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.
| CoverWallet | NEXT (Best) | Thimble | Hiscox | The 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 | $1,000,000 | $1,000,000 | $1,000,000 | $1,000,000 |
| 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 | $100,000 | $5,000 | $300,000 | $1,000,000 |
| Waiver of subrogation included? | Yes | No | Included | Can be included | No |
| Hired/non-owned auto liability coverage included? | Yes | No | Excluded | Can be included | Can be included |
| Equipment breakdown floater included? | No | Yes | Yes | Yes | Can be included |
| Can you get a certificate of insurance online? | Yes | Yes | Yes | Yes | Yes |
| Name additional insureds? | Yes | Yes | Yes | Yes | Yes |
| Deductible | $0 | $0 | $0 | $0 | $0 |
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.
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
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.
| CoverWallet | NEXT | Thimble (Best) | Hiscox | The 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? | Yes | Yes | Yes | Yes | Yes |
| Waiver of subrogation included? | Yes | No | Yes | Can be included | No |
| License defense coverage included? | No | No | No | No | No |
| HIPAA coverage included? | No | No | No | No | No |
| Sexual harassment coverage included? | No | No | No | No | No |
| 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
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.
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.
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| CoverWallet | NEXT (Best) | Thimble | Hiscox | The 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 signs | Excluded | $2,500 | Excluded | Excluded | Excluded |
| Accounts receivable | Excluded | Excluded | $5,000/$10,000 | Included | Excluded |
| Money and securities | Excluded | $2,500 | $1,000 | Included | Excluded |
| Lock and keys | Excluded | $2,500 | Excluded | Excluded | Excluded |
| Business interruption floater | Excluded | Included | Included | Included | Excluded |
| Equipment breakdown floater | Excluded | Included | Excluded | Excluded | Excluded |
| Inland marine insurance floater | Excluded | Excluded | $10,000 | Excluded | Excluded |
| Employee dishonesty floater | Excluded | $5,000 | $2,500 | Included | Excluded |
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.
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
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.
| CoverWallet | Thimble | 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? | Yes | Yes | Yes | Yes | Yes |
| Name additional insureds for free? | Yes | Yes | Yes | Yes | Yes |
| BOP discount? | Yes | Yes | Yes | Yes | Yes |
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.
The insurance covers against;
Damage to your business property
Any injuries that may happen to your client and their property
Advertising injuries
Forced closure
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
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.
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.
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 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.
| Cost per Month | Cost per Year | Deductible | |
|---|---|---|---|
| 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 Month | Cost per Year | Best for | |
|---|---|---|---|
| NEXT | $20 | $240 | Best overall; Fastest general liability insurance for mental health counselors |
| The Hartford | $23 | $276 | Small businesses looking for comprehensive insurance coverage |
| CoverWallet | $25 | $300 | Comparing mental health counselor insurance quotes online |
| Tivly | $28 | $336 | Comparing mental health counselor insurance quotes over the phone |
| Hiscox | $33 | $396 | Mental health counselors looking to deal with a company with unrivaled experience in offering insurance covers |
| Thimble | $36 | $432 | Mental health counselor looking to protect their business from financial loss and negative reputation |
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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:
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
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
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
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
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
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.
1 / 5
Use anyone except Employers. Period. They are non-transparent and shameful. After I complained long enough to warrant a call from a supervisor, the supervisor called back from a PRIVATE NUMBER (no caller ID), left a message that they are not reversing their decision (without any communication with me), and failed to leave a phone number for me to call back. She was hiding! They also fact find via email and phone calls, which is terrific for speed and communication. However, after setting a precedence of email or phone calls, they send time sensitive information via email, without any heads up... they are hoping you miss it and forfeit via expiration. Evil policies. Go elsewhere.
1 / 5
This place is an absolute joke of a company and should be ashamed of the way they conduct business. I was hurt on the job at the end of July and it took them just shy of 7 weeks to issue out a paycheck to me. Yes the amount was back dated but still. Not many have the luxury of not receiving a paycheck for almost 2 months. To top it all off, the original adjuster marked me down for the wrong state which caused a problem from the get go, I've had 3 different adjusters now since each one can't seem to figure out the simplicity of my claim. All my paperwork which includes, my job, house, and drs visits all are from the same state and city but yet some how I have been filed under a completely different state 1500 miles away. They do not answer your phone calls or emails no matter how many you leave. I've had to escalate my frustrations to the supervisors of each of these individuals in order to even get some kind of response. I've had more communication and information given to me about my claim from the customer service representatives then the actual adjusters.......... please tell me how that works?! A serious overhaul needs to happen here in order to serve your clients the way they deserve to be taken care of. 10/10 do not recommend this company to a single soul on earth
1 / 5
I have never had the displeasure of working with a more incompetent and disrespectful person in my life. I’m an injured worker and the adjuster that was assigned to my case was named Carrie Furgeson. In the past 6 weeks that I’ve been injured and out of work I have only been able to get ahold of her twice, not for lack of trying. I have left countless voicemails, countless emails, and she ignores them all. When I am finally able to get ahold of her I’m greeted with terrible customer service. She is rude, she talks over me and I’m hardly able to get a word in edgewise. She spelled my name wrong on my documents even after I spelled it for her properly countless times, this caused a whole new issue with my bank. I have bill collectors from the hospital calling me demanding payment and Carrie Furgeson won’t do a single thing to help, or to get them paid. All of my documentation is in Colorado, my job is in Colorado, my address is in Colorado, all my Dr offices and appointments have been in Colorado and Carrie still managed to hold my claim because she wasn’t sure what state she needed to file it under. It’s been 6 weeks since my Injury and my company still hasn’t received the wage paperwork to fill out so they can get me my correct wages. When she’s not ignoring me she’s answering my questions with “I don’t know” well I don’t know how she got this job, because apparently she doesn’t know anything about it. She is a disgusting morose individual inside and out and I genuinely wish her the worst in all of her future endeavors. I highly recommend you don’t use this company. Please if you are a business owner and your looking into this company please don’t use them. I’m sure they have the cheapest payment and that’s why companies use them in the first place, but you will be doing your employees a grave disservice by forcing them to venture into this absolute dumpster fire of a company. I would rate 0/5 if possible but 1 was the lowest I was allowed.
5 / 5
Their general liability insurance purchase process is simply the best online experience I've ever had in my life!
5 / 5
As long as they cover your line of business, you're literally covered! best rates, best coverage, best online experience, best professionals, can't be happier that I chose them!
Not all those who wander are lost.
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