Workers’ compensation insurance for therapists and counselors

From a fall on a staircase at a psychology practice to a dog bite at an animal-assisted therapy business, accidents are a possibility for any therapy and counseling employee. Because of the high cost of medical bills, even a minor injury can represent a huge setback for a small business owner.

Workers’ compensation insurance pays for medical bills and lost wages when an employee is injured, preventing accidents from disrupting your business.

• Immediate medical costs, such as emergency room expenses
• Ongoing medical costs, such as physical rehabilitation
• Partial lost wages while the employee is unable to work

Typically included in a workers’ comp policy, employer’s liability insurance provides protection when an employee sues over an injury. For example, a wellness counselor could file a lawsuit alleging that lack of proper building maintenance led to them tripping on a step and breaking an arm.

Employer’s liability insurance can help pay for:

• Attorney’s fees
• Court costs
• Settlements

Without employer’s liability insurance, your therapy or counseling business might have to pay for a costly legal defense out of pocket, even if a claim is frivolous.

The amount you pay for workers’ compensation is a specific rate based on every $100 of your business’s payroll. Your premium is determined by the type of work done by your employees (classification rate), your experience modification rate (claims history), and your payroll (per $100).

The formula providers use in underwriting to calculate workers' comp rates is:

Each state has its own laws regulating workers’ compensation insurance. For example, every therapy and counseling business in Connecticut must carry workers’ compensation insurance for its employees – even part-time workers. However, North Carolina businesses are typically required to carry workers’ compensation only when they have three or more employees.

Sole proprietors, independent contractors, and partners don’t have to carry workers’ compensation insurance, but you can purchase a policy to protect yourself, too. It's a good idea, as health insurance can deny claims for injuries related to your job.

In certain states, therapy and counseling businesses must purchase coverage through a monopolistic workers' comp state fund. Those states are:

• North Dakota
• Ohio
• Washington
• Wyoming

If you purchase workers’ comp through a monopolistic state fund, it might not include employer’s liability insurance. However, you can purchase it as stop gap coverage from a private insurance company.

All therapy and counseling practices face risks ranging from slip-and-fall accidents to lifting injuries. Whether you’re the owner of a family counseling practice or an occupational therapy business, you can create a safer work environment with:

• Employee safety training
• Equipment maintenance
• Building maintenance

By installing proper lighting and eliminating hazards such as uneven flooring, you can decrease workplace accidents. That means fewer claims – and a lower insurance premium.

Workers’ comp insurance protects your staff and to some extent your business, but it doesn't cover property damage, client injuries, and other common risks. Other recommended insurance policies for therapy and counseling businesses include:

General liability insurance: This policy can pay legal expenses related to client property damage and injuries, along with advertising injuries such as slander.

Business owner’s policy (BOP): This policy bundles general liability insurance with commercial property insurance at a lower rate than if the policies were purchased separately.

Professional liability insurance: Also called malpractice insurance for counselors, this policy can cover legal expenses related to accusations of errors or negligence.

Cyber liability insurance: This policy covers financial losses from data breaches and cyberattacks. It's recommended for any small business that stores personal information.

Commercial auto insurance: This policy covers the cost of accidents involving a vehicle owned by your therapy practice. Most states require this coverage for vehicles owned by a business.

Are you ready to safeguard your company’s therapists, counselors, and other employees with workers’ compensation insurance? Complete Insureon’s easy online application today. Once you find the right policy, you can begin coverage in less than 24 hours.