Best Help For The Saviours:
Liability Insurance For Therapists

TLTR: This article is about liability insurance for therapists. The article explores various kinds of therapy, risks that may arise in the day-to-day job of a therapist, and the coverage area of the insurance policy. Some frequently asked questions are also answered towards the end of the blog.

“Success as a therapist is not found in doing something for the client but rather in being someone for the client.” — Ili Rivera Walter

The COVID-19 pandemic was difficult for everyone. With death and despair around, more people sought therapy than ever. An article by the KKF suggests that mental health issues in the U.S. have significantly risen. About four out of ten adults reported mental health problems. With the rising mental health issues, the number of people going to therapy also significantly rose. But what does this mean for the therapists?

With more people in therapy, many professionals are feeling burned out. This phenomenon is causing many problems for professionals. Professional liability insurance for therapists is crucial in such a climate.

In this blog

What Is Liability Insurance For Therapist?

Therapists are faced with many ethical and legal conundrums each day. They need to decide whether or not any threat is credible enough for them to report it. If they fail, that could result in serious injury should their client attempt suicide. This might be due to a lack of treatment from the therapist who did not take action soon enough on behalf of their patient.

Therapy requires responsibility as therapists must weigh out multiple factors before deciding what course of intervention would best serve their patients’ needs. At the same time, they also need to protect themselves legally against any potential mishaps which can occur during therapy sessions.

According to Medscape, 41% of psychiatrists in the US have been sued for malpractice at least once as of 2019. Slipping on occasions or making a mistake is a normal human occurrence. But as a therapist, making mistakes can cost you a huge fortune. Liability insurance for therapists is similar to legal malpractice insurance. As a therapist, it’s one of the most important insurance policies you can invest in.

Liability insurance for physical therapists is also equally important. Take the Walker v. Segura Jr example. According to the Cook Country Record, a physical therapy clinic was sued for negligence and malpractice. In this case, the patient was receiving treatment for back and foot pain. The patient eventually sustained a fraction and required surgery. This led them to sue the clinic.

Cases like the above mentioned are quite common. This is why physical therapy liability insurance is necessary.

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Who Needs It?

While talking about therapy, it’s also important to note that liability insurance is important for all kinds of therapists. This includes:

  • Physical therapist
  • Addiction therapist
  • Speech therapist
  • Massage therapist
  • Behavioral therapist
  • Clinical therapist
  • Child therapist
  • Exercise therapist
  • School therapist
  • Trauma therapist
  • Nutritional therapist, and more

Risks That May Require Liability Insurance for Therapists

There are many kinds of therapists around but they can be broadly categorized into mental and physical therapists. Both of these categories have their separate set of risks involved. Liability insurance for therapists may come in handy when there is:

Negligence

According to Statista, there were 491 addiction treatment facilities that provide medicinal treatment in the U.S. as of 2019. For therapists working in such settings, there are high chances of unintentional negligence. For example, you may accidentally prescribe a client a dosage that is a little excess for them.

Personal Injury

There are so many therapy types. Some of them require the clients to have hands-on experience. For example, if you are an art therapist, you may incorporate movement therapy techniques in your session. If a client gets injured in one of your sessions, they can take legal action against you.

Personal injuries are also common among physical therapists.

High Risk Patients

If you have patients who have suicidal ideation or some form of severe mental health disorder then you might want to invest in liability insurance for therapists. Sometimes, regardless of how much time you invest in a person, you just can’t save their life. This is the harsh reality of being a therapist.

Unfortunately, in such situations, the legal implications are really difficult to navigate through. For example, if one of your clients ends up committing suicide then you may be involved in the legal process of examination of their death.

Misinterpretation

As a therapist, you understand how your client may hang on to every word you say. In some cases, clients may take you literally for even the most metaphorical things you tell them. For example, you ask a client to let be more laid back and the next thing you know, they are suing you for their own misfortunes.

Misinterpretation with clients is not unheard of and it certainly isn’t either party’s fault. In such cases, liability insurance for therapists is here to save your day!

Misguidance

According to a report on Statista, physical therapists sometimes work for over two hours on one client when in residency. This kind of workload is bound to create exertion among the therapists which can lead to misguidance. Essentially, a tired mind is not a sound mind to take decisions. In such cases, liability insurance for therapists can really come in handy.

Time Killers

Therapists usually charge on an hourly basis. While this is beneficial for the clients, sometimes they may create problems. For example, a therapist may use unnecessary steps to kill the time so they can get paid for doing less.

Such examples are obviously not common and we are sure that as a therapist you probably know that. However, in such situations, the client can accuse you of fraud or something similar.

