Physical therapy liability insurance is a must-have for physical therapists. It is also referred to as physical therapy malpractice insurance.
Obtaining the appropriate level of insurance coverage as a physical therapist is a requirement in a number of states. and even for the ones who don’t, having it is essential in safeguarding the practice.
Here, we will discuss everything that consists of physical therapy liability insurance, its types, requirements, and various policies.
Physical Therapy Liability Insurance
Why Do Physical Therapists Need Liability Insurance?
Physical therapy malpractice insurance is important to every therapist. it protects you from financial loss in case a patient/legal representative files a lawsuit or makes a claim on you for any alleged wrongdoing.
In the perfect scenario, If a patient’s condition worsens because of something that a therapist did or suggested, the patient can sue them, and the usual severity of the situation necessitates the insurance policy.
For instance, in Pennsylvania, licensed physical therapists must maintain professional liability insurance with a minimum coverage of $1 million per occurrence
Liability Insurance Types
- Occurrence-Based Insurance: This kind of insurance encompasses events that happen during the period of the policy with no regards to when the claim is raised.
- Claims-Made Insurance: This type of coverage is, however, only offered when the claim is signed at the specific period it is selected regardless of the time the event occurred.
- Tail Insurance: Also called extended reporting period (ERP), it covers events and claims filed after the policy has expired for a defined number of years.
Tail insurance is especially significant for physiotherapists since it guarantees them coverage even after they cease to practice. For instance, in Ontario, There is a compulsory requirement for physiotherapists to acquire tail insurance for a period of not less than 10 years
Malpractice Insurance for Physical Therapists
Risks Covered by Malpractice Insurance
Physical therapy malpractice insurance encompasses a variety of risks that come with the practice of physical therapy. These include:
- Negligence: Claims in which the therapist is alleged to have shown carelessness by either failing to give proper attention or making errors during application of therapeutic procedures.
- Misrepresentation: Allegations against a therapist who has supposedly given incorrect recommendations or counsel to a patient.
- Inaccurate Advice: Failure of a therapist to assist a patient and worse, causing him an injury through his recommendations.
- Data Protection: Responsibility associated with a breach wherein patient information databases and other assets are said to have been improperly exposed or unsecured.
Benefits of Malpractice Insurance
Key benefits associated with malpractice insurance are as follows:
- Defense Costs: Legal expenditures incurred in a malpractice-related litigation are reimbursed.
- Settlements and Judgements: Settlement and judgments resulting from claims of malpractice are also compensated.
- Piece of Mind: Acts as a security blanket and lowers stress levels of a worried person with chances of being sued.
Physical Therapy Professional Liability Insurance
Requirements for Professional Liability Insurance
Here too there are jurisdictional rules which define the type of professional liability insurance requirements needed. For instance:
- Pennsylvania: Has a minimum requirement of 1 million for every single occurrence or claims made.
- Ontario: Sets a minimum limit of $5 million per incident with no deductible and tail insurance for 10 years.
Importance of Compliance
Disciplinary measures, including suspension or revocation of the license, can be imposed due to not obtaining compliance insurance.
According to the law of the Commonwealth of Pennsylvania, any individual failing to maintain compliance insurance is liable for punishment under the Section 7 of the Physical Therapy Practice Act.
Physiotherapist Insurance and Physiotherapy Insurance
Overview
A bundle of policies referred to as physiotherapist insurance or physiotherapy insurance is used mainly as a cover for physical therapy liability exposed to negligence and errors.
These policies are crucial in mitigating the risks faced by physiotherapists for example where a therapist aggravates an injury or misdiagnoses an ailment.
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Key Coverages
- Professional Liability: This coverage provides protection against claims of negligence or misconduct made against the insured.
- Business Insurance: It provides some extra coverage for business interruption or other areas including property damage.
PT Liability Insurance and Physical Therapy Business Insurance
PT Liability Insurance
As the name implies, PT liability insurance is professional liability insurance issued exclusive to physical therapists. The basic feature it has in most cases is exclusion of all claims related to patient care and treatment during and after the therapy session.
Physical Therapy Business Insurance
Insurance for a physical therapy business includes such coverages as:
- Professional Liability: As discussed, this covers malpractice claims.
- General Liability: Protection against slip and fall claims or non professional negligence.
- Property Insurance: Coverage for damages related to business premises.
Importance of Comprehensive Coverage
Having comprehensive insurance coverage is crucial for physical therapy professionals and practices.
It safeguards against professional exposures and it also guarantees that the practice would be in a position to function even in the presence of risks that are not familiar.
Help others make better decisions
Comparison of Liability Insurance Requirements
This table shows any disparity in the requirements for liability insurance between Pennsylvania and Ontario and why it is necessary to be familiar with local requirements.
| Jurisdiction | Minimum Coverage Requirement | Tail Insurance Requirement |
| Pennsylvania | $1 million per occurrence | Not specified |
| Ontario | $5 million per incident | 10 years |
Conclusion
Any physical therapy practice should have physical therapy liability insurance. Whether you are a physical therapist in the US or a physiotherapist in Canada, it is essential to learn and follow the regulations concerning liability insurance .
For further details on liability insurance options and requirements, visit our website or contact us today. We are here to help.
