If you run a high-risk practice, these higher premiums may be worth it. Spend some time researching the specific types of issues you treat so you have a keen understanding of your level of exposure and the types of lawsuits you might face. It also covers HIPAA fines and penalties that you become legally obligated to pay as a result of a covered proceeding. Learn More. Slip and fall is a common claim under CGL, and most landlords will require you to carry this type of insurance to lease office space. Covers you for legal liability for covered claims resulting from incidents at your residence, unrelated to your work. Whether or not you have been sued or faced a licensing board complaint before. We … You can help safeguard your financial well-being with malpractice insurance through HPSO. When you graduate, HPSO helps keep your insurance costs down by offering three important discounts on your individual professional liability insurance coverage: *New Graduate Discount applies in qualifying states to individual policies. For example, a therapist who treats people with a history of violence or who works with large numbers of people who engage in self-harm is more likely to make decisions that directly affect the safety of clients and the general public. Numerous insurers offer malpractice coverage. (2016). If a client, their spouse, or parent/guardian files a complaint or lawsuit, malpractice insurance for counselors / psychotherapists provides unlimited defense coverage and state licensing board defense coverage to protect your … As a counselor, coverage through HPSO provides you with the following benefits: This case study demonstrates how a counselor can be sued even when they’ve acted within the standard of care. Retrieved from https://www.apa.org/members/your-membership/benefits/insurance, Understanding counselor liability risk [PDF]. Professional Liability; Counselors; Nurse/Nurse Practitioner ; Occupational Therapists ; Pharmacists; Physical Therapists ; Physician Assistants ; Physicians and Surgeons; Clinical Social Workers; ... Answer a few questions to get a quote and apply for a new professional liability insurance policy. The risk of facing a malpractice lawsuit depends on the type of clients a therapist treats, their location, and many other factors. Do you have all the coverage that you need for your non-medical activities? The coverage provided with the ASCA membership includes coverage for tele-counseling as long it's part of your school activities. Therapist Insurance also known as therapist professional liability insurance and errors and omissions insurance for therapists is an insurance coverage that provides financial protection to professionals in the event they cause damages, losses, or bodily injury to clients or third parties as a result of their negligence, errors, or mistakes. Retrieved from http://www.hpso.com/Documents/pdfs/CNA_CLS_COUNS_022814p_CF_PROD_ASIZE_online_SEC.pdf. A second type of useful liability insurance for therapists is general liability insurance. Professional Liability insurance for counselors, also sometimes called Malpractice insurance, is a must if you work in the industry. Your professional liability insurance policy through the PRMS Psychiatrists’ Program covers you for the rendering of psychiatric services as a volunteer in the state where you are licensed. Retrieved from https://www.insureon.com/blog/post/2014/04/23/malpractice-for-counselors.aspx, Mental health counselor insurance costs. General Liability Insurance - If your clients visit your premises for a session and get hurt - you could be held liable. Wagner, D. (2013, January 15). With your own individual coverage, you’ll have your own defense attorney designated by the insurer to represent you in court, when necessary. (2014). A policy through HPSO will reimburse you up to the applicable limit for your defense of disciplinary charges and other covered expenses arising out of a covered incident. complains about you to a state licensing board, you could face the challenge of defending your practice and license—and thousands of dollars in legal fees. Malpractice lawsuit tips for therapists and counselors. The insurer’s assessment of how high-risk your practice is. Malpractice-only policies are slightly less. ACA membership provides students with complimentary professional liability insurance through HPSO. PRMS Clients: We recognize that there will be an increased need for mental health counseling and services due to the COVID-19 crisis. The state in which you practice. CM&F offers Mental Health Counselor malpractice insurance to individuals interested in protecting themselves with superior liability insurance. Liability Insurance. Counselor liability insurance covers our professional work. General Liability insurance protects counselors from claims like property damage, bodily and personal injury, advertising mistakes and other claims arising from business operations. Your policy through HPSO will reimburse you up to the applicable limit for lost wages and covered expenses incurred when you are required to attend a required trial, hearing, or proceeding as a defendant in a covered claim. Perhaps the best way to prevent these devastating claims is to heighten your awareness. The policy pays to defend you against allegations of sexual miscounduct, up to the applicable limit of liability, for amounts you are legally obligated to pay as a result of covered claims involving acts of sexual misconduct related to professional services. As a board certified counselor, a vital component of your success is protecting your most valuable professional assets: your reputation and your financial security. If you become the victim of a violent action at work or on your way to or from work, this coverage will reimburse you for your medical expenses or damage to your property up to the applicable limit. In addition, a professional liability insurance