HIPAA violations as well as coverage for employees other than DCs, first aid, vicarious liability, corporate coverage, etc. So many other insurance policies leave doctors vulnerable to many of the risks they face every day.

Just as important as what a policy covers is what it excludes. Among the most common exclusions are for lawsuits resulting from "not‑for‑fee" care, that is, free care provided for staff or others. There are even policies being marketed to DCs that have specific exclusions for infants under the age of 14 days, patients who are sent to collections or involved in disputes over fees, and pregnant women beyond their first trimester. Each of these exclusions lessens the value of a malpractice insurance policy and can leave you vulnerable to lawsuits. As always, none of these situations is excluded from CBS coverage.

Some of the other factors that will not change involve:

Deductibles: Some policies offer policies with deductibles of $5,000 or more. While there's nothing intrinsically wrong with a policy that has a deductible, it can quickly erase any savings you enjoyed on the premiums, and end up costing you much more in the long run. CBS does not impose a high deductible.

Quality of defense: Another reason CBS has grown so rapidly is the high quality of defense it provides. Ask around and you will no doubt hear tales of insurance companies that skimped on the defense they provide in order to save money, or who did not even have access to lawyers experienced in defending chiropractors. CBS does everything it can to help you prevent lawsuits in the first place but, if you are sued, we provide the highest quality legal assistance and defense.

Consent-to-settle clause: Speaking of being sued, did you know that unless a policy specifically contains a consent‑to‑settle clause, the insurance company can make the decision whether to fight the charges in court or to force you to settle out of court, even if it means note clearing your name? Many insurance companies are electing to reduce their costs by refusing to defend doctors even when they're completely innocent. "Rupp's Insurance & Risk Management Glossary" includes the statement: "Since a settlement can affect the reputation and earning ability of the insured, this type of clause is an important consideration in selecting a policy."

Hammer clause: Some consent-to-settle clauses also contain what's known as a "hammer clause," which is a way to coerce you into accepting a settlement offer. With a hammer clause, if you refuse the settlement offer recommend by the insurer, the insurer's liability is limited to the amount of the recommended settlement offer. So, if your insurance company urges you to accept a ridiculous out-of-court settlement offer and you refuse, that's all they'll be liable for! CBS has been warning doctors about that kind of clause for years!

Price and value: Naturally, price considerations are also an important reason why so many doctors are choosing CBS. Obviously, no one should pick a "bargain" policy based simply on its low premium. "The first rule of choosing professional liability insurance is to forget about the price.... This insurance is protecting your very way of life and means of support, so many other factors are more important," stated James Rooney in an article titled, "Choosing Professional Liability Insurance." Still, DCs are adept at comparing policies and choosing the one that is the best value: CBS!

Dedication to chiropractic: There are so many other less tangible and measurable factors involved in choosing an insurance company, such as the company's dedication to chiropractic and its willingness to "give back" to the profession. CBS won many admirers by providing substantial financial support of various organizations and efforts focusing on chiropractic research, political action and advocacy, and public education. It has provided scholarships to chiropractic college seniors in order to help graduating students make the transition to practice.

We're looking forward to entering a "new era" as we strengthen our management capacity with our new brokerage firm, and expanding to protect even more doctors of chiropractic with exceptional malpractice protection.

(Timothy J. Feuling is president of Chiropractic Benefit Services (CBS) and assists doctors in maximizing their practices through the proper choice of insurance and related services. Mr. Feuling is also available for speaking engagements at state conventions and other chiropractic events. Doctors may contact him with questions, comments, and requests for insurance quotes at 2950 N. Dobson Rd. Ste. 1, Chandler, AZ 85224, by phone at 800 883 0412 or by e-mail: feuling@cbsmalpractice.com).