Endorsement MPL209 (11/04) describes coverage for allegations of “false imprisonment” (when a patient is involuntarily hospitalized because he or she is a danger to self or to others).
Endorsement MPL208 (11/04) provides limited indemnity coverage for allegations of sexual misconduct. Frequent questions on MPL208, the sexual misconduct sublimit, are answered below.
Endorsement MPL208 Q&A:
Use of a sexual misconduct indemnity sublimit has become an industry standard for mental health professionals, including psychiatrists.
No. This endorsement is attached to each psychiatrist only (varies by state).
The $25,000 sublimit applies only to settlements and judgments. Defense costs are still outside the limits of liability.
Under some policy forms, particularly carriers with limited experience in mental health liability, sexual misconduct liability has an absolute exclusion or defense only. Under such forms, there is no coverage for payment of settlements or judgments for sexual misconduct allegations—any physician who had a settlement or judgment would be required to pay it out of pocket. Because of the unique application of the “transference phenomenon” in mental health, all allegations (whether professional negligence in mishandling the transference phenomenon or claims of sexual misconduct) are subject to the sublimit for any damages that are awarded.
