About Mental Health Malpractice Insurance for Marriage & Family Therapists
Malpractice Insurance, also known as Professional Liability Insurance or Errors & Omissions Insurance, shields you from lawsuits over your services and the financial losses or physical harm that you may have caused.
Take, for example, the malpractice suit an Illinois man filed against his former marriage counselor who seduced his former wife. The man alleged that the therapist encouraged him to confide about his marital woes, only to use the information to connect with the man's wife during sessions with her. The plaintiff settled out of court, collecting a cool $200,000 in damages.
Other malpractice claims could arise from you failing to coordinate treatment with other professionals, such as psychiatrists and social workers. You could also be sued for not reporting child abuse, which most states require therapists and other professionals to do.
When you have Malpractice Insurance, you'll be covered for…
- Professional negligence.
- Failure to complete contractually obligated work.
- Provision of faulty or shoddy services that jeopardize the client's health.
- Misrepresentation of services, such as not having a license to practice (which is required by all states).
Malpractice Insurance is claims-made coverage , which means your policy must be in force both when the alleged incident occurs and when the lawsuit is filed. If you meet both conditions, your policy can cover attorney's fees, settlements, and other costs related to the initial charge (up to your limits).