Mental Health Counseling Insurance

As a mental health counselor, you believe that people grow and change throughout their lives, and with professional guidance, they can understand the underlying behaviors, impulses, and beliefs that actively shape their experiences. And because understanding is the first step to change, most of you work takes place in this revelatory area.

Using your assessment skills, you guide your clients through the challenges they face and help them apply the cognitive, affective, behavioral, and systemic strategies to facilitate change. In turn, your clients see your private mental health counseling practice as a safe place where they can discuss their problems without fear of judgment or rejection.

However, when dealing with clients who suffer from depression, anxiety, stress, grief, or suicidal tendencies, the stakes are high, and every piece of advice you offer could affect their overall progress. Because your services are advice-based, what you say — or fail to say — could lead to a medical malpractice suit, especially if you fail to coordinate treatment with other professionals, such as psychiatrists.

So whether you run your own counseling practice or work on a contract basis at group homes, clinics, social services agencies, corrections facilities, or schools, you need a plan of action in case the worst-case scenario jeopardizes your mental health counseling practice. With adequate business insurance, you'll have peace of mind that you won't have to go into debt over a court battle.

Based on your industry and your common risk exposures, our licensed insurance agents recommend carrying…

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About Malpractice Insurance / Professional Liability Insurance for Counselors

Malpractice Insurance (aka Professional Liability Insurance or Errors & Omissions Insurance) covers liability suits against your practice that allege your services caused harm or financial loss.

For example, say a mental health counselor began an inappropriate relationship with a client. He began revealing personal information about himself to the client that had no therapeutic value and encouraged the client to meet him for a social engagement outside the office. A sexual relationship emerged while he was still offering the client counseling sessions. When the client discontinued the counseling sessions, the counselor failed to assist her in obtaining another counselor. Because the counselor breached clinical, ethical, and legal standards of care, the plaintiff's attorney initially sought $500,000. However, the case was settled out of court for $150,000 (plus an additional $11,780 paid in legal costs).

Unfortunately, cases like this are not anomalies. As more people gain access to the therapeutic help they need in order to live healthy lives, malpractice suits are becoming more common. When you have Malpractice Insurance, it covers lawsuits over…

  • Professional negligence.
  • Breaches in standard of care.
  • Provision of shoddy services that jeopardize a client's health.
  • Failure to treat or protect clients appropriately.
  • Misrepresentation of services to entice a prospective patient to agree to a contract.

Malpractice Insurance is claims-made coverage New browser window icon., which is based on two conditions. Your policy must be active when an alleged incident occurs and when the lawsuit is filed against your practice. If these conditions are both met, your policy can cover your attorney's fees, settlements, and other costs related to the initial charge (depending on your limits).

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As a mental health counselor, your patients are your priority. And with a solid risk management plan in place, you can ensure your practice will be even when the situation seems bleak.

Start building your business insurance plan and review competitive quotes when you complete our all-online insurance application today!

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