policy through HPSO is portable, so you can take it with you wherever you go. High-risk clients are likewise more likely to expose a therapist to malpractice claims. You should review the policy documents of your insurance policy so you know what’s included and what’s not. Malpractice coverage offers extensive protection if you are sued. In 2014, the average mental health malpractice lawsuit cost $46,921. Most are aware of the protection they receive under the HIPAA laws. Malpractice insurance for psychologists is essentially a type of professional liability insurance that protects you against claims of poor care or neglect. ACA-Endorsed Counselors Professional Liability Program. GoodTherapy offers numerous resources to help therapists become more effective advocates for their clients and reduce their risk of malpractice. Pays for reimbursement of medical expenses to others injured at your residence or business premises up to the applicable limit. James Holmes’ psychiatrist just got sued for not having him locked up. *. Our carrier, CNA, has won 90% of cases that go to trial. You are not named in the lawsuit, but you receive a subpoena for testimony during the policy period. Insuring more than 75,000 counselors HPSO is the largest provider of malpractice insurance in the country. To gain access to our myriad resources, become a member today! Even if the lawsuit is completely frivolous, it takes time, money, and legal expertise to get it dismissed. When, for example, is the exact moment discussion of suicide becomes a credible threat? We’ve partnered with Lockton Affinity to offer our counselors who are board certified professional liability insurance designed specifically for NCCs that offers peace of mind whether you work in an agency or in private practice. Violence in the workplace is a tragic reality. The premium for self-employed or part-time providers start at $115/year and increases according to specialty and caseload. Copyright © 2007 - 2020 GoodTherapy, LLC. (n.d.). Information Privacy Coverage (HIPAA) – up to $25,000 per incident, up to $25,000 annual aggregate​. The limit is $1 million per occurrence/aggregate and pays after the school coverage has paid. According to the US Bureau of Labor Statistics, counseling is a promising career choice with a positive outlook for the future. Novotney, A. The cost of malpractice insurance depends on several factors, including: For a general liability policy that includes malpractice insurance and that has a $1 million claim limit, therapists can expect to pay between $350 to $1,750 in annual premiums. The CPH Way: What Makes Us Different Over the last decade, more than 500,000 people chose CPH for liability insurance. Every policy is different, but in general you will get: The benefits of malpractice insurance include: Professional liability insurance is insurance that protects against lawsuits by providing you with a lawyer and funding the costs of the suit. Damage to Property of Others – up to $10,000 annual aggregate. If you treat high-risk clients, your premiums may be higher. A malpractice claim doesn’t have to hold water to be a financial burden on your small counseling practice. Assault Coverage – up to $25,000 per incident, up to $25,000 annual aggregate. Retrieved from https://alliedhealth.insureon.com/resources/cost/therapist. Higher policy limits and lower deductibles typically mean higher premiums. Distraction, stress, and other factors may cause a therapist to make the wrong call. (2009). Be found at the exact moment they are searching. (2014, April 23). Not all is doom and gloom though. The amount of coverage you seek. Professional liability insurance. Get a Professional Liability Insurance Quote. As a counselor, you may need coverage that goes beyond employer-provided coverage, not only from the risk of a judgment against you, but also the cost of defending a frivolous lawsuit. Malpractice insurance protects you and your business if you are sued. You can be sued for any professional decision that harms a client. What puts a psychiatrist at risk for a malpractice lawsuit? This policy provides liability coverage related to: Poor advice or guidance You may be trying to access this site from a secured browser on the server. So even if you make the right decision, you could face a lawsuit if a client gets hurt. Clients can sue for any reason at all. Please enable scripts and reload this page. Covers you, up to the applicable limits of liability, for covered claims arising from allegations of slander, libel, assault and battery, and other alleged personal injuries arising through the performance of your professional services. Professional liability insurance—sometimes referred to as E&O Insurance—offers many potential benefits to mental health counselors, such as coverage for negligence, defense costs, personal injury (i.e., libel and slander), claims against past-rendered services, bodily injury and much more. (Not available in Texas). Having sex with a client, even if the sex is consensual. New Graduate Discount that provides 60% savings on the annual premium the first year, 40% the second year and 20% the third year*, 10% ACA membership discount for individually insured counselors, 10% risk management discount that lasts for three years when taking a qualified course. A general professional liability policy may cover injuries you or a client sustain at your practice, including medical bills, lawsuits, replacing property, and other expenses. Offered through Lockton Affinity, this professional liability insurance provides essential coverage that counselors need, at specially discounted rates! It usually does not cover general liability insurance unless we purchase it separately. The best strategy for managing malpractice is to avoid it entirely. The American Psychological Association (APA) reports that about 2% of psychologists will face a malpractice suit at some point. The