Cost of Psychological Insurance
Liability claims are a risk to a psychologist where a client might feel the psychologist made a mistake or was negligent in the course of treatment. The average cost of general liability for a psychology business depends on the location, size, payroll, and experience.
Do psychologists need insurance?
Out of the thousands of psychologists in America, twenty percent are likely to find themselves with a complaint through the course of their career. Any business that provides a product or service in terms of advice is likely to find itself falling into the pitfall of a financial loss.
A single lawsuit has the capability of ending a career. Having psychology insurance gives you peace of mind to work without any stress of what can happen in the future.
What Insurance do I need as a Psychologist?
Professional Liability Insurance
The insurance protects you from claims in the course of your work. It covers claims of malpractice, negligence.
The policy covers the legal fees and court settlements awarded to the complainant. Psychology insurance covers against any sexual misconduct claims, personal injury, and loss caused by advice given by the psychologist.
Types of Professional Liability Insurance
The insurance policies fall into two categories, which are
Claims made- the policy only covers claims when the coverage is still active.
Occurrence- does not consider the status of the policy. For example, if a claim is made after the policy has lapsed, but it happened when the policy was active, the insurance will cover the claim made.