Liability Insurance Terms to Know for Mental Health Professionals
Professional liability insurance policies for psychologists or mental health professionals can be confusing, overwhelming, or may even seem unnecessary.
Below is a list of liability insurance coverage terms that you should familiarize yourself with as you research mental health professional insurance options.
Glossary of Common Terms You’ll Find in Mental Health Professional Liability Insurance Policies
Assault Upon You – covers expenses which mental health profesionals can incur from a bodily injury or damage to their personal property resulting from an assault while traveling to and from their place of employment
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Assets – a resource with economic value, whether that be completely monetary, or a material resource
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Biomedical Defense – coverage that protects against claims alleging bodily injury or damage arising from biomedical waste
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Counselor or Psychologist Malpractice Insurance – used interchangeably with counselor or psychologist liability insurance, malpractice insurance is designed to protect mental health professionals from claims of negligence or improper treatment
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Counselor or Psychologist Professional Liability Insurance – also known as malpractice insurance, provides financial and legal protection from injuries and damages to patients and or property
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Damages Incurred – charges or punishment that a mental health professional is obligated to pay as a result of a malpractice dispute before professional insurance benefits are paid out
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Deductibles – the amount of money a mental health professional must pay before the insurance company will finance a claim
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Deposition Fee Coverage – financial assistance for fees that result from a deposition that the insured mental health professional is required to attend
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Employment Practices Liability – a type of liability insurance that covers wrongful acts arising from the employment process, including wrongful termination, discrimination, sexual harassment, and retaliation
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Extended Reporting Period – also known as tail coverage, extends coverage for incidents that happened during the time you had your policy, but a claim was not filed until after the policy was expired or cancelled
A – E
F – M
First Aid Coverage – financial help to insured mental health professionals in the event of an emergency that requires immediate attention. Expenses can cover things such as the cost of an ambulance or emergency medical procedures
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Good Samaritan Coverage – protects an insured off-duty mental health provider against liability claims who offers help in an emergency situation should an injury or accident occurs.
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HIPAA Defense – covers expenses that result from HIPAA infractions
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Incident – an event or occurrence that spurred a liability or medical malpractice claim
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Insurance Claim – a request for benefit compensation as a result of a covered incident
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Liable – legal responsibility for an action
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License Defense Coverage – assists insured mental health professionals with expenses incurred from protecting their professional license due to an investigation or proceeding originating from a malpractice claim
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Loss of Earnings Coverage – provides assistance for lost wages, costs, and expenses due to an insured mental health professional’s required attendance at a trial, hearing, or arbitration proceeding as a defendant
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Medical Payment Coverage – reimburses third parties for medical expenses incurred to treat injuries sustained arising from business activities
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Mental Health Professional Insurance Policy – a contract between an insurer and a mental health provider who purchased insurance that details what the insurer is legally obligated to pay if an incident were to arise.
Negligence – the failure to exercise care that is reasonably expected of a mental health professional
Premium – monthly or annual payment amount mental health professionals pay for malpractice insurance
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Risk Management – the process of mitigating the chances of something going wrong
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Sexual Misconduct Coverage – provides indemnity to insured mental health providers for improper sexual misconduct claims including assault, harassment, defamation, or improper handling of misconduct allegations
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Workplace/Premises Liability – protects landowners and tenants when someone gets hurt on their property due to dangerous conditions
N – Z
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