Hypnotherapy Insurance & Hypnosis Insurance: Quotes From $5

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Hypnotherapy uses hypnosis techniques to create a patient state of mind during therapy or counseling treatments by licensed medical health practitioners. Hypnosis is also a form of entertainment. There is a subsection of practitioners who will need to consider the potentially unique insurance requirements of hypnosis when used in non-therapeutic situations.

All service industries and business professionals, including hypnotherapists, hypnotists and businesses offering hypnotherapy, must carefully consider the need to have adequate insurance coverage. As with any medical procedure, hypnosis carries with it the possibility of an unpredictable outcome that requires risk mitigation strategies, including appropriate hypnotherapy insurance coverage, similar to the provisions of other complementary therapy insurance practices such as reflexology insurance, acupuncture insurance, chiropractor insurance or aromatherapy insurance.

Hypnotherapy Insurance

The American Hypnosis Association and the Hypnotherapists Union Local 472 are the organizing bodies for hypnotherapist professionals in the US. Certification under the auspices of these organizations includes some hypnotherapy insurance provisions, however, there are several different types of insurance for hypnotherapists that will need to be separately considered. In addition, the level of hypnotherapy insurance coverage provided by professional certification may not be regarded as sufficient in every circumstance.

Let’s look at the typical components of hypnotherapy business insurance coverage:

• Professional Liability Insurance for Hypnotherapists (includes malpractice coverage)

• Commercial General Liability Insurance for Hypnotherapy Business

• Damages to Premises 

• Commercial Automobile Insurance

• Product Liability Insurance for hypnotherapists

• Commercial Property Insurance for hypnotherapy business

Professional Liability Insurance for Hypnotherapists

Although Professional Liability Insurance (known as an E&O policy as it covers “errors and omissions”) for hypnotherapists may be provided through your national or regional accreditation body, it is necessary to review the professional liability hypnosis insurance policy to ensure it covers the following essential components:

1. Patient claims and lawsuits (claims of malpractice, etc.)

2. Unintentional injury, including negligence, mistakes, oversight, errors

3. Financial loss incurred by others due to service provision

4. Legal expenses, including costs of settlement or judgment

5. Claims of undelivered services and missed deadlines

Professional Liability Insurance coverage does not cover the following situations:

• Dishonest conduct

• Criminal actions, including fraud

• Malicious acts, including abuse or discrimination

• Bankruptcy and insolvency

• Claims between two parties insured under the same policy

• Patient injury or property damage (this is covered under a General Liability policy)

• Employee injuries (this is covered under a Workers’ Compensation policy)

• Damage to business property (this is covered under a Business Owner or separate policy)

• Vehicle use

• Contingent bodily injury (covered under Product Liability Insurance)

• Events occurring prior to the policy term

Commercial General Liability Insurance for Hypnotherapy Professionals & Business

Every business needs to hold a Commercial General Liability Insurance policy to cover routine entity operations and the consequences of these activities. Hypnotist insurance is covered under the National American Industry Classification System (NAICS) category for Offices of Physical, Occupational, and Speech Therapists and Audiologists.

General liability coverage typically includes:

1. Lawsuits and claims filed against the business

2. Unintentional injury

3. Property damage

4. Theft

5. Bodily injury

6. Advertising errors

7. Reputational harm

In some cases, a general liability policy is combined with a business property policy, creating a consolidated Business Owner’s Policy (BOP). BOP coverage can be a means of bundling coverage to reduce premiums or expand inclusions.

Other Insurance Policies for Hypnotherapy Businesses

Every business must consider the specifics of its services, locations, employees and potential risks. Additional policies, riders, endorsements and coverage can be obtained for a variety of individual circumstances, including damage to rented premises, automobile use in the course of business and claims of indirect injury at a later date.

A critical insurance consideration for any employer is workers’ compensation coverage. These policies are separate from the policies outlined above and are normally required by regulatory governing bodies.

Read More: Physical Therapy Insurance

Hypnotherapy Insurance Cost

Hypnotherapy insurance cost is about $30 per month, or $360 per year, on average. However, as with any coverage, costs vary, and must depend on the type of policies required.

For Professional Liability Insurance, there may be a relatively low cost to the business if the hypnotherapist is accredited by a recognized body that carries a policy for all certified professionals under their jurisdiction. If the claim payout maximum is considered insufficient, additional coverage can normally be arranged for an additional premium. For the standard $1M per incident and $3M aggregate annual coverage, annual premiums can be expected to be under $200.

It is important to understand your state’s legal requirements regarding medical practitioner insurance coverage and to confirm with your broker that your business is adequately covered. Annually, it is prudent to review your policy with a broker familiar with the hypnotherapy industry to be certain that you are adequately mitigating your risks.

General Commercial Liability Insurance (for coverage of $1M per incident and $2M aggregate annually) for a small business will depend on the size of the company, its location(s), the number of employees, historical annual sales, insurance claim history and the underwriter’s assessment of industry risk. Although often as low as $30/month, a general liability hypnosis insurance policy will require hypnotherapy insurance quote comparison. By clicking the 'Get Quotes' button and completing the questionnaire, you can compare hypnotherapy business insurance quotes online from the best hypnotherapy insurance companies and choose the best coverage options at the best possible rates thanks to the competition between them.

Hypnotist Insurance

To this point, we have considered the insurance requirements of hypnotherapists and their businesses. But what about hypnotists who may operate in a different manner, such as for entertainment purposes? 

The Insurance requirements for hypnotists and what might be referred to as ‘hypnosis insurance,’ in the event of an unexpected injury, damages, etc., are categorized with hypnotherapy. Therefore, professional liability, general commercial liability, vehicle insurance and other specialized insurance products are applicable, as outlined previously in this article, and should be considered.

Local regulations covering hypnosis will need to be carefully understood and, if an individual is running a business involving the use of hypnosis without belonging to an accredited body of professionals, it is likely that insurance companies will have many questions, may refuse coverage and, certainly, will demand high premium compensation. Careful consideration of industry accreditation should be undertaken before approaching insurance brokers and underwriters.

Hypnosis has transfixed our imaginations for generations, as popular entertainment and as a credible source of alternative medical therapy for a wide variety of disorders and conditions. Qualified hypnotherapists and hypnotists value the professional credence and peace of mind a well-planned insurance and risk mitigation strategy provides for all stakeholders, including those employing their services.