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

CoverWalletNEXT (Best)ThimbleHiscoxThe 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?NoYesYesYesCan 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

CoverWalletNEXTThimble (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

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.

A woman mental health counselor in a suit jacket.

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Commercial Property Insurance for Mental Health Counselors

CoverWalletNEXT (Best)ThimbleHiscoxThe Hartford
Building coverage limit (minimum)$50,000$200,000$25,000/$500,000$25,000$35,000
Contents coverage limit (minimum)$50,000$15,000$25,000/$500,000$25,000$35,000
Outdoor signsExcluded$2,500ExcludedExcludedExcluded
Accounts receivable ExcludedExcluded$5,000/$10,000IncludedExcluded
Money and securitiesExcluded$2,500$1,000IncludedExcluded
Lock and keys Excluded$2,500ExcludedExcludedExcluded
Business interruption floaterExcludedIncludedIncludedIncludedExcluded
Equipment breakdown floaterExcludedIncludedExcludedExcludedExcluded
Inland marine insurance floaterExcludedExcluded$10,000ExcludedExcluded
Employee dishonesty floaterExcluded$5,000$2,500IncludedExcluded

Commercial property insurance protects your property against theft, fire, natural disasters, and other covered perils. Usually, commercial property insurance will be bundled together with other insurance. As a mental health counselor, you may have patients with violent tendencies. A patient may decide to steal from you or burn your place of work. Commercial property insurance can cover you against these perils.

What are Some of the Factors Considered in a Commercial Property Insurance?

An insurance company looks at various factors before determining how to cover your commercial property. They include;

  • The location of your premises

  • Construction material- Buildings made of combustible material have higher premiums, while those with fire-resistant materials can earn a discount.

  • Occupancy- An office building may have fewer premiums than a restaurant because an office building is less likely to burn. Also, a building with tenants may be subject to more premiums.

  • The office equipment you have

Do You Need a Commercial Property Insurance When You Have a General Liability Insurance?

General liability insurance only covers damage to the property of third parties. It doesn't cover any damage that occurs to your property. For example, if a client was to break your table in a fit of anger, this LMHC insurance coverage won't cover such damage. However, the insurance company can cover such damage if you have commercial property insurance coverage.

Business Owner’s Policy for Mental Health Counselors

CoverWalletThimble NEXT Hiscox (Best) The Hartford
General liability aggregate limit $2,000,000$1,000,000/$2,000,000$1,000,000/$2,000,000$1,000,000/$2,000,000$1,000,000/$2,000,000
Commercial property coverage limit $50,000$25,000/$500,000$200,000$25,000$35,000
Optional policies can be added?YesYesYesYesYes
Name additional insureds for free?YesYesYesYesYes
BOP discount?YesYesYesYesYes

A business owner’s policy bundles two policies together (general liability insurance and commercial property insurance). Bundling the policies together is cheaper than buying both policies separately. In summary, a business owner's policy covers what the two insurances cover.

What Does a Business Owner’s Policy Shield Against?

The insurance covers against;

  • Damage to your business property

  • Any injuries that may happen to your client and their property

  • Advertising injuries

  • Forced closure

What Businesses Are Eligible for a Business Owner’s Policies?

A business owner's policy is not a viable option for every type of business. They are certain conditions that a company must meet, including;

  • Have less than 100 employees

  • Have a small workplace

  • Have yearly revenue of less than $1 million

  • Operate in a low-risk industry

Commercial Auto Insurance for Mental Health Counselors

If your practice owns motor vehicles, you must ensure that you get commercial auto insurance. Even though your employees are competent and skilled drivers, accidents happen and may lead to another motorist becoming injured or your vehicle being totaled. These can cost your business a fortune, so you need a commercial auto insurance.

How Does Commercial Auto Insurance Cover Your Business?

Auto insurance can pay for your lawsuits, medical costs, and any other medical costs resulting from a car accident by your vehicle. It can also cover vandalism, vehicle theft, and damage from storms and hails.

Can Commercial Auto Insurance Cover Personal Vehicles?

Commercial auto insurance cover only covers business-owned vehicles. It may not protect you if you have an accident while driving for work. You can get hired, and non-owned auto insurance covers which can cover you and your employees while going in a leased, rented, or personal car to conduct company business.

Counseling Without Insurance

Counseling without insurance can be expensive, Moreover, you won’t have a financial cushion in case a lawsuit if filed by clients. 

When seeking counseling without insurance, it is important to consider several factors beyond just the availability of insurance coverage. While having malpractice insurance can protect from professional misconduct lawsuits, you should also inquire about  property insurance and equipment insurance for additional protection. 

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Cost of Insurance for Mental Health Counselors

Cost per MonthCost per YearDeductible
General liability insurance$30$360$0-$500
Malpractice insurance$40$480$500-$1,000
Commercial property insurance$60$720$1,000-$2,000
Business owner's policy$90$1,080$1,500
Commercial auto insurance$55$660$500-$1,000

The average cost of insurance for mental health counselors is $30 per month or $360 per year for a $1 million general liability coverage. Factors that affect the cost of premiums are location, business history, claims history, deductibles, and coverage limits. 

