Types of Liability Insurance for Mental Health Counselors, Psychologists, or Behavioral Health Professionals

As a mental health professional, whether it be a counselor, psychologist, or behavioral health professional, you can be held personally responsible for a variety of work-related claims. Whether it’s for medical negligence or a cyber data breach, you can be held liable even if you are not at fault. For that reason, it is important to understand all of the liability insurance coverage options for mental health professionals. Professional liability insurance for counselors or psychologists is a basic necessity for all active mental health professionals, and adding on a few coverage options below can ensure your career, assets, and future are fully protected.

What is mental health professional liability insurance?

Professional liability insurance for mental health professionals, also known as mental health malpractice insurance, protects analysts, therapists, counselors or psychologists from claims associated with wrongful practice resulting in medical expenses, bodily injury, and/or property damage, as well as the cost of defending negligence lawsuits related to such claims. There are two types of malpractice insurance for mental health providers: claims-made policies and occurrence policies. A claims-made policy offers coverage only when a claim is filed during a policy period. Occurrence policies accommodate long-tail situations, or events, that do not produce lawsuits or claims right away. While a claims-made policy may have a lower premium than occurrence, a claims-made policy owner may need tail coverage to protect themselves from negligence claims made after the policy expires.

Get A Quote

Some examples of malpractice claims include:

  • Improper patient counseling or negligent medical treatment that negatively impacted a patient​
  • Failure to diagnose an existing mental health condition that a reasonably competent professional is capable of diagnosing
  • Failure to warn a patient of all the possible risks involved with a procedure or treatment method

What is workplace liability insurance?

Workplace liability insurance protects mental health or psychology business owners from financial losses should an employee or patient be injured in the workplace. The injury can be both work-related, or simply just an unfortunate accident. All of CM&F’s mental health group professional liability insurance policies include workplace liability coverage.

Some examples of workplace liability claims include:

  • A patient comes to your psychology clinic and they slip on a wet tile causing injury
  • An employee suffers an injury while performing their job on-site

What is general liability insurance for mental health professionals?

General liability insurance for mental health professionals cover physical risks, such as bodily injury or property damage. It differs from professional liability insurance, which is coverage for errors and omissions in provider services. General liability is available as an add-on available to self-employed mental health professionals, as well as mental health group liability insurance holders with CM&F.

Some examples of general liability claims include:

  • A patient that suffers a slip and fall incident at a workplace
  • Property damage that you or an employee is responsible for causing

What is cyber liability insurance?

Cyber liability insurance for healthcare businesses covers the cost to recover from a data breach, virus, or other cyber attacks where patient PII/PHI is compromised. It also covers the legal claims that result from a patient data breach. Mental health group/clinic owners should invest in a cyber liability insurance policy to protect the future of their business.

healthcare provider charting notes on computer

Some examples of a cyber liability claim include:

  • Computer software is stolen that contains sensitive protected health information. The cost to rectify the situation is covered by cyber liability insurance.
  • A spyware virus compromises patient information. In turn, patients with information compromised by the virus file a lawsuit. The cost of legal fees will be covered with cyber liability insurance.

CM&F has made it their goal to protect all counselors, psychologists, or behavioral health professionals by offering a full-suite of affordable liability insurance options for mental health professionals that are designed to bring you peace of mind as you grow your career.

The CM&F Advantage

The Most Comprehensive and Reliable
Malpractice Insurance
on the Market

CM&F was founded over a century ago. Through up and down markets, CM&F’s dedication to mental health industry professionals has never wavered. CM&F remains committed to making it easy and cost-effective to secure vital professional insurance coverage with:
  • A++ Rated Insurance & Lowest Priced Mental Health Professional Liability Insurance Products
  • Outstanding Customer Service with a Direct Contact Line
  • Superior Claims Management
  • Fast Automated Application Process
  • 24/7 Access to Your Personal Online Document Archive

Resources for Mental Health Professionals

At CM&F, we are dedicated to being an educational resource for counselors, psychologists, and behavioral health professionals. To accomplish this we have compiled a vast amount of information from salary figures, to terms to know in a malpractice policy, and even blog posts written by fellow healthcare professionals.

CM&F Group