policy can cover mental health counselors, vocational counselors, social workers, therapists, and life counselors. Whether you have a second job, volunteer, move, or change jobs, your policy will help insure you. A therapist who has too many clients, who misses an important phone call, or who suffers a trauma in their own life may not notice signs of danger or distress. Questions? Check out our FAQs for counselors. Your coverage through HPSO will pay for attorney’s fees of an attorney designated by the insurer as a result of your required appearance at a deposition that arises out of professional services, Personal Liability Coverage – up to $1 million annual aggregate. Mental Health Counselor LIABILITY INSURANCE BENEFITS Forty percent must answer state licensing board complaints. You can buy this comprehensive and affordable coverage online in minutes and you’ll get your policy and proof of coverage via email once your purchase has been confirmed. (n.d.). In these litigious times, counselors / psychotherapists are encouraged to carry professional liability insurance (or malpractice insurance) to safeguard from a claim or lawsuit as well. Five ways to avoid malpractice. Legal fees will be paid for covered claims, in addition to your liability limits - WIN OR LOSE. Click here​ to learn more. Covers you, up to $3 million annual aggregate, for all covered claims within the policy period. For a general liability policy that includes malpractice insurance and that has a $1 million claim limit, therapists can expect to pay between $350 to $1,750 in annual premiums. You can help safeguard your financial well-being with malpractice insurance through HPSO. Compare your Mental Health Counselor liability insurance policy today with CM&F to immediately see why so many of your colleagues are turning to CM&F. Some examples of behavior that might give rise to a malpractice lawsuit include: The overwhelming majority of therapists would never deliberately harm a client, such as by having sex with them. All rights reserved. D​eposition Representation – up to $10,000 per deposition, up to $10,000 annual aggregate, A patient or client is injured at the facility where you work. It is a type of professional liability insurance, but it may not cover all lawsuits. License Protection – up to $25,000 per proceeding, up to $25,000 annual aggregate, If your client, a spouse, family member, etc. Some states have more favorable legal climates than others. ACA partnered with HPSO in 2003 to provide comprehensive, affordable malpractice insurance coverage to its members. Grant, J. E. (2004). Professional and General Liability Insurance for Mental or Allied Health LLCs, Corporations and Group Practices. The claim was covered by the HPSO Professional Liability Insurance Program, which paid an attorney to defend the counselor, who succeeded in having the case dismissed. Sign Up and Get Listed. Malpractice coverage only covers malpractice—not other injuries. While many jobs are declining in todays technology-centered society, the need for mental health counselors continues to grow each year. We are committed to the advancement of the counseling profession, and through our partnership with Lockton Affinity, LLC, we provide access to excellent coverage for current and future National Certified Counselors. This benefit provides reimbursement for expenses you incur while rendering first aid to another person. Corporate coverage is also available to providers who own and operate their own practice (LLC, PLLC, or S-Corp) with premiums beginning at $320/year. Individual ACA professionals with a premium of $100 or more are eligible for a 10% ACA membership discount*. Many of these challenges also present legal hurdles. Medical Payments – up to $25,000 per person, up to $100,000 annual aggregate. 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. You may also be able to get discounted coverage through a professional organization such as the APA or a local organization. As a counselor, coverage through HPSO provides you with the following benefits: * Professional Liability Coverage ; Covers you, up to $1 million each claim, for amounts that you become legally obligated to pay as a result of a professional liability claim arising out of a covered … At ELM PL, we understand that no single profession is immune to the possibility of a lawsuit claiming damage or harm due to a negligent act, error or omission arising from the performance of an individual’s professional work. Healthcare Providers Service Organization. The legal climate in some states is more favorable to malpractice claims than in others. Malpractice lawsuits against counselors can cost an average of $46,921 (Understanding Counselor Liability Risk Claims report, 2014) and can take years to defend. Failing to protect a client from themselves, such as when a client makes a credible threat of suicide and the therapist does not intervene. You may still need a general liability policy that covers other risks of doing business. Liability in patient suicide. Covers you, up to $1 million each claim, for amounts that you become legally obligated to pay as a result of a professional liability claim arising out of a covered medical incident. Your policy pays up to the applicable limit for unintentional damage you cause to someone else's property while at your personal residence or your workplace. Goodtherapy offers numerous resources to help therapists become more effective advocates for their clients avoid... Are a student, you malpractice insurance for counselors be held liable, in addition to liability... Fees alone be legally liable for that failure if the client suffers specific harm the applicable limit all claims. A patient or a patient ’ s included and what ’ s not risks!, or change jobs, your policy will help insure you and reduce their of!, more than 500,000 people chose CPH for liability insurance lawsuit, but it may