What Are The Coverages Under Liability Insurance For A Therapist

As a health care professional, you must have heard of or even have some form of medical malpractice insurance. Liability insurance for therapists works similarly. Here are some areas that the policy will cover:

  • Professional Liability Coverage
  • License Protection
  • Defendant Expense Benefit
  • Deposition Representation
  • Personal Liability Coverage
  • Defense Attorney Provided
  • Assault Coverage
  • Personal Injury Coverage
  • Medical Payments
  • Damage to Property of Others
  • First Aid Expenses
  • Sexual Misconduct
  • Information Privacy Coverage

What Are Some Other Coverages That You Should Consider Having

General Liability Insurance

General liability insurance protects individuals and businesses from many of the errors that can occur. That includes third-party property damage, bodily injury, but also medical expenses and legal defense costs. If someone is injured on your property or you are sued for causing an accident to happen.

Cyber Liability Insurance

Can your patients book their treatment sessions online? Do you take credit card payment? Protecting sensitive information is a crucial part of running an office, from digital records to financial data. If the cyber world crosses into yours and you are subject to a data hack (data breach) or phishing scam, fines will be significant–and costly for business owners like yourself! Cyber liability insurance has proven its worth time after time in protecting vital company resources.

Worker’s Compensation Policy

If you have employees, workers compensation insurance is mandatory in many states. Some benefits are for the company and others make sure that your employee doesn’t suffer because they got injured on a job site. This can help cover the damages related to medical expenses, costs to cover their position if it becomes necessary while they recover from injury or illness, and paid leave during time off due to an accident at work as well as other reasons like family emergencies or education purposes.

Commercial Property or Renters Insurance

As a freelance therapist, you may need to invest in your own office space. If you own or rent your office space, it is important to have coverage for the natural disasters and accidental disasters that occur. In this case, commercial property insurance or renters insurance.

Commercial Auto Insurance

The commercial auto insurance policy is perfect for those who only use their vehicle when they’re working. This type of coverage can be added to personal car insurance, and it will help with the costs should you ever need an accident-related rental or tow truck.

How Much Does Liability Insurance For Therapists Cost

According to Insureon, liability insurance for therapists can cost less than $30 per month. This policy will provide protection for third-party liability (bodily injury and property damage) and advertising injury.

Here are some companies you can consider buying the policy from:

  • AIG
  • Pogo
  • The Doctor’s Company
  • Embroker
  • Covered by SAGE
  • Thimble Insurance
  • Hiscox

Conclusion

Purchasing liability insurance for therapists is an investment in yourself, your family, and the people who are counting on you. Businesses and individuals these days cannot afford to have liability lawsuits. The reality of life includes lawsuits, battles with insurers, and bodily injury accidents that can really have devastating effects on individuals, their families, and their loved ones.

Purchasing liability insurance protects you from lawsuits filed as a result of any accidents stemming from your work or personal activities. The cost varies between $100 – $1 million depending on the size and needs of your business and coverage requirements set forth by state laws. If you are worried about covering costs if someone sues you for injury incurred at your place of business, it’s best to opt-in upfront rather than wait until something happens to purchase the policy.

If you have any more questions about this topic, feel free to get in touch with a local insurance agent or even our team–we’re happy to help! Who knows? You might even find some new coverage options when it comes time to renew your policy next year.

Frequently Asked Questions (FAQs)

How Much Does Liability Insurance For Therapist In Office Or Home Office Cost?

Therapy professionals are insured through professional liability insurance. So, while the rates vary depending on the type of practice and where it’s located, most therapists will pay between $400 and $650 per year for a policy that covers them both in their office and in their home office.

Don’t forget to check with your insurer about what types of therapy will be covered under your policy when providing service at home! For example, some policies cover only select forms of metal therapy but not other types of physical therapy.

How Can I Find A Good Liability Insurance Policy That Fits My Needs?

There are many policies to choose from, but the more important thing is whether or not you need them. Liability insurance covers damages that you have incurred through negligence. If your risks for incidents of negligence are low, then you should be able to get coverage without a long waiting period and with a reasonable premium.

However, if your risks for incidents of negligence are higher than the average person’s risks as an individual— meaning occurrences like lawsuits against you are likely at least once every 20 years then premiums will be expensive, and waiting periods might last years due to limited availability of liability coverages.

Who To Contact If I Need Help With My Liability Insurance Policy?

Depending on the insurance company, your agent should be able to help you. Remember that agents have experience in providing a variety of solutions for different business types and their needs. You can also contact them with questions to find out if there is a solution that meets your specific situation. You should never hesitate to call your agent when you need assistance–a phone call may be all that it takes for the agent to get it sorted out!

Do I Need Professional Liability Insurance If I Work For An Employer?

If you are a freelance contractor, sole proprietor, or work for a small business as an independent contractor and your work does not generate less than $100k in annual gross income, then yes. Liability insurance provides protection from injuries or damages to persons or property which you may unintentionally cause as a result of your occupation.

You need both personal liability coverage as well as general business liability coverage for your company if it is not full-time but only part-time or a side job.

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