Setting up work as a practising therapist is both exciting and daunting. In order to ensure you can provide professional care to the highest standard, you will need to take out specific therapist’s or counsellor’s insurance, but what does this entail and why do you need it?

WHY DO YOU NEED THERAPIST’S INSURANCE?

Practising as a therapist or counsellor is often the culmination of extensive training, undertaken over several years. It provides a rewarding opportunity to really help the clients you see.

Unfortunately, psychotherapy does carry some potential risks. People can initially feel worse as they open up and think about their thoughts and feelings, and in rare cases, it may even trigger negative thoughts about wanting to hurt themselves.

In the event that a client is dissatisfied with the service you provide, or if they feel that it has damaged them in some way, it could be that you face allegations of malpractice or providing harmful advice.

To protect against lawsuits relating to malpractice, negligence, or even breach of confidentiality, therapists need to take out appropriate insurance. This will cover legal fees, settlements, and damages in the event a client sues you.

In this way, insurance safeguards your reputation from spurious allegations, protects your practice from unexpected financial burdens, and ensures you can continue providing care for your other clients without disruption.

WHAT KIND OF INSURANCE DO THERAPISTS NEED?

Whether you are working as therapist, a counsellor, a psychiatrist, or even a life coach, it’s important to take out insurance that will protect you in the event of a claim. To do this, you should speak to a specialist insurer to discuss your needs and arrange professional therapist’s or counsellor’s insurance.

In order to protect you against all potential outcomes, your policy could include several elements including:

1. Professional Indemnity Insurance
2. Public Liability Insurance
3. Cyber Insurance

Let’s take a look at the various types of insurance a professional therapist will require.

INDEMNITY INSURANCE FOR THERAPISTS

Professional indemnity insurance for therapists protects against claims of negligence, malpractice, or errors in professional services. It covers legal fees, compensation costs, and settlements if a client claims harm due to therapy treatment.

Generally, the policy will include “claims-made” coverage, which means it protects against claims filed during the policy period. That means even if the incident occurred in the past, so long as the policy was active at the time of the incident, you will be covered.

Additionally, therapists can purchase “run-off” coverage, which extends protection for future claims that arise after they have stopped practising, ensuring long-term security against potential liabilities.

PUBLIC LIABILITY INSURANCE

Public liability insurance protects therapists and counsellors against claims of injury or property damage while on their premises.

If a client slips on the stairs to your office, for example, public liability insurance covers legal fees, medical expenses, and potential compensation. Or perhaps your client damages their clothing during art therapy, you may need public liability insurance to help you cover any compensation claims.

It’s important to take out this kind of cover because accidents can happen unexpectedly, even in safe environments, and such incidents may lead to costly lawsuits. This coverage helps protect your business from any such financial burdens, ensuring you can continue to practise without significant disruption.

CYBER INSURANCE

Cyber insurance protects you against losses from cyber-attacks, data breaches, and other technology related leaks. It covers costs related to data recovery, legal fees, notification expenses, regulatory fines, and potential lawsuits if sensitive client information is compromised.

Due to the open and frank relationship clients develop with a therapist, you may find yourself holding sensitive information on file including personal and mental health records. A cyber-attack could therefore jeopardise the trust that clients place in you.

Cyber insurance helps manage any risks associated with a cyber-attack or data breach, providing financial and legal support to recover, and ensuring compliance with privacy laws and regulations.

NEED TIME TO TALK IT THROUGH?

Just like you, we’re experts at what we do. If you need time to talk through the insurance options available, the team at OBF are on hand to help.

Like many therapists, you might assume you are covered under your employer’s insurance, but if you are working in a private practice, or you’re self-employed, this won’t be the case. It’s your responsibility to ensure your cover is sufficient, so it’s a good idea to check exactly what’s included in your policy.

As Ireland’s longest-established provider of insurance for counsellors and therapists, OBF are able to assess your individual insurance needs and tailor appropriate cover for your work.

For more information on how our counsellor’s and therapist’s insurance policies can protect your career and provide cover for the risks you face, contact the OBF team today.