Holistic and complementary therapy has been growing in popularity in the UK in recent years. People are starting to realise that alternative therapies are just as valid as more conventional therapies, and in many cases, they can deliver superior outcomes.
As a result, the insurance industry has created an holistic insurance package that caters to the specific needs of holistic and complementary therapists so that they can protect their businesses from the risks that they face. This insurance package covers:
- Liability insurance
- Property insurance
- Personal accident and sickness insurance
- Legal expenses insurance
Liability insurance is the most important type of insurance for holistic and complementary therapists. It protects you against compensation claims that are made against you. Compensation awards can cost in excess of £250,000 to settle so without this insurance, most therapists would struggle in the event of a claim.
As well as covering the compensation award, any associated costs and expenses are also covered, including the legal fees incurred in handling the claim. Your liability insurer will defend the claim on your behalf and deal with any legal issues.
Employer’s liability insurance covers compensation claims made against you by your employees. This type of insurance is a legal requirement if you employ anyone.
Public liability insurance covers compensation claims made against you by third parties such as your clients. This type of insurance isn’t a legal requirement, although you may be required to have it as a condition of your membership of a professional body.
Standard public liability insurance does not cover claims arising as a result of professional activities so if a holistic or complementary therapist relied on a standard policy, they could be uninsured in certain circumstances. Insurance for holistic and complementary therapists should include a medical malpractice cover extension to address this issue.
A standard public liability policy will also only cover compensation claims involving injuries or property damage, which is a problem because many of the claims made against a holistic or complementary therapist will be for purely economic losses. Insurance for holistic and complementary therapists should include a financial loss cover extension to ensure that the policyholder is fully covered.
This type of insurance covers your business premises and other business property against losses due to accidental damage or theft.
Even if you don’t operate from business premises and provide therapy at your client’s premises, you should still consider property insurance because it can be surprising just how quickly the value of your business property adds up, particularly when you include the computer equipment that you use to manage your business.
If you’re working away you should make sure that your business property is covered when it is taken with you. You should also make sure that you insure for the full value of your business property or you could be penalised in the event of a claim.
Personal accident & sickness insurance
Personal accident and sickness insurance protects your income if you are unable to work because you have been injured or you are ill. It pays a weekly benefit if you are unable to work on a temporary basis. A lump sum is payable if you will be permanently unable to work, or if you die or suffer certain specific injuries, such as the loss of a limb or an eye.
Legal expenses insurance
Finding yourself involved in legal action can be expensive because the legal fees can become costly. Legal expenses insurance protects you by covering these legal fees. Your legal expenses insurer will also help you deal with any legal action.
This type of insurance covers a number of different types of legal action, including:
- Criminal charges brought against you
- Tax/VAT inspections
- Disputes with neighbours or clients
- Employment tribunals
- Contractual disputes