Professional Liability Insurance for Counselors

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As a counselor, you have both a very rewarding but also stressful career. You get to help people become better versions of themselves, but with this big responsibility comes even more significant risks. Counselors should always protect themselves with the proper type of insurance plan, not only to make sure you don’t become bankrupt from a lawsuit that can costs upwards of thousands of dollars, but also for your peace of mine. Professional Liability insurance for counselors, also sometimes called Malpractice insurance, is a must if you work in the industry. The policy can cover mental health counselors, vocational counselors, social workers, therapists, and life counselors. It is meant to provide coverage for any errors and omissions you may make within the course of your profession.

What Are Common Professional Liability Risks for Counselors?

A counselor has a lot of responsibility. You help to shape people’s lives, change their perspectives on whatever they may need assistance with, or even help them determine how to perform their job duties if that is the type of service you offer. Regardless of the kind of counselor you may be, the risks are the same. Because you are in the business of offering advice, you have a chance of being accused of not offering the right treatment. A common claim that can arise is a failure to diagnose, or diagnose accurately, as well as negligence, regardless of whether or not it is real or perceived. What if you accidentally tell your spouse something about a client? That would be a definite confidentiality breach. All of these things can be covered with Professional Liability insurance for counselors.

What is Covered by Professional Liability Insurance for Counselors?

There are many coverages available to give you great peace of mind for your Professional Liability insurance for counselors. Some of these coverages are:

Negligence – Whether intentional or not if a claim is made against you, the Professional Liability insurance policy will provide coverage.
Defense costs – Even if you are found not guilty or no settlement is awarded to the plaintiff, you will have lawyer fees, courts costs, or any other associated fees. These alone can cost you thousands of dollars, so protect yourself and your business by purchasing this essential insurance policy.
Prior acts – When you switch insurance companies, it is a good idea to make sure your new policy covers any past claims that may arise. CoverWallets trusted advisors can help you find a policy that offers this critical component.

How Much Does Professional Liability Insurance for Counselors Cost?

Many different insurance companies offer Professional Liability insurance for counselors and will have different prices. You can expect to pay anywhere from $400-$800 annually for a liability limit of $1,000,000. If you have a business with employees, you can expect to pay more around $1,000-$3,000. Another factor that can influence pricing for this policy is if you choose to have a deductible. The lower the deductible, the higher the price.

Common FAQ’s About Professional Liability Insurance for Counselors

Will I be able to be covered if I am not licensed? Yes, most of the counselors that we work with and provide policies for have a lot of education and certifications, but not all are licensed.
What if I prescribe medications? The Professional Liability insurance for counselors is for those who do not prescribe medications.
Can this replace my General Liability policy? If you are having clients come to a location for treatment, General Liability is a must. It will provide coverage for bodily injury and property damage. A client can easily slip and fall and could sue you for any injuries they sustain on your premises.