Therapist Malpractice and Liability Insurance

If you work as a therapist, medical malpractice coverage insures you against claims of negligence or of making a mistake that caused harm to another. This includes providing you with a lawyer to defend yourself and the funds you can use to pay judgments or settlements.

AMOUNT COVERED:
Typical limits of liability range from $500,000 per claim/$1 million aggregate to $2 million per claim/$6 million aggregate

If a claim is filed against you, we’ll retain a lawyer for you from our network of defense attorneys specializing in professional liability. We’ll also pay for related defense costs (e.g., lawyer fees, court fees, expert witness costs).

Note that these defense costs are outside the limits of your insurance. This means that their services don’t cut into the settlement fees you may need to pay after a ruling.

AMOUNT COVERED:
Provided in addition to your policy’s limits of insurance

We work with your defense attorney to reach the best possible outcome for you. We won’t settle a claim without your approval.

Your policy applies on a worldwide basis, as long as a claim is brought against you in the United States (which includes any U.S. territories or possessions).

If you provide professional care to someone who is not your patient in a first aid or emergency situation, and that person files a claim against you, your policy would still apply.

If a claim alleges that you violated privacy rules in connection with private health information, we provide you with access to counsel and will reimburse you for costs related to HIPAA proceedings — including relevant HIPAA fines.

AMOUNT COVERED:
$25,000 per policy period

If the professional licensing authority is investigating matters related to your professional conduct, our policy provides you with legal defense.

AMOUNT COVERED:
$25,000 limit per policy period

If we ask you to attend litigation activities (e.g., a deposition), our policy will reimburse you for actual lost wages and any necessary expenses you incur (e.g., travel, meals).

AMOUNT COVERED:
Up to $1,000 per day

If you face a threat to your professional reputation, we can provide you with a crisis management/public relations consultant to help clear your name.

AMOUNT COVERED:
$50,000 per claim

The policy applies if someone files a claim against you alleging that your premises or operations caused them bodily injury or harm.

AMOUNT COVERED:
$1 million occurrence/$1 million aggregate

If you’re audited by either Medicare or Medicaid, we offer reimbursement for related accountant or attorney costs that result from the investigation or defense of the audit proceedings.

AMOUNT COVERED:
$30,000 for a covered audit and related expenses

The cost of therapist malpractice insurance depends on a number of factors, including your location, claims history, and years of experience. Typically, therapist malpractice policies with limits of liability of $1 million per claim and $3 million total start at an average of $363 per year for a supplemental policy and $765 year for a primary policy. The best way to find out how much you could pay for your malpractice insurance policy is to get a quote.

Therapists should make sure they’re protected with comprehensive malpractice coverage, even if it’s not legally required in your state. No matter how diligent you are, you could be sued for allegedly deviating from the standard of care and causing a patient injury. In the event of a malpractice lawsuit, your insurance policy can help cover legal costs, such as attorney fees and court costs, as well as settlement costs for which you’re found liable. Without malpractice insurance, you might have to pay for these potentially hefty costs out of pocket.

Malpractice insurance (also known as professional liability insurance) is essential for therapists, even when you feel confident that you’re following the standard of care for your services. In the event of a malpractice lawsuit, your insurance can help cover legal fees and settlement costs, as well as other expenses.

In addition, even if you’re covered by your insurer’s insurance policy, you can still benefit from having your own insurance (also known as “supplemental” coverage). This supplemental policy can give you a larger pool of money to pay for legal representation and settlement costs, while also giving you more control over your own defense, such as providing consent before settlement. Plus, there are a number of instances in which your employer’s policy might not cover you, such as HIPAA violations, licensing board complaints, and more.

At its most basic, therapist malpractice insurance can help cover your legal defense and settlement costs in the event that you’re sued for malpractice. From there, coverage can vary based on the provider and policy you choose.

At Berxi, our malpractice insurance offers additional coverages and comprehensive protections for therapists. Features of our malpractice policies for therapists include:

• Licensing board protection defense
• HIPAA violation defense
• Wage loss and deposition expenses
• Reputation coverage
• Consent to settle (meaning we don’t settle a claim without your approval)

Malpractice insurance is a type of professional liability insurance, and therapists should carry a malpractice policy to help provide legal and financial protection in the event of a claim. In addition, if you own your own practice, you should consider general liability insurance. A general liability policy can help protect you against claims of non-medical bodily injury, such as someone slipping in your office; claims that you accidentally damaged someone else’s property; and claims of non-physical personal injury, such as libel or slander.

For a policy with limits of liability of $1 million per claim and $3 million total, psychologist malpractice insurance typically starts at an average of $363 per year for a supplemental policy and $765 per year for a primary policy. However, the price depends on a number of factors, including how much coverage you want, where you practice, your years of experience, your claims history, and more. The best way to figure out how much your psychologist malpractice policy will cost is to get a quote.

Yes, psychologists should have medical malpractice insurance. In many states, psychologists are required by law to carry a malpractice policy – and even if not, your malpractice insurance can provide essential financial and legal protection. If a patient makes a claim against you, your malpractice insurance can step in to provide you with the legal defense and financial resources to protect your career and reputation. More importantly, having malpractice insurance in place can give you the peace of mind you need to focus on what matters: your patients’ wellbeing.