- Professional liability insurance
Professional liability insurance, also called errors and omissions insurance, protects small businesses against the costs of client lawsuits over unsatisfactory work.
Professional liability insurance guards against errors
A simple mistake – such as a therapist misreading a client – can result in major legal consequences. If a client or relative files a lawsuit, your small practice could face a draining legal battle.
Professional liability insurance, also called malpractice insurance, can provide the protection your therapy or counseling practice needs to continue offering its services while resolving a legal matter.
This policy provides liability coverage related to:
- Poor advice or guidance
- Accusations of negligence
- Mistakes or oversights
What coverage can professional liability provide for therapists and counselors?
Poor advice or guidance
An accusation of poor advice can have tremendous repercussions. For example, an occupational therapist could recommend that a client return to work before the client is ready. If that client is injured, the therapist could face a lawsuit. Professional liability insurance can help cover attorney’s fees, settlements, judgments, and other legal costs if a client claims your therapy or counseling services caused harm.
Accusations of negligence
Speech therapists, faith-based counselors, and other therapy and counseling professionals are highly vulnerable to claims of negligence. For instance, a client battling addiction could claim that a counselor failed to prevent a relapse. If the client sues, professional liability insurance can cover the cost of hiring a lawyer and other legal expenses.
Mistakes or oversights
An allegation of professional error – even one found to be frivolous – could still result in a costly malpractice lawsuit for a therapist or counselor. For example, a psychologist could give an incorrect diagnosis of a patient’s mental disorder that leads to ineffective treatment. Professional liability insurance can cover the cost of your legal defense and other expenses related to the error, such as a settlement.
Other important policies for therapists to consider
While professional liability insurance guards against accusations of errors and negligence, it does not provide absolute protection. Accidental injuries and property damage are daily risks when you work directly with patients. Other policies to consider include:
General liability insurance: This policy can pay legal expenses related to client property damage and injury, along with advertising injuries such as slander.
Business owner’s policy: This policy bundles general liability insurance with commercial property insurance at a lower rate than if the policies were purchased separately.
Workers’ compensation insurance: Required in almost every state for counseling businesses with employees, workers’ comp can cover medical costs for work injuries.
Get free quotes and compare policies with Insureon
Are you ready to safeguard your speech therapy clinic, psychology practice, or other therapy and counseling business with professional liability insurance? Complete Insureon’s easy online application today. Once you find the right policy, you can begin coverage in less than 24 hours.