Cost per MonthCost per YearBest for
NEXT$20$240Best overall; Fastest general liability insurance for mental health counselors
The Hartford$23$276Small businesses looking for comprehensive insurance coverage
CoverWallet$25$300Comparing mental health counselor insurance quotes online
Tivly$28$336Comparing mental health counselor insurance quotes over the phone
Hiscox$33$396Mental health counselors looking to deal with a company with unrivaled experience in offering insurance covers
Thimble$36$432Mental health counselor looking to protect their business from financial loss and negative reputation

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Best Mental Health Counselor Insurance Companies

There are many insurance companies offering insurance to mental health counselors. Finding an insurance company that covers you as you would like to be covered may be challenging. Below, we cover some of the best mental health insurance companies offering the best malpractice insurance for mental health counselors. Read to know their pros, cons, and cost for a $1 million worth of coverage:

NEXT Mental Health Counselor Insurance


  • Best overall

  • Issues an online proof of insurance instantly

  • Fastest general liability insurance for mental health counselors 

  • Great customer service and reputation

  • Excellent rates

  • Outstanding value for money

  • Get a 10% discount if you buy two or more policies 


  • Couldn’t find any 

NEXT is an insurance company dedicated to covering small businesses. They aim to ensure that your business saves big and has a lot of covers that your practice can use. At NEXT, you can get general liability coverage, workers' compensation coverage, business owner's policy, and Commercial Auto Insurance cover, among others. From their website, you can get an instant quote on what they charge for their various covers.

Best for: Best overall; Fastest general liability insurance for mental health counselors

Average cost: $20 per month 

Our rating: 10/10

The Hartford Mental Health Counselor Insurance


  • Experienced insurance company

  • Affordable policies

  • ·         Comprehensive covers


·         Only operates online

The Hartford is an insurance company that provides business insurance covers that you can utilize in your mental health counseling department. Hartford boasts a lot of experience with at least more than 200 years of service to their customers. Currently, Hartford covers more than one million small businesses.

The insurance provided by Hartford can help protect your business from employee-related risks, legal liability, and property damage. Some types of business insurance you can get include; commercial auto insurance, general liability insurance, and malpractice insurance, among others.

Best for: Small businesses looking for comprehensive insurance coverage

Average cost: $23 per month

Our rating: 10/10

CoverWallet Mental Health Counselor Insurance


  • Deals with multiple insurance companies

  • Offers wide range of insurance covers

  • Easy application process


  • Rely on third-party insurers

CoverWallet is yet another insurance company dedicated to serving small businesses needs. They tailor insurance covers to reflect the needs of your small business to ensure you are fully covered against your risks. They have multiple insurances covers that you can benefit from;

  • General liability insurance

  • Commercial property

  • Workers Compensation

  • Business Owners Policy

  • Malpractice Insurance

Best for: Comparing mental health counselor insurance quotes online

Average cost:  $25 per month 

Our rating: 10/10

Tivly Mental Health Counselor Insurance


  • Protects against many risks

  • Affordable options

  •  Easy online application


  • Limited coverage options

Tivly guarantees protection from many of your practice's risks, such as malpractice, theft, property loss, business closure, vandalism, theft, and even fire. Some of the available coverages are business hazard insurance, general liability insurance, business owner's policy, commercial auto insurance, commercial umbrella insurance, and malpractice insurance. All these covers are affordable and reliable. Call now to compare quotes over the phone. 

Best for: Comparing mental health counselor insurance quotes over the phone 

Average cost: $28 per month 

Our rating: 9/10

Hiscox Mental Health Counselor Insurance


  • Has a refund policy

  • Can get quotes instantly

  • Handle claims quickly


  • Not ideal for large businesses

Hiscox is another company that rivals many in terms of experience and competency. It boasts over 100 years of experience and customizes many insurance policies to fit your business needs. Hiscox collaborates with the best underwriters to ensure that the insurance brokers are afforded the best possible level of coverage. However, Hiscox may not be the best insurance company for your practice because unlike the others it doesn't specialize in small businesses but instead also offers insurance coverage for homes.

Best for: Mental health counselors looking to deal with a company with unrivaled experience in offering insurance covers

Average cost: $33 per month 

Our rating: 9/10

Thimble Mental Health Counselor Insurance


  • Best for small businesses

  • Wide array of insurance covers

  • Short-term coverage available

  • Numerous add-ons to general liability insurance


  • You can only access their customer service online

Thimble has a strong reputation for helping out small businesses. It has a variety of insurance covers such as; general liability cover, malpractice cover, business owner's policy, and commercial property insurance. You can access the Thimble insurance company services online and cover your business from home.

Best for: Mental health counselor looking to protect their business from financial loss and negative reputation

Average cost: $36 per month 

Our rating: 9/10


Having insurance coverage can help you solve issues. Consider getting some of the covers this post has discussed, and you won't have to worry about lawsuits bankrupting the practice you have worked so hard to establish.

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