Types of Liability Insurance for Mental Health Counselors, Psychologists, or Behavioral Health Professionals
CM&F offers Mental Health malpractice insurance to individuals interested in protecting themselves with superior liability insurance. 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 provides protection against covered claims arising from real or alleged errors or omissions, including negligence, in the course of your professional duties. 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.
Some examples of malpractice claims include:
- Failure to diagnose an existing medical condition that a reasonably competent professional is capable of diagnosing
- Improper patient care or negligent medical treatment that negatively impacted a patient
- 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 resulting from claims of bodily injury or property damage which occurs in the place where the professional services were provided. 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 office and they slip on a wet tile causing injury
- A client suffers an injury while the provider is performing covered professional services
What is property damage coverage?
Property damage coverage offers coverage for the damage of the personal property of those in your care, custody or control while performing professional services. CM&F offers limited property damage coverage of up $1,000 as part of the event limits for damage to the personal property of others only, unless otherwise specified in your professional liability policy.
Some examples of property damage claims include:
- Home care provider accidentally breaks a lamp of client while in the home. Replacement cost is $500.
- Home care provider accidentally breaks a pair of eyeglasses of client while working in home. Replacement is $250.
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.
Some examples of a cyber liability claim include:
- Computer software is stolen that contains sensitive patient 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.
At CM&F, we believe in the importance of a lifelong relationship. We want to be a valuable provider from your first day as a psychology student until the day you retire. It is our hope to serve as a partner in your career, offering help and guidance along the way.
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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
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