Mental Health Counselor Insurance: Cost & Quotes From $25/mo

The human mind is fragile. And hardships in one’s life decisions, career goals, or even relationship with peers can result in stress, paranoia, and lack of sell. As a mental health counselor, you are handling people who are at their most vulnerable. As a result, you take on a lot of responsibility and risk. 

You need a liability insurance for mental health counselors if a client oversteps their boundaries or if you face a legal claim. There are different insurance covers you can get to insure against these risks. This post discusses some of these covers and discloses the median cost you can expect to pay for some of these premiums.

General Liability Insurance for Mental Health Counselors

CoverWallet NEXT (Best)Thimble HiscoxThe Hartford
Per occurrence limit $1,000,000$1,000,000$1,000,000/$2,000,000$1,000,000$1,000,000/$2,000,000
Aggregate limit $2,000,000$1,000,000/$2,000,000$1,000,000/$2,000,000$2,000,000$1,000,000/$2,000,000
Products and completed operations aggregate limit $2,000,000
Advertising injury coverage aggregate limit $1,000,000$1,000,000$1,000,000$1,000,000$1,000,000
Tenant’s legal liability coverage limit $100,000
Waiver of subrogation included?YesNoIncludedCan be includedNo
Hired/non-owned auto liability coverage included?YesNoExcludedCan be includedCan be included
Equipment breakdown floater included?No YesYesYesCan be included
Can you get a certificate of insurance online?YesYesYesYesYes
Name additional insureds?YesYes

General liability insurance covers most of the typical business risks. They can include customer injury, advertising injury, and customer property damage. A client could slip into your psychology clinic and even break an arm. This mental health counselor insurance can cover such risks.

Additionally, you may pour coffee on the laptop or smartphone of your client. These items may be expensive to replace, and with general liability insurance, you can cover such costs. Some of these accidents happen even to the best mental health counselors, so it is essential that you won't be naïve and assume that you won't need general liability insurance for mental health counselors cover.

What Does a General Liability Cover?

General professional liability insurance for mental health counselors can cover you for the following;

  • Claims of accidental damage to people's property, slander and libel accusations

  • Fire damage to the landlord's premises

  • Legal fees, medical bills, and compensation to the injured third party

  • Copyright infringement claims 

Can a General Liability Insurance Cover My Employees?

Your client may sue you for injuries or property damage caused by your employees. The patient can sue under the principle of vicarious liability. The doctrine assumes that you are eligible for your employees' negligence. Therefore, you can be sued for any damage they cause to your patients. The good news is that this LMHC liability insurance can cover your employees, including volunteers and your temporary staff.

Malpractice Insurance for Mental Health Counselors

CoverWallet NEXT Thimble (Best)HiscoxThe Hartford
Per occurrence limit $1,000,000$1,000,000$1,000,000/$2,000,000$1,000,000$1,000,000
Aggregate limit $2,000,000$1,000,000/$2,000,000$1,000,000/$2,000,000$1,000,000$2,000,000
Name additional insureds?YesYesYesYesYes
Waiver of subrogation included?YesNoYesCan be includedNo
License defense coverage included?NoNoNoNoNo
HIPAA coverage included?NoNoNoNoNo
Sexual harassment coverage included?NoNoNoNoNo
Deductible $500$500$500$50/$10,000$500

As a mental health counselor, you may face a lot of challenging ethical decisions. You have to decide if a third party is facing a threat from your patient and whether you should report it to the police. The decisions you make may have certain legal hurdles. These legal challenges may cost you a fortune, and you should get malpractice insurance. Malpractice insurance offers you the following;

  • Legal help by hiring you a lawyer who has a comprehensive understanding of your state's malpractice laws. A good lawyer can give you a zealous defense and if the lawsuit is frivolous, the courts will dismiss it in no time. It is essential to have an experienced lawyer because he/she can develop the right strategies to ensure a lawsuit falls in your favor

  • Intervening to ensure that a patient doesn't sue you. An insurer may write letters to protect you from a lawsuit

  • Payment for the lawsuit. An insurer can prevent your practice from being bankrupt due to a settlement or a verdict

What Are Some Scenarios Leading to a Malpractice Suit?

When you make some professional decisions that harm your client, you can be subject to a malpractice suit. Malpractice suits can be very problematic when mental health counseling without insurance as you might be required to shoulder hundred or even millions worth of settlement. Some of the common scenarios leading to a malpractice suit are

  • Failing to report child abuse

  • Neglecting the duty to warn. Some therapists have been subject to malpractice lawsuits when their clients have committed violent acts

  • Failure by the therapist to protect their client, for example, failure to prevent suicide

  • Providing advice that does the opposite of what you intended

These issues may happen at any time. It’s even possible for clients to sue even though the therapist may not have done anything. Therefore, it is essential you get a professional liability insurance for mental health counselors.

What Are the Benefits of a Malpractice Insurance?

Malpractice insurance can help you in a lot of ways.  It can help you spend less time worrying and focus on treating your patients. Also, malpractice insurance for mental health counselors can help guarantee financial security as it caters to investigation fees, settlements, and court costs, which can be hefty.

Litigating a malpractice suit can demand hundreds if not thousands of dollars. Also, it can prevent you from operating your business because it is time-consuming. However, professional liability insurance for mental health counselors can save you from this by getting you a lawyer and handling all the issues with the trial. You can, therefore, continue assisting patients without worrying about losing a significant amount of finances.

Also, some of the complaints may be before a licensing board, and the insurance company can represent you before the licensing board. The lawyer can even save your practicing license, which many therapists lose due to malpractice complaints. Therefore, LMHC malpractice insurance is one you must get.