With mental health increasingly being recognized as equally as important as physical well-being, psychologists are likely to continue to have a steady stream of patients. No matter what type of practice you have, psychologists, counselors, and therapists provide essential services to their patients and help them work through their problems. Unfortunately, though, even the best in their field can make a mistake or leave a patient dissatisfied. Like any medical professional, psychologists are at risk of being sued for the care they provide. Additionally, there are various potential liabilities by simply operating out of an office. The cost of a lawsuit can be extremely damaging to your practice and hinder your ability to maintain operations, as well as your potential to bring in future patients. The best way to protect yourself and your practice is with adequate psychologist insurance coverage.

This guide will provide all the information you need about psychologist insurance costs to be able to make an informed decision about your policy.

We Cover in This Guide

• How much does psychologist insurance cost?

• What is psychologist insurance?

• What does psychologist insurance cover/not cover?

• Benefits and risks

• Types of insurance you may need

• Tips for buying

• FAQ

• Summary

How Much Does Psychologist Insurance Cost?

Psychologist insurance costs range from $39 to $59 per month depending on your location, practice, experience, patients, and client focus. Below are some examples of typical policies that meet most coverage needs.

• Basic (essential coverages for psychologists): $39 per month for general liability (GL)
• Standard (protect your business against professional errors): $59 per month for general liability (GL) + errors & omissions (E&O)
• Pro (get protected against employment-related issues): $59 per month for general liability (GL) + errors & omissions (E&O) + workers’ compensation

These policies may not provide all the coverage necessary for your practice. Most providers allow you to customize a plan with the insurance you need to meet your specific requirements.

What is Psychologist Insurance?

Psychologist insurance is a crucial tool to help you protect yourself and your practice from the various risks involved in providing care for your patients and operating your business. Whether you are treating adults or children with depression, anxiety, grief, substance abuse issues, coping with a chronic illness, or any number of other challenges, a legitimate claim of negligence or simply a dissatisfied client can potentially result in a lawsuit. Such malpractice claims can be costly and time consuming, and be extremely harmful to you professionally. Psychologist insurance policies cover the cost of mounting a legal defense against such claims and potential damages. Any psychologist with any kind of practice, no matter the size or specialty, needs coverage.

What Does Psychologist Insurance Cover/Not Cover?

While the risks for each particular psychologist vary depending on their practice and clients, psychologist insurance coverage is wide enough to offer protection for many common scenarios related to your practice. They can include claims of professional harm from advice or prescribed medications; or a patient or employee tripping and falling in your office. Most policies cover these scenarios and others that fall into the following categories:

• Third-party bodily injury

• Third-party property damage

• Personal injury

• Advertising injury

• Products/completed operations

• Professional negligence

• Retroactive claims (previous contracted work)

• Subcontractor errors

• Work-related accidents and illness

• Ongoing medical care (such as rehab)

• Missed wages during recovery

• Legal fees and court costs

While typical policies provide a wide array of covered scenarios, they do not include everything. Certain situations may require additional insurance. They can include the following:

• Damage to your own assets and equipment

• Claims of injury and liability from on-the-job auto accidents

• Harm from hacking resulting in patient information exposure

Benefits and Risks

Psychologist insurance offers various benefits to cover risks, including:

• Protecting business assets: Depending on your number of clients, one claim can potentially wipe out all your earnings and destroy your practice. Psychologist insurance will help cover these risks.

• Cover legal expenses: If a patient, third-party, or employee sues you, you are protected from the costs of fighting lawsuits and the damage if you are found liable.

• Peace of mind: ​Knowing that you are covered in the worst-case scenario allows you to focus on your patients without being preoccupied with what could go wrong.

Types of Insurance You May Need

• General Liability Insurance: Protects you against lawsuits, investigations, settlements, and damages from third-party claims of property damage, personal injury, bodily injury, and other related scenarios.

• Commercial Auto Insurance: Helps pay for lawsuits, medical expenses, and legal fees associated with car accidents related to business activities.

• Commercial Property Insurance: Covers the cost of damage to your own property, equipment, and assets.

• Workers’ Compensation Insurance: Covers medical costs associated with employee injury and illness that occur while on-the-job.

• Medical Malpractice Insurance: Provides coverage for claims of wrongful practices that result in property damage, bodily injury, and medical expenses.

• Cyber Liability Insurance: Covers potential claims from data breaches of patient information.

Tips for Buying

When considering psychologist insurance cost, keep the following in mind before signing a contract:

• Bundle policies: Providers will often provide discounted rates when you combine certain key coverages like a business owners policy (BOP) with general liability and commercial property.

• Work with an independent agent: An independent insurance agent will help direct you toward providers with the best rates and the most experience covering psychologists and others providing mental healthcare.

• Identify your risks: Be sure to thoroughly analyze your practice, taking into account your patients and employees, to identify potential risks.

• Compare quotes: Policy costs vary between insurers. Consider at least three quotes to find the best rates and coverage.

FAQ

- What is the difference between claims-made vs. occurrence coverage?

Claims Made Policy: Covers any claim while the policy is active.

Occurrence Policy: Covers liabilities if the incident occured while the policy was active, even if it had lapsed at the time the claim was made.

- Does psychologist insurance cover defending yourself before state licensing boards?

Yes, most policies cover the costs for dealings before regulatory boards. Check with your provider to make sure it is included in your policy.

- How do I protect myself against extremely large claims?

Basic psychologist insurance may have certain limits. If you think your practice carries risks of a potentially high claim, consider umbrella insurance. It is a way to cover damages above the limits of typical policies.

Summary

Psychologist insurance protects your business against the potential losses and damage from the various risks involved in your practice.

By understanding psychologist insurance costs and determining your needs, you will know that your policy covers all the scenarios you may face and feel secure that your business is safe.