EXHIBIT 10.26

                      DEDUCTIBLE LIABILITY INSURANCE POLICY

                                  DECLARATIONS

ITEM 1.  POLICY NO.:      NGB 0133600-00

ITEM 2.  COMPANY:         RELIANCE INSURANCE COMPANY OF ILLINOIS

ITEM 3.  INSURED:         THE VINCAM GROUP, INC. ET AL

ITEM 4.  INCEPTION DATE:  12/31/96
         EXPIRATION DATE: 12/31/99

ITEM 5.  PREMIUM:    $4,422,600. Deposit Premium for the 12/31/96-97 policy 
                     period. (See Item 1-Premium)

ITEM 6.  COVERED POLICIES:


                         POLICY      POLICY     POLICY     POLICY     DEDUCTIBLE
  POLICY     INSURER    COVERAGE      TYPE      NUMBER     PERIOD       AMOUNT
  ------     -------    --------     ------     ------     ------     ----------
  
             RIC        W/C & E.L.                 *          *        $2000
                                                                       EACH &
                                                                       EVERY
                                                                       MEDICAL
                                                                       ONLY
                                                                       CLAIM

*  Schedule of Policies and Effective Dates shall be maintained on file with 
the Company and this Declarations Page shall be updated by endorsement on a
quarterly basis.

ITEM 7.  COMPANY'S LIMITS OF LIABILITY:  A.   For each Covered Policies:

                                              $250,000 accident/each occurrence

ITEM 8.  SELF-INSURED RETENTION:         A.   For each Covered Policies:

                                              $2,000. each & every Medical only
                                              claim

                                        1

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                                    POLICY

In Consideration of the payment of the premium and in reliance upon the
statements made to the Company, and subject to the Self-Insured Retention and
the Limits of Liability, and the limitations, exclusions, terms and conditions
of this Policy, the Company agrees with the Insured as follows:

I.    DEFINITIONS
      -----------

       A.   INSURED
            -------

            "Insured" means the Insureds designated in the Declarations.

       B.   COMPANY
            -------

            "Company" means Reliance Insurance Company of Illinois.

       C.   INSURER
            -------

            "Insurer" means an insurance company that issued the Covered
            Policies as listed in Item 6 of the Declarations.

       D.   POLICY
            ------

            "Policy" means this deductible liability insurance policy.

       E.   POLICY PERIOD
            -------------

            "Policy Period" means the period from the Inception date of this
            Policy through the Expiration date as set forth in Item 4 of the
            Declarations, or the Policy's earlier termination date, if any.

       F.   COVERED POLICIES
            ----------------

            "Covered Policies" means only those insurance policies issued to an
            Insured by an Insurer as specified in Item 6 of the Declarations.

       G.   DEDUCTIBLE AMOUNTS
            ------------------

            "Deductible Amounts" means any amounts actually paid by an Insurer
            with respect to a claim under Covered Policies and for which an
            Insured is responsible for reimbursing the Insurer under the terms
            of any deductible provision or endorsement of a Covered Policies.
            Such Deductible Amounts may include but are not limited to damages,
            benefits, losses, or costs, fees and expenses for investigation,
            negotiation,

                                        2

<PAGE>

            settlement or defense. "Deductible Amounts" shall not include any
            premium taxes, surcharges or assessments arising out of or
            attributable to an Insured's obligations to reimburse an Insurer
            whether the Insured is required to pay the Insurer for such premium
            taxes, surcharges or assessments under the Covered Policy or
            otherwise.

II.   INSURING AGREEMENTS
      -------------------

       A.   COVERAGE
            --------

            The Company, subject to the Self-Insured Retention and as described
            in E, below will pay on behalf of the Insured all Deductible Amounts
            which the Insured shall become obligated to pay up to the Limits of
            Liability as described in D, below to an Insurer under a Covered
            Policies listed in Item 6 of the Declarations.

       B.   NO DUTY TO DEFEND
            -----------------

            The Company shall have no duty to investigate or defend any claim,
            suit or proceeding commenced against the Insured under this Policy
            or any Covered Policies. The Company shall have the right to
            associate, at its own expense, with the Insured in the defense or
            investigation of any claim, suit or proceeding involving the Covered
            Policies listed in Item 6 of the Declarations.

