Insurance for therapists

One very useful type of insurance therapists need is professional liability insurance, which provides protection from issues that commonly come up in this industry. Professional liability insurance—sometimes called errors and omissions insurance (E&O insurance)—is coverage for claims against businesses that provide professional services, such as a therapy business like yours.

When is it important to have professional liability insurance? Here are some real-world examples that could occur in a therapist’s professional life. Based upon your experience in the industry, do any of these situations sound familiar or plausible to you?

• Alleged negligence: A couple has been seeing you for months, seeking counseling to rectify problems in their marriage. During a recent meeting the couple tells you that the counseling sessions are not doing any good, and they are headed for divorce. They blame you and say that you should have seen the signs of divorce earlier and threaten to sue you for professional negligence. Professional liability insurance may protect you against claims of negligence, even if you haven’t made a mistake.
• Loss of personal information: By mistake, the receptionist in your office misplaces a file with sensitive patient information. While it was an accident, what's done is done, and the client's information may have been compromised. If your client sues your business, the claim may be covered subject to the limit of insurance.

Patients and clients may have certain expectations of you and your services that aren’t met. In addition, differences in opinions and judgment can prompt patients to take legal action, even if you’ve done nothing wrong. Therapy is a challenging industry to be in, but a very rewarding one if you’re able to help your patients overcome obstacles and find health and happiness. Learn more about professional liability insurance.

A second type of useful liability insurance for therapists is general liability insurance. General liability insurance, sometimes called commercial general liability (CGL), could protect your business from another person or business’s claims of bodily injury, associated medical costs, personal injury and damage to property.

Having therapy general liability insurance coverage is beneficial in several instances. Here are a few industry-specific examples to demonstrate what we mean.

• Damage to your landlord’s property: As a therapist, you rent a small office. You have lit candles in the treatment room, and one of them is knocked over and catches fire. The landlord sues you for fire damage to that space, as well as water damage to the adjacent space after the sprinklers were activated. General liability insurance may protect you against third-party claims for property damage, to the extent you are liable, up to your policy limits.
• Bodily injury: A client is walking in for an appointment and trips on a chair in your waiting room. She breaks her arm and has to be taken to the hospital for treatment. General liability insurance may protect you against her claim for bodily injury, to the extent you are liable, and related medical costs.
• Personal injury: A marriage counselor meets her friend for coffee at a local cafe. She begins speaking about a client in a false and unflattering way. The client learns of this conversation and sues for slander. We may cover the subsequent claim up to the limit of liability, and pay for an attorney, if necessary.

Situations like the above are very unfortunate, but they do happen. Take charge of your therapy business and the risks surrounding it with a Hiscox insurance plan.

Learn more about general liability insurance costs to make a smart and forward-thinking decision for your therapy business.