How much does insurance cost for occupational therapists?

Professional liability insurance, also called errors and omissions insurance (E&O insurance) or medical malpractice insurance, costs an average of $46 per month, or $547 annually, for occupational therapists.

This policy covers the cost of malpractice lawsuits over liability claims that your occupational therapy sessions were unsatisfactory, negligent, or late.

For instance, if you miss a session or fail to provide first aid to a patient, a professional liability insurance policy would cover your legal defense costs, settlement, and other financial losses if the patient sued over professional negligence.

Below is the average professional liability insurance policy for occupational therapists who buy from Insureon:

Premium: $46 per month
Policy limits: $1 million per occurrence; $3 million aggregate
Deductible: $750

Several factors influence the cost of professional liability insurance, including the types of patient care services you offer, your claims history, and the policy limits you choose.

As with other types of insurance, you can save money on professional liability coverage by choosing lower limits or a higher deductible.

Reducing your risks also helps you avoid claims and keep your premium low. This includes clear communication with patients and thorough documentation of all communications and agreements. Note that professional liability coverage does have exclusions, such as sexual misconduct or harassment.

Occupational therapy businesses pay an average of $29 per month, or $350 annually, for general liability insurance. This policy is sometimes called public liability insurance.

General liability insurance covers common third-party risks at your occupational therapy practice, such as a patient who slips on a wet floor and suffers a bodily injury, or accidental damage to a patient's property.

For example, if you drop and break a patient's smartphone while showing them resources, general liability insurance coverage would pay for your legal representation if the patient sues over property damage.

It also helps pay for attorney's fees and other legal expenses if someone sues your business over copyright infringement or other advertising injuries, including defamation.

Below is the average general liability policy for occupational therapists who buy from Insureon:

Insurance premium: $29 per month
Policy limits: $1 million per occurrence; $2 million aggregate
Deductible: $500

The per-occurrence limit is the maximum your insurer will pay for a single covered incident, while the aggregate limit is the most the insurer will pay for all claims during the policy period, typically one year.

General liability insurance costs depend on factors such as the liability limits and deductible you choose, the types of professional services you offer (e.g., telehealth services), your business income, and any additional insured endorsements you select.

Learn more about how your insurance premium is calculated and how to save money on your general liability coverage.

Occupational therapy businesses pay an average of $64 per month, or $773 per year, for a business owner’s policy.

A business owner's policy, or BOP, bundles general liability coverage with commercial property insurance to cover both third-party risks and your business property. It typically costs less than purchasing each policy separately.

A BOP protects against patient personal injuries, property damage, and vandalism. It also covers damage to your business equipment, as well as your clinic. Because of its increased coverage and affordability, it’s the policy most often recommended by Insureon’s agents for those who rent or own a clinic or practice.

This is the average BOP for occupational therapy professionals who buy from Insureon:

Insurance premium: $64 per month
Policy limits: $1 million per occurrence; $2 million aggregate
Deductible: $500

Small, low-risk occupational therapy companies are often eligible for a business owner's policy.

Occupational therapy business owners may see higher costs if they choose to add endorsements to their policy. Insurance endorsements, such as business interruption insurance or equipment breakdown coverage, are often recommended to help pay for lost income if a fire or power outage forces your business operations to cease for an extended period of time.

The cost of a business owner's policy is based on many factors, including the value of your business property, where you are located, the number of employees you have, and your specialty.

For occupational therapists, the average cost of workers’ compensation insurance is $62 per month, or $746 annually.

This policy covers medical expenses and lost wages related to employee injuries. It usually includes employer's liability insurance to protect against lawsuits from workers who get injured or ill on a jobsite.

Businesses with employees typically must purchase workers' comp to comply with state requirements and avoid penalties. For example, all healthcare providers in California, Pennsylvania, and New York must carry workers' comp if they have one or more employees. Florida businesses need coverage when they have four or more employees, and coverage is optional in Texas.

Since health insurance plans can deny claims for injuries related to your job, workers' comp coverage is also recommended for self-employed and independent contractors as a financial safety net and for peace of mind.

The cost of workers' comp depends on several factors, primarily the number of employees you have and their occupational risks. You can save money on workers' comp coverage by classifying your employees correctly and implementing a risk management plan to avoid work-related injuries and subsequent claims.

Small businesses, including occupational therapy clinics, spend an average of $145 per month, or $1,740 per year, on cyber insurance. This policy is also called cyber liability insurance or cybersecurity insurance.

Cyber insurance helps occupational therapists and other healthcare professionals recover financially after a cyberattack or data breach. It can cover data breach investigations, cyber extortion payments, and costs related to complying with your state's data breach laws.

A cyber liability insurance policy is especially crucial for occupational therapy companies that store data regulated by HIPAA and other sensitive patient information, such as credit card numbers, phone numbers, and email addresses.

The cost of cyber insurance and the coverage you need depend on the amount of sensitive information you handle at your occupational therapy practice.

Small business owners, including occupational therapists, pay an average of $147 per month, or $1,762 per year, for commercial auto insurance.

This type of insurance pays for legal fees and medical payments if your company vehicle injures someone or damages their property in an accident. It can also cover vehicle theft, vandalism, and weather damage.

Most states require commercial auto insurance for vehicles owned by a therapy practice. For personal, rented, and leased vehicles used for work purposes, look to hired and non-owned auto insurance (HNOA) instead.

The cost of commercial auto insurance depends on several factors, including your policy limits, the coverage options you choose (e.g., additional insured endorsements), the number and value of your vehicles, and the driving records of anyone permitted to drive.