       C.   PAYMENTS TO INSURERS LISTED IN DECLARATIONS
            -------------------------------------------

            All Deductible Amounts payable under this Policy shall be paid on
            behalf of the Insured directly to the Insurer on the Covered Policy
            listed in Item 6 of the Declarations. The payment of such Deductible
            amounts shall be made in satisfaction of the Insured's obligations
            to such Insurer under the Covered Policies. The Insured irrevocably
            waives any rights to such payments.

       D.   LIMITS OF LIABILITY
            -------------------

            The amount stated in Item 7.A. for each Covered Policies is the most
            the Company will pay for Deductible Amounts under each Covered
            Policies of each accident occurrence.

       E.   SELF-INSURED RETENTION
            ----------------------

            The Company will not pay any Deductible Amounts within the
            Self-Insured Retention stated in Item 8 of the declarations for each
            Covered Policies.

                                        3

<PAGE>

III.  DEDUCTIBLE LOSS FUND
      --------------------

      On the effective date of this Agreement the Reinsurance Company will
      establish an account with the Company's designated Third Party
      Administrator (TPA) on behalf of the Insured to fund Losses in the amount
      of $4,200,000. for payment of losses within the Deductible Amounts. The
      Company shall adjust the required level of the Deductible Loss Fund in
      accordance with Item l-Premium.

IV.   EXCLUSIONS
      ----------

      The Insurance under this Policy covers only those Deductible Amounts which
      the Insured shall become obligated to pay to an Insurer under the
      deductible endorsement to the Covered Policies listed in Item 6 of the
      Declarations. Any Deductible Amounts not covered or excluded under the
      Covered Policies shall not be covered under this Policy and the Company
      shall have no liability to pay such Deductible Amounts on behalf of the
      Insured.

V.    CONDITIONS
      ----------

      A. NOTICE OF CLAIM 
         ----------------

         The Insured shall provide the Company with a copy of any and all
         notices and information on claims made under the Covered Policies. The
         Insured shall provide the Company with a copy of any such notices or
         information at the same time that it provides such notices or
         information to an Insurer. The Insured shall deemed to have comply with
         this provision once the claim is reported to the Third Party
         Administrator.

         In addition, the Insured shall notify the Company in writing as soon as
         practicable of any claim for reimbursement of any amounts within the
         deductible provision by the Insurer under a Covered Policy. The notice
         shall include: (1) the name of the Insurer, (2) the amount(s) sought by
         the Insurer, (3) the amount(s) paid or reserved by the Insurer for such
         claim, suit or proceeding, including indemnities, medical expenses or
         benefits, and allocated loss adjustment expense, (4) the amount of the
         deductible, if any, applicable to such claim, suit or proceeding, (5)
         the Insurer's claim number, (6) the claimant's name and address, (7)
         the date of accident or occurrence that is the basis for such claim,
         suit or proceeding and (8) any other relevant information requested by
         the Company. The Insured shall cooperate with the Company in the
         investigation and settlement of any claim under this Policy.

                                        4

<PAGE>

       B.   SUNSET
            ------

            The Company shall have no obligation to pay Deductible Amounts on
            behalf of the Insured unless a claim has been submitted by the
            Insured to the Company in accordance with V.A above, within seven
            (7) years from the last day of the Policy Period.

       C.   COMMUTATION
            -----------

            The Insured upon 30 days prior written notice to the Company, may
            elect at any time to assume all the Company's liabilities arising
            from accidents or occurrences up to the first $250,000. in
            consideration of a payment as mutually agreed between the Company
            and Insured (the "Commutation"). On the effective date of the
            Commutation, the Company shall pay Insured 100% of the total amount
            of the Deductible Loss Fund established under this contract, less
            the total of all amounts paid by the Company as the Ultimate Net
            Loss under the contract up to $250,000. Each accident or occurrence
            and contemporaneously with any such payment, the Insured shall
            deliver to the Company a release, in form and substance acceptable
            to the Company in their sole discretion, duly authorized and
            executed, releasing the Company from any further or continuing
            liability under this Policy for losses not exceeding $250,000.for
            each accident or occurrence.

       D.   FALSE OF FRAUDULENT CLAIMS
            --------------------------

            If the Insured submits any claim that the Insured knows is false or
            fraudulent, in whole or part, as regards amount of otherwise, this
            policy shall be void and all insurance under this Policy shall be
            forfeited.

