Professional Liability Insurance for Psychologists

Why Do Psychologists Need Professional Liability Insurance?

When you went to school to become a licensed psychologist, you knew you wanted to help people. To do that you need to have very specialized skills and education. This leaves you open to lawsuits within your profession.

Professional Liability insurance, or Malpractice insurance, is a must for any psychologist. There is always a chance that you could make an incorrect diagnosis, get accused of practicing poorly or incorrectly, get accused of negligence, or even failure to provide treatment. Unfortunately, a more common accusation has come up in recent years of sexual misconduct, whether real or perceived. All of these things pose significant risks to your livelihood and psychology practice. Professional Liability insurance for psychologists is one part of risk management to protect you, your family, and your business.

What Does Psychologist Professional Liability Cover?

Each insurance company that offers Professional Liability insurance will have different coverage options. However, each policy will cover at least the following basics:

• Negligence: Anytime you are negligent within your profession, even if you are just perceived to be so, you are at risk for a claim.

• Sexual Misconduct: The smallest hint of anything of sexual nature, even if unintentional, can cause a client to become uncomfortable. If that happens, you will likely be sued, and not only will this cost you a ton of money if you don't have a Professional Liability insurance policy, but could ruin your reputation.

• Defense Costs: Hopefully, if a claim does arise, you will be found not guilty. Even so, you will still have to pay for court costs and attorney fees. The psychologist Professional Liability insurance policy will cover these fees.

• Prior Acts: Most of the time a Professional Liability insurance policy will have the option of covering any previous claims that may arise. On the flip side of that, if you stop your practice, you should purchase tail coverage, because claims can still pop up even years after you close shop.

• Personal Injury and Advertising Injury - This coverage is where you will find protection for things like libel, slander, false imprisonment, copyright issues, or even false advertisement.

How Much Does Psychologist Professional Liability Insurance Cost?

The average annual premium for a psychologist Professional Liability insurance policy with a standard limit of $1,000,000 per occurrence is $1,000. Of course, if you choose to have higher limits the cost will be higher. Some other factors that may affect the premium are the size of your practice and number of employees, annual revenues, where your practice is located, and if you choose to have a deductible on your policy.

The higher the deductible, the more significant the premium discount. Another way to save money on your premium is to let CoverWallet provide all of your insurance needs. Bundling your policies can help you have significant savings.