Counselor Liability Insurance

Regardless of what kind of counseling you do, your job is to help people. Unfortunately, no matter how kindhearted your intentions are, the liability risks that accompany your trade can be extreme. The wrong diagnosis or advice can lead straight to a hefty lawsuit. That's why it's critical to protect yourself with adequate coverage.

Thankfully, a local independent insurance agent can help you find the right counselor liability insurance. They’ll work with multiple insurance providers who specialize in your field to bring you the protection options that work best for you. But first, here's a deep dive into counselor liability insurance and why it's necessary.

What Is Counselor Liability Insurance?

Counselor liability insurance is a special form of professional liability insurance designed for those in the counseling or therapy field. This coverage is also sometimes called therapist or counselor malpractice insurance or counseling insurance and can reimburse you for expenses related to professional errors and negligence while performing your work.

Professional liability insurance is especially critical for therapists and counselors to have because their advice can unintentionally cause clients more harm than good. In such a case, you could face an expensive lawsuit.

What Does Counselor Professional Liability Insurance Cover?

A professional liability insurance policy can cover many different expenses related to patient claims of harm caused by your services. This coverage can reimburse you for:

• Defense costs, including attorney and court expenses
• Punitive and compensatory damages
• Arbitration and settlement costs

Without enough professional liability protection, counselors could have to pay hefty lawsuit expenses and fees out of their own pockets. That's why having this coverage is so critical.

Who Needs Counselor Liability Insurance?

Any licensed professionals who offer therapy, counseling, and other related services to the public need the right coverage against lawsuits and expensive client claims. You likely need this coverage if you work as any of the following:

Regardless of the kind of therapy or counseling you offer, you are vulnerable to client or patient lawsuits for improper or inadequate advice and other harm caused by your services. An independent insurance agent can help you get equipped with the right kind of therapist malpractice insurance.

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Counselors Need Multiple Types of Liability Insurance

Licensed counselors often need multiple forms of liability protection. It's helpful to understand the distinction between these two main policies and why you need each.

• General liability insurance: This can reimburse you for third-party bodily injury or personal property damage claims. If a client slips, falls, and suffers a serious injury in your office or on the icy steps outside, this policy covers the cost of medical bills and any related lawsuits. It can also reimburse you for claims related to the accidental damage of a client's personal property.
• Professional liability insurance: This can reimburse you for the cost of third-party claims for professional errors and omissions. While general liability covers physical injuries and property damage in your office, your professional liability policy covers emotional and physical injuries, and other types of harm that result from advice or recommendations you made during a counseling session.

Your independent insurance agent can further explain the distinction between these two key types of liability protection for counselors.

Common Liability Claims Against Counselors

Due to the sensitive nature of the business, counselors and therapists can face more risk than workers in other professions. If a client decides your advice, or lack thereof, caused them harm, you could be found liable for damages.

Common lawsuits against counselors and therapists can be related to:

Depending on the specifics of your policy, not all of these claims may be covered. However, having liability insurance greatly increases your chances of getting reimbursed after a client lawsuit. Be sure to review your coverage with your independent insurance agent.

What Kind of Counselor Malpractice Insurance Do You Need?

Counselor malpractice insurance policies typically specify an individual coverage limit, or the maximum amount that will be paid for an individual claim, and the aggregate coverage limit, or the maximum amount that will be paid by your policy for all claims within the policy year. If your policy states it has limits of $1,000,000/$3,000,000, this means it can pay up to $1 million per claim and up to $3 million for all claims during the policy's term.

You can also choose between the following main types of counselor malpractice insurance:

• Claims-made policies: These policies only reimburse you if your service and the patient's claim were rendered while the policy was in force. Tail coverage, which extends protection for a set period, such as a few years after the policy's end date, may also be included in your policy.
• Occurrence policies: These policies can reimburse you if the service you offered occurred while the policy was in force, regardless of when the patient's claim is filed.
• Modified occurrence policies: Also known as tail coverage, this extends a policy's protection after its term ends. After that coverage has expired, you can choose to add unlimited tail coverage. When retiring, many counselors and therapists use tail coverage to protect against claims that may still arise from past services.

Your independent insurance agent can help recommend the right type and amount of counselor or therapist professional liability insurance for your profession.

How Much Does Counselor Liability Insurance Cost?

The cost of your counselor or therapist malpractice insurance can vary based on many different factors. These can include:

• Outstanding claims
• The specific services you offer
• The type and amount of coverage you need
• How many hours you work per week

A local independent insurance agent can help you find affordable counselor malpractice insurance near you.

Save on Professional Liability Insurance

Our independent agents shop around to find you the best coverage.

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The Benefits of an Independent Insurance Agent

When it comes to helping insurance customers find the absolute best counselor malpractice coverage, no one’s better equipped to help than an independent insurance agent. Independent insurance agents search through multiple carriers to find providers who sell counselor professional liability insurance, deliver quotes from a number of different sources, and help you walk through them all to find the best blend of coverage and cost.