Insurance for Psychologists

Professional liability insurance for psychologists is reasonably priced as psychology is considered to be a low risk category, with just 2% of psychologists are ever sued for malpractice (according to the American Psychological Association (APA). This compares with an average of 7% for all medical professionals.

The impact of a malpractice lawsuit however, can be just as devastating for psychologists as it can for any medical professional, especially a sole practitioner – Even unsuccessful lawsuits consume valuable time, energy, and they can be incredibly stressful.

Without insurance coverage, you have the added worry of the possibility of financial devastation.

Psychologists Professional Liability Insurance can include:

Option to include general liability insurance
Coverage limits of up to $2 million per individual claim
Complete authority to approve settlement decisions
Protection for telemedicine and telehealth services
Legal defense coverage for professional license issues
Legal defense expenses covered in addition to liability limits
Defense coverage for allegations of sexual misconduct
Protection for HIPAA-related privacy violation claims
Portable coverage available 24/7, applicable in volunteer work, telehealth roles, per diem, or moonlighting assignments

Why do Psychologists need Insurance?

The US is becoming an increasingly litigious society and both the number of claims and the awards to plaintiffs are increasing across the board.

A recent report by CNA found:

The cost of counselor malpractice claims has almost doubled in recent years: $7.8 million was paid over the 5-year study period, compared with $8 million paid during the previous 10 years.
The average total cost of a malpractice claim is $113,642.
43.9% of malpractice claims involved allegations of sexual/romantic relationships.
The average cost of defending a license was $5,454 a 46.3% increase from 2014.
There was a staggering increase of 456% in deposition assistance and record request matters since 2014.