Other Insurance Policies for Hypnotherapy Businesses
Additional policies, riders, endorsements, and coverage can be obtained for a variety of individual circumstances, including damage to business property, exposures associated with automobile use in the course of business, loss of business income, and more. Let’s discuss other types of hypnotherapy insurance coverage you’ll find useful.
Commercial Property Insurance
Commercial property insurance is very useful if you’re running a hypnotherapy clinic instead of working for one. This insurance will help you recover losses if the following happens:
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| Building Destruction | Building Damage |
| A fire will occur and burn your hypnotherapy clinic to ashes. Storms and typhoons can also destroy your hypnotherapy clinic. When any of these happens, commercial property insurance allows you to start all over again. It will reimburse your losses based on the actual cash value or replacement cost of your destroyed hypnotherapy clinic | Fire, extreme weather, theft, vandalism, and other covered perils might only damage your hypnotherapy clinic’s structures. In such a situation, commercial property insurance will reimburse losses based on the replacement cost or actual cash value of damaged roofing, signage, doors, gutters, and others |
Your hypnotherapy clinic can get more from commercial property insurance if you decide to get the additional coverages it offers. Such additional coverages are:
Stocks and contents coverage - Stocks and contents coverage is insurance for the valuable items inside your hypnotherapy clinic. Items covered are only those considered as non-business equipment and tools. With that said, if CCTV cameras, furniture, important documents, television, and other items inside your hypnotherapy clinic become damaged or lost due to theft, vandalism, extreme weather, and other covered perils, stocks and contents coverage will reimburse your losses.
Business equipment and tools coverage - A hypnotherapist, such as you, uses numerous business equipment and tools to provide a service. The job of business equipment and tools coverage is to reimburse your losses if hypnotherapy devices become lost or damaged due to theft, fire, vandalism, and other covered perils
Remember that commercial property insurance doesn’t cover earthquakes, floods, and mudslides. If your hypnotherapy clinic is in an area prone to these, consider getting earthquake insurance, flood insurance, and mudslide insurance. These are available as stand-alone policies. However, the majority of insurance companies offer earthquake, flood, and mudslide insurance as a floater or endorsement to commercial property insurance.
Replacement Cost vs Actual Cash Value
Exactly how much money you can get from commercial property insurance depends on the replacement cost or actual cash value of the scheduled property. The bullet below briefly discusses the difference between actual cash value and replacement cost:
Actual cash value - Actual cash value means that the reimbursement you’ll get through commercial property insurance will be equal to the depreciated worth of the scheduled property. For example, if your hypnotherapy clinic is worth $300,000 and it depreciates 3% until burning to ashes, commercial property insurance will give you $90,000.
Replacement cost - Replacement cost means that the reimbursement you’ll get through commercial property insurance will not take depreciation of the scheduled property into account. So if your $300,000 hypnotherapy clinic burned, you’ll also receive $300,000 from the carrier underwriting your commercial property insurance
What Business Property Can’t You Cover with Commercial Property Insurance?
Commercial property insurance won’t provide coverage to plants, trees, and other installations around your hypnotherapy clinic. Also, it won’t cover credit cards and cash that got stolen or damaged while inside your clinic’s commercial space.
Workers Compensation Insurance
Workers' compensation insurance is a useful insurance for hypnotherapists and hypnotherapy clinics. This covers all resulting expenses when an employee suffers from a work-related injury or disease.