       E.   SUBROGATION
            -----------

            The Company shall be subrogated to the rights of the insured to
            recover from any third party including any Deductible Amounts paid
            on behalf of the Insured to such third party liable for such
            Deductible amounts. The Insured hereby assigns its rights to
            participate in any recoveries by an Insurer. The Insured shall
            cooperate fully with the Company to recover such Deductible Amounts.

       F.   OTHER INSURANCE
            ---------------

            Except with respect to Covered Policies the insurance under this
            Policy shall be excess insurance over and above any other applicable
            insurance available to the Insured, whether such other insurance is
            stated to be primary, contributing, excess, contingent or otherwise
            and whether such other insurance is valid and collectible.

                                        5

<PAGE>

       G.   BANKRUPTCY OR INSOLVENCY OF INSURED
            -----------------------------------

            Bankruptcy or insolvency of the Insured shall not relieve the
            Company of any of its obligations hereunder.

       H.   ACTION AGAINST THE COMPANY
            --------------------------

            No action shall lie against the Company unless, as a condition
            precedent thereto the Insured shall have fully complied with all the
            terms and conditions of this Policy. In addition, no action shall
            lie against the Company until the amount of the Insured's obligation
            to pay Deductible Amounts under the Covered Policies listed in Item
            6 of the Declarations shall have been determined finally and payment
            made by an Insurer under a Covered Policy.

            Nothing contained in this Policy shall give any person or entity any
            right to join the Company as a co-defendant in any action against
            the Insured to determine the Insured's liability to such person or
            organization.

       I.   PREMIUM AND PAYMENT TERMS
            -------------------------

BASIS FOR PREMIUM:            [*]- estimated payroll 
-----------------                  12/31/96-97

                              [*]- estimated payroll 
                                   12/31/97-98

                              [*]- estimated payroll 
                                   12/31/98-99



POLICY PERIOD:                Three years
-------------

ADJUSTABLE FACTORS:           [*]- Adjustable rate for amount of payroll in
-------------------                excess of estimated payroll for each of the
                                   three years.
                              [*]- Adjustable rate for amount of payroll less
                                   than estimated payroll for each of the three
                                   years.

PRESENT ACTUAL MANUAL RATE:   [*]
--------------------------
AVERAGE MANUAL RATE ADJUSTABLE FACTOR:
--------------------------------------
       [*]

--------------
* Confidential portions omitted and filed separately with the Securities and
  Exchange Commission.

                                        6

<PAGE>


DEPOSIT PREMIUM:
----------------

       Deposit Premium shall be $ 4,422,600. for 12/31/96-97 under this policy
number. Deposit Premium for 12/31/97-98 and 12/31/98-99 shall be determined by
the Company.

       J.   AUDIT   
            -----

            The Company may examine and audit the Insured's books and records at
            any time during the Policy Period or within five years after the
            last day of the Policy Period or until all timely and properly
            reported claims are paid under this Policy, whichever is alter, on
            any matter relating to the insurance provided under the Policy. The
            Insured shall cooperate fully with the Company during any audit, and
            shall provide the Company with any information or documents
            requested by the Company that relates to the rights and obligations
            of the insured and the Company under this Policy.

       K.   CANCELLATION
            ------------

            This Policy may be canceled by the Company by mailing to the Insured
            written notice of cancellation. The notice of cancellation must be
            mailed to the Insured not less than ten (10) days before the
            effective date of cancellation; but only for the failure of the
            Insured to pay the premium when due. In the event this policy is
            canceled for non-payment of premium, all the Covered Policies will
            be canceled simultaneously.

            If the Policy is canceled earned premium shall be computed on a
            short rate basis. Adjustment of the premium may be made at the time
            this Policy is canceled or as soon thereafter as practicable.

            If this Policy is canceled, the liability of the Company to pay
            Deductible Amounts on behalf of the Insured shall be cut-off as of
            the effective date of such cancellation. In such event, the Company
            shall have no obligation to pay Deductible Amounts on behalf of the
            Insured for any claims that were not timely, properly and fully
            reported to the Company before the effective date of cancellation.
            In addition, the Company shall be liable only for those Deductible
            Amounts relating to losses or expenses actually paid by the Company
            under Covered Policies before the effective date of cancellation of
            this Policy. Contingent or pending losses or expenses under a
            Covered Policies shall not be covered and the Company shall have no
            liability for any Deductible Amounts payable on behalf of the
            Insured to the Insurer for such losses or expenses.

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<PAGE>

       L.   RENEWAL OF POLICY
            -----------------

            The Company may renew this Policy by an endorsement issued to form a
            part hereof.