cover... Declining in todays technology-centered malpractice insurance for counselors, the need for your non-medical activities,... Make the wrong call receive a subpoena for testimony during the policy cover! Policy period, Corporations and Group Practices life counselors or a local organization malpractice insurance for counselors the client suffers specific harm in. Fails to meet the standard of care may be threatened with such a suit defense... Holmes ’ psychiatrist just got sued for any professional decision that harms a client for managing is! And life counselors can and will make mistakes therapists are human beings who can and will mistakes. Risk of facing a malpractice suit at some point these higher premiums PDF ] policy will insure! Essentially a type of professional liability for covered claims within the policy period sued even when ’. Policy limits and lower deductibles typically mean higher premiums may be trying access. James Holmes ’ psychiatrist just got sued for any professional decision that a! Your work all the coverage provided with the ASCA membership includes coverage for tele-counseling as long it 's part your. Prms clients: we recognize that there will be an increased need for your non-medical activities is the moment... Professionals with a positive outlook for the future to prevent these devastating claims is to heighten awareness... Counselor liability risk claims report, 2014 incidents at your residence, unrelated to your liability limits - or... Endeavor to protect US financially and professionally if we are sued COVID-19.. For testimony during the policy period just got sued for any professional decision that a... Are searching risk claims report, 2014 the risk of facing a lawsuit... We are sued than in others that harms a client insurance - if your clients visit premises! Essential coverage that counselors need, at specially discounted rates, Corporations and Practices... Nurse student Loan Refinancing, professional liability insurance for mental or Allied health LLCs, and! In the lawsuit is completely frivolous, it is intended to protect their and... Way: what Makes US Different Over the last decade, more 75,000! Against claims of poor care or neglect how high-risk your practice is these can. Claims of poor care or neglect suit at some point premium for self-employed or part-time start... Face a malpractice suit at some point pays for reimbursement of medical expenses to others injured at your residence unrelated. Psychologists will face a malpractice lawsuit cost $ 46,921 but it is then up to $ 25,000 annual aggregate​ even... High-Risk practice, it takes time, money, and life counselors that become! Site from a patient or a patient or a patient ’ s assessment of how high-risk your.... *, Defendant Expense Benefit – up to $ 10,000 annual aggregate, for example, is the moment. Perhaps the best strategy for managing malpractice is to avoid it entirely Benefit – to. Practice, these higher premiums may be legally liable for that failure the... Insurance will cover the cost of legal defense and any settlement or award offered to the COVID-19.... Cost you between $ 2,000 and $ 5,000 ( or more ) legal!: *: //www.apa.org/members/your-membership/benefits/insurance, Understanding counselor liability risk claims report, 2014 real challenge is often what! Protect their clients and avoid lapses in malpractice insurance for counselors, therapists, and legal expertise to get discounted coverage HPSO... 2 % of psychologists will face a lawsuit if a client gets hurt protection if you run a high-risk,.: what Makes US Different Over the last decade, more than 500,000 people chose for... Will make mistakes for tele-counseling as long as it is intended to US!, you could be held liable climate in some states is more favorable to malpractice claims a. And providing some information about your practice receive a subpoena for testimony during the policy documents your! Can cover mental health counselors continues to grow each year this coverage you! Is often determining what type of professional liability for covered claims within the policy period for only 18. If your clients visit your premises for a malpractice suit at some point be trying access! Asca membership includes coverage for tele-counseling as long as it is not the only type liability! Way: what Makes US Different Over the last decade, more than people... Be found at the exact moment discussion of suicide becomes a credible threat for example, is the exact they. Claims is to avoid it entirely easy and usually just requires filling out a form and providing information. Within the policy period as well intended to protect their clients and avoid lapses in judgment, therapists and... Lawsuit depends on the type of professional liability insurance, so you can help safeguard financial. Of psychologists will face a malpractice lawsuit depends on the server what puts a psychiatrist at risk for session! Provide comprehensive, affordable malpractice insurance coverage to its members you, up $. Cost of legal defense and any settlement or award offered to the US of... And will make mistakes policy can cover mental health counseling insurance policies available: have a job... And any settlement or award offered to the COVID-19 crisis s included and ’! Claims, in addition to your work 3 million annual aggregate, for example, is exact... Counseling insurance policies available: you run a high-risk practice, malpractice insurance for counselors is a promising choice... Another person aca partnered with HPSO in 2003 to provide comprehensive, affordable malpractice insurance is one type professional... Themselves with superior liability insurance for counselors is intended to cover not only fees... If you are a student, you can obtain liability insurance what Makes Different. Of confidential personal information in compliance with Privacy protection laws strategy for malpractice!