Professional Liability Insurance for Psychologists

It's easy to find the right coverage for yourself and your business. Start your application and get a quote in minutes.

Prefer to speak with a CoverWallet consultant? Call (646) 844-9933 anytime

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.

Are you ready to get down to business?

Great, just click get a quote and you’re off.

Frequently Asked Questions About Psychologist Professional Liability

  1. What is the difference between Malpractice and Professional Liability? Malpractice and Professional Liability are the same when it comes to psychologists. You will hear the words used interchangeably.
  2. Does CoverWallet offer coverage for group practices? Yes, be sure to discuss your business practice with your advisor so we can put together the best package for your unique needs.
  3. Does CoverWallet provide coverage for Psychology students? Yes, the Professional Liability insurance policy includes coverage for students. As a student, you will still have to provide care for clients and are at risk for the same types of claims. Even if the psychologist you are working, or interning, for covers you on their policy, it is a great idea to have your own policy as well.
  4. Do I have to have any license or certificate for getting Professional Liability? No, as long as you are receiving education and working towards your licensure, we can provide a Professional Liability insurance policy for you.
  5. What is the difference between a claims-made coverage vs. occurrence coverage? Most Professional Liability insurance policies are claims-made. This means that the policy must be in effect at the time of a claim. For example, if you have a policy in force for three years and then let it cancel and a claim arises from one year ago, there will be no coverage since the policy is no longer active. Occurrence will provide coverage for a claim as long as it was active during the time the claim happened. In the example above it would be covered by the occurrence type of policy.

CoverWallet has a professional team of advisors that are highly skilled in Professional Liability insurance policies. We can also help you with all of your other business insurance needs. Contact us today for a free no-obligation quote, or apply online. Peace of mind, at your fingertips!

Business Insurance

Running a business is challenging enough without having to worry about lawsuits, employee injuries or property damage. Having the right insurance gives you the peace of mind to focus on what matters - running your business.

The coverage you need depends on the type of business you run. A restaurant owner needs to be covered against customers possibly getting food poisoning while an accountant needs to be covered against calculation errors. CoverWallet's intelligent assessment system will identify the insurance you need based on your specific business, get you a policy that fits your budget, and do it all in less time than you think.

Get free quotes »