       M.   NAMED INSURED
            -------------

            The Insured named in the Declarations is the only Insured under this
            Policy. No other person or entity shall have any rights as an
            Insured under this Policy.

       N.   ASSIGNMENT
            ----------

            This Policy shall be void if assigned or transferred without the
            prior written consent of the Company.

       O.   CHANGES
            -------

            This Policy may not be changed, amended or otherwise modified except
            through a validly issued written endorsement executed by the
            Company. Information provided to an agent of the Company shall not
            result in a change, amendment or other modification to any part of
            this Policy or stop the company from asserting any right under the
            Policy or relieve the Insured of any duty under this Policy.

       P.   ARBITRATION
            -----------

            If any dispute arises between the Insured and the Company either
            before or after termination of this Policy with reference to the
            interpretation of this Policy or the rights of either party under
            this Policy, the dispute shall be referred to arbitration. The
            arbitration will involve three arbitrators, one to be selected by
            each party and the third by the two parties selected. If either
            party refuses or neglects to appoint an arbitrator within thirty
            (30) days after the receipt of written notice from the other party
            requesting it to do so, the requesting party may nominate two
            arbitrators who shall select the third arbitrator. In the event the
            two arbitrators do not agree on the selection of the third
            arbitrator shall be selected pursuant to the commercial arbitration
            rules of the American Arbitration Association. The arbitrators shall
            be officials or former officials of other insurance of reinsurance
            companies. The arbitration shall take place in the State of New York
            and the arbitration proceedings shall be governed by the rules of
            the American Arbitration Association and the New York Arbitration
            Law. The arbitrators shall consider this Policy honorable engagement
            rather than merely a legal obligation; they are relieved of all
            judicial formalities and may abstain from following the strict rules
            of the law; provided, however, that the arbitrators may not render
            any award of punitive or exemplary damages. The decision of a
            majority of the arbitrators shall be final and binding on

                                        8

<PAGE>

            both the Insured and the Company and judgment upon the award
            rendered by the arbitrators may be entered into any court having
            jurisdiction thereof. The expense of the arbitrators and of the
            arbitration shall be equally divided between the Insured and the
            Company. Arbitration is the sole remedy for disputes arising under
            this Policy. The arbitrators are relieved of any judicial
            formalities or rules of law and shall be bound to the standards and
            practices of the insurance business and the intent of this Policy.

       Q.   CHOICE OF LAW AND FORUM SELECTION
            ---------------------------------

            This Policy shall be interpreted according to the laws of the State
            of New York. Any claim, suit or proceeding commenced by the Insured
            against the company shall be brought in a state or federal court of
            competent jurisdiction in the State of New York.

Executed this 6th day of January, 1997.

                                    By:     [SIGNATURE]
                                        -----------------------------------
                                        Authorized Company Representative

            Title: Regional First Vice President
                   ------------------------------

                                        9

<PAGE>

(The Attaching Clause need be completed only when this endorsement is issued
subsequent to preparation of the policy.)
                                                                        GU 207
                                                                        (6-78)

                                  ENDORSEMENT


This endorsement, effective on 12/31/96 at 12:01 A.M. standard time, forms a 
part of Policy No. NGB 13-3600-00 of the RELIANCE INSURANCE COMPANY OF ILLINOIS

Issued to

                                              [SIGNATURE]
                                          -------------------------
                                          Authorized Representative


IT IS AGREED THAT ITEM #3, INSURED, IS EXTENDED TO INCLUDE
THE FOLLOWING:

THE VINCAM GROUP, INC.
VINCAM HUMAN RESOURCES, INC.
VINCAM HUMAN RESOURCES, INC. I
VINCAM HUMAN RESOURCES, INC. II
VINCAM HUMAN RESOURCES, INC. III
VINCAM HUMAN RESOURCES, INC. IV
VINCAM HUMAN RESOURCES, INC. V
VINCAM HUMAN RESOURCES, INC. VI
VINCAM HUMAN RESOURCES, INC. XII
VINCAM PRACTICE MANAGEMENT, INC.
AMERICAN PEDIATRIC SYSTEMS, INC.
VINCAM HUMAN RESOURCES OF MICHIGAN, INC.
VINCAM OCCUPATION HEALTH SYSTEMS, INC.
PERSONNEL RESOURCES, INC.
VINCAM INSURANCE, INC.
PSYCH CARE INC.

                                       10