Understanding the Claim Process: Part I License/Certification Scrutiny

Understanding the Claim Process: Part I License/Certification Scrutiny

Understanding the complexities of legal proceedings can be rather difficult. A lawsuit is something we hope to never experience, but as an expert in fitness who is compensated for your professional services, it’s important to know you are liable for the services you provide and are held accountable to the credentials of your license or certification.

This series of articles will give you a basic knowledge of the legal process involved with a claim to help make understanding the claim process a little easier and to help you approach it with confidence.

Part I: License/Certification Scrutiny

Your professional credentials are hard-earned and vital to your livelihood. But when you started your career in the fitness profession, you may not have stopped to think about what happens when―or even how—your credentials can be threatened and what it might mean for your continued work in the business.

As a professional, you should know that anyone has the right to make a complaint to your state’s Department of Regulation (DPR)―the body that has the power to revoke or censure your license/certification. An attack on your license can come from any one of the following sources:

• A Disgruntled Client. Often, if a dissatisfied client chooses to sue you, their counsel will file a complaint with the DPR asking it to investigate your license/certification. Sometimes, the purpose of filing an action against your license/certification is a way to gain information so that a lawsuit can be filed against you at a later time.
• State Agencies. In the event you default on a student loan or fail to pay your taxes, the taxing body (income, state or federal) will report you to the DPR. They will then take action against your license/certification for failing to pay your obligations.
• Criminal Activity. If you are found to have misappropriated drugs, your employer is obligated to report the activity to the DPR. There is no requirement that you be convicted of a crime for your license/certification to be revoked or restricted for drug misappropriation.
• Substance Abuse. In the event of substance abuse on your part, such alleged abuse can be reported to the DPR, who will investigate the activity. The abuse doesn’t have to have affected your work for an investigation to ensue and your license/certification to be restricted.

What to Do if a Complaint is Filed

If you are notified that your license/certification is under scrutiny by the DPR, it’s imperative that you retain a competent attorney who is familiar with regulatory body statutes to ensure your license/certification is fully protected. If you’re insured through Lockton Affinity, your insurance works on your behalf to select an attorney to represent you (we’ll discuss attorney representation in the next article in this series).

Your policy also automatically provides coverage for regulatory investigation defense. This means you will receive reimbursement—up to $5,000 per incident and no more than $10,000 per annual policy period— for fees, costs and expenses you incur that are related to any investigation or disciplinary action by the regulatory body (the DPR) associated with your professional services license or certification. This coverage limit is provided as supplementary coverage and does not reduce the limit of liability of your policy.

It’s important to know that your license or certification can be affected by more than just dealings with your clients. Buying your own Professional Liability Insurance gives you protection in that moment when your professional status is called into question.

Our article series on understanding the legal process will include these informative topics:

Part 2: Summons, complaints & subpoenas and attorney representation

Part 3: What is the discovery process?

Part 4: What to expect with giving a deposition

Part 5: What to expect in trial preparation and testimony