| Coverage | Function |
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Employee Treatment/Medical Procedure | Common work-related injuries in hypnotherapy are carpal tunnel, eye strain, and repetitive motion injuries. When an employee suffers from any of these, workers' compensation insurance will pay shoulder all of the cost of the required medical treatment/procedure |
Hospitalization | Work-related accidents will happen that will result in an employee being hospitalized. Workers' compensation insurance also covers this regardless of how costly the bills may be and where the employee is admitted |
Medication | Upon sustaining a work-related injury or disease, an employee of your hypnotherapy service business might need medicines. Workers compensation insurance also takes care of this and will provide the money your employee needs |
Rehabilitation | Your employee might need rehabilitation to recover from a work-related injury or disease. Workers' compensation insurance also covers this. Specifically, it will pay for therapist fees, rehabilitation equipment, and other related expenses |
Lost Income Compensation | Healing from an injury is to stop working for a while. Workers' compensation insurance will help you compensate for the lost earnings of an injured or sick employee. Lost income compensation will be equal to two-thirds or 67% of the average weekly wage |
Death Benefits | Workers' compensation insurance provides death benefits if your employee dies from his injury or sickness. Death benefits include but are not limited to funeral payments and allowance to dependents |
Commercial Auto Insurance
Commercial auto insurance for hypnotherapists and hypnotherapy businesses provides coverage for an owned vehicle that’s being used to transport employees, haul supplies, meet clients, and other related purposes. This provides the following protection:
| Coverage | Function |
|---|
Auto Liability Coverage | Auto liability coverage in commercial property insurance kicks in when your commercial vehicle causes an accident and injures third parties or damages properties. If a claim is filed, this will cover the medical expenses of people injured and reimburse the owners of damaged property |
Physical Damage Coverage | Physical damage coverage will mitigate the hefty cost of vehicle repair and parts replacement. This is available as collision coverage or comprehensive coverage. Collision physical damage coverage will cover parts repair or replacement if the vehicle you’re using for hypnotherapy service becomes damaged after colliding with a vehicle or object. Comprehensive physical damage coverage, in contrast, will cover parts repair or replacement if the fire, hail, winds, theft, vandalism, and other covered perils damaged the vehicle |
MedPay/Personal Injury Protection | MedPay and personal injury protection take care of the driver and passengers who get injured after the commercial vehicle causes an accident or gets involved in an accident. If you get involved in an accident, personal injury protection will cover your medical treatment, ambulance fees, after-hospital visits, and funeral expenses (in case of death). On the other hand, MedPay will only cover your medical treatment and funeral expenses |
Business Interruption Insurance and Loss of Income Coverage
There are many uncertainties when working as a hypnotherapist or running a hypnotherapy clinic. Some of these uncertainties might force you to stop work or close business for a while, resulting in loss of income. And so, it might be a smart decision if you decide to get business interruption insurance or loss of income coverage.
Business interruption is what you need to get if you’re running a hypnotherapy clinic. This will supplement lost income if you need to stop business operations to relocate, renovate, or let an economic crisis pass by. On the other hand, if you’re working as a hypnotherapist, consider getting loss of income coverage. Loss of income coverage will supplement lost income if you can’t work due to a disability.
Business interruption insurance provides money for 30 days. However, you can extend the duration to 360 days through an endorsement. On the other hand, loss of income coverage will last 120 days.
Employee Dishonesty Insurance
Get employee dishonesty insurance if you’re worried about the losses resulting from an employee’s crime. In practice, employee dishonesty insurance will reimburse financial losses if an employee commits fraud, social engineering, embezzlement, destruction of money and other securities, etc. Note that employee dishonesty insurance comes two types:
Discovery based - A discovery based employee dishonesty insurance will cover incidents the moment they’re discovered. Coverage applies even if the discovery happened while the policy is active or has expired
Loss sustained - Loss sustained employee dishonesty insurance will only cover incidents reported to the insurance company while the insurance is active.
Employer’s Liability Insurance
An employee files a claim for negligence upon experiencing a hypnotherapy-related injury or disease. Employer’s liability insurance helps with this by covering attorney fees, administrative costs, and other legal expenses. Before getting employer’s liability insurance, check with the workers' comp department of your state. It’s because your state might have a worker comp law that prohibits employees from suing employers with workers' compensation insurance. And if this is the case, investing in employer’s liability insurance might be a waste of money.
Hypnotist Insurance
To this point, we have considered the insurance available to hypnotherapists and hypnotherapy businesses. But what about hypnotists who provide the same service but are not certified? The insurance available for hypnotists is tailored hypnotist insurance that provides coverage in the event of an unexpected injury, damages, etc. Professional liability, general liability, commercial auto insurance, and other specialized insurance products are included.
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 a form 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.
