Therapist Liability Insurance

Offering professional advice and counsel to the public can be a rewarding career, but it's not one that comes without risks. Whether you offer therapy, counseling, or psychotherapy, you're especially vulnerable to patient lawsuits for claims of professional negligence and errors that caused some type of harm. You could also be sued by a patient's family member. Having the right kind of liability protection is essential for longevity in this field.

Fortunately, a local independent insurance agent can help you get set up with the right therapist liability insurance. They'll ensure you get matched to the appropriate coverage with limits that make sense for your practice. But first, here's a closer look at therapist liability insurance, what it covers, and more.

What Is Therapist Liability Insurance?

Like medical doctors, attorneys, and architects, individuals who work in the fields of psychology, therapy, and mental health provide professional services that could result in personal harm or financial loss to others. Therapy liability insurance, also called malpractice insurance for therapists, is a type of professional liability insurance designed to protect you from the cost of claims related to your work in therapy or counseling.

It only takes one malpractice lawsuit to derail your career and drain your assets. Psychologist malpractice insurance can help you keep your practice open for years to come. Work together with a local independent insurance agent to get set up with adequate therapist malpractice insurance before you ever start seeing clients.

What Does Therapist Malpractice Insurance Cover?

Therapist malpractice insurance can protect you from many different expenses that can arise following a client's claim of professional errors or negligence on your part. Whether you have individual or group coverage, your counseling insurance policy will typically cover:

If a client claims the advice you gave them in a therapy session caused them a financial loss or even emotional harm, you could be sued. Just one unexpected lawsuit could result in tens of thousands of dollars out of your own pocket if you lack the proper coverage. That's why having enough therapist malpractice insurance is critical.

Claims-Made vs. Occurrence Coverage

When you purchase therapist professional liability insurance, you'll have three main types of coverage to choose from. Here are the key differences between each category.

• Claims-made policies: These only cover claims if your service and the patient's claim were rendered while the policy was in force. Tail coverage, which extends protection for a set period, such as a few years, after the policy's end date, may also be included in your policy.
• Occurrence policies: These cover claims if you offered a service while the policy was in force, regardless of when the patient's claim is filed.
• Modified occurrence policies: These policies, also called tail coverage, extend your protection after its term ends. Once that coverage expires, you can buy unlimited tail coverage. When retiring, many therapists use this coverage to protect themselves in case of future claims arising from past services.

For example, with an occurrence policy, if the alleged incident occurred five years ago and you no longer had the policy, the claim would still be covered. But under a claims-made policy, the incident would only be covered if you had the policy five years ago and had continued the coverage to the current date. An independent insurance agent can advise you on which type of therapist liability insurance is right for your practice.

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Who Needs Therapist Liability Insurance?

Any professionals who offer consultation and therapy services to the public must protect themselves against lawsuits that can arise. If improper or inadequate advice is provided to a client, this individual can press charges against you to compensate for the harm they suffer. You likely need therapist liability insurance or malpractice insurance if you work as any of the following:

If your occupation is listed here, ask an independent insurance agent to help you find the right therapist liability insurance.

Common Liability Claims Against Therapists

Therapists, unfortunately, are sued for many different reasons on a regular basis. Being aware of some of the most common claims against therapists can help you prepare yourself from a coverage standpoint.

Therapists are often sued for the following claims:

You'll need to review your specific therapist malpractice insurance policy together with your independent insurance agent to determine which types of claims are covered.

Another Type of Liability Coverage to Consider

Your therapy practice can benefit from having additional liability protection. A general liability insurance policy is a critical aspect of business insurance that can protect you from other types of third-party claims, including those from your patients or clients. The difference between general liability and professional liability is that general liability insurance covers claims arising from third-party bodily injury or personal property damage caused by you or your business.

For example, if a client slipped and fell on your business's steps, they could sue you. In this instance, your general liability insurance would cover the claim because their injury was not due to a professional error or omission from your services. Ask your independent insurance agent about getting your practice equipped with enough general liability coverage to complete your larger business insurance policy.

How Much Does Therapist Liability Insurance Cost?

The cost of therapist malpractice insurance can vary greatly depending on several factors. These often include:

• The specific services you offer
• How many hours you work per week
• The type and amount of coverage you need
• Outstanding claims and claims history

A local independent insurance agent can help you find affordable therapist malpractice insurance in your area.

Save on Professional Liability Insurance

Our independent agents shop around to find you the best coverage.

Request a quote

The Benefits of an Independent Insurance Agent

If you're ready to protect your practice with the right therapist malpractice coverage, no one’s better equipped to help than an independent insurance agent. Independent insurance agents search through multiple carriers to find providers who sell therapist professional liability insurance, deliver quotes from a number of different sources, and help you walk through them all to find the best blend of coverage and cost.