Liability insurance is one of the most important aspects of protecting your private practice. Liability coverage will help to shield you from legal actions and complaints that could run your practice underwater.
What is liability insurance?
Liability insurance protects YOU as the clinician. If legal action is brought forth by a current or former client, their spouse, or a legal guardian, professional liability insurance will help to cover your legal defense and state licensing board defense. Many liability insurance carriers also offer optional general liability coverages for “slip and fall” incidents and business personal property damage or loss.
Why do I need liability insurance?
Whether you operate a private practice or are employed as part of a group practice, liability insurance protects you personally from a myriad of potentially negative situations. Unfortunately, even a therapist with the best intentions could face litigation for just about any reason, with or without cause. A few examples of situations where a clinician can face legal ramifications are:
- Failing to report indications of emotional, physical, or sexual abuse to a child
- Neglecting the duty to warn
- Failing to protect a client from themselves, such as when they express a credible threat of suicidality or homicidality
While these situations rarely occur with malicious intent it is important to have liability insurance for such events.
What protection comes with liability insurance?
Each policy’s coverage is different. Great Lakes Psychology Group, as well as most commercial health insurance payors with whom you may contract, require liability insurance limits to be at least $1,000,000 per occurrence and $3,000,000 aggregate. In general, this protection will provide:
- Legal support
- Payment to help with the cost of lawsuits
What is the cost of liability insurance?
The cost of liability insurance varies depending on a multitude of factors. These factors may include:
- Coverage limits
- Years of experience as a clinician
- Previous licensing board complaints
- Practicing state
According to the Counselor Liability Claim Report by HPSO, the average cost of a lawsuit is $113,642 while the premium cost of liability insurance ranges from $100-$400 each year depending on the state, coverage, and setting.
Where can I find liability insurance?
There are a variety of sources that provide liability insurance to private practice clinicians. At Great Lakes Psychology Group, the two insurance providers we see most often used by our network of clinicians are CPH & Associates and HPSO.
There are many factors involved in setting up your private practice including finding the right liability insurance for your practice. Beyond liability insurance, clinicians interested in starting their private practice should consider the costs of billing, office space, marketing, education, credentialing, and risk management. Great Lakes Psychology Group makes private practice simple. Our clinicians have the autonomy to set their schedules and focus on their clients while our teams take care of the billing, marketing, and credentialing. If you are wondering if private practice is right for you, you can schedule a call with us directly at grow@glpg.net.
