Do Psychotherapists need Malpractice insurance?

One of the most precious commodities a psychotherapist and their client’s business exchange is trust. It is an essential part of their relationship and will help a patient achieve their goals of healing while allowing a psychotherapist to carry out the treatment they feel is in the best interest of their client. In many ways, a psychotherapist is there to help their patient get themselves get back on track when they have been derailed by everything life has had to throw at them.

But what about you as a psychotherapist? What forms your support network?

In terms of running a psychotherapist business, you can always rely on the safety net of business insurance, and a key component of that is malpractice insurance.

What is malpractice insurance?

Malpractice insurance is essentially designed to protect you and your professional reputation.

While the vast majority of your clients will be grateful for the treatment they receive and may even recommend you to family and friends, there is always the chance that someone can be unhappy with how they have been treated. They may claim that your treatment of their condition has actually made them worse – and this is where malpractice insurance comes into play.

Malpractice insurance will help contest any such claims which are brought against you by helping with legal costs and paying out any compensation which is awarded to the claimant.

Do I need it if I already have public liability insurance?

Yes. Public liability insurance is a broader type of cover and doesn’t normally cover treatments. It is designed more for incidents which take place on your business premises or as a result of your business practices. Public liability claims can be made by clients or members of the public if they feel they have suffered injury, illness or damage to their property. Malpractice claims can only be made by your own patients and must relate to the treatment they have received from you.

Malpractice insurance claims can run into tens of thousands of pounds, which can cripple any psychotherapist practice, and there is also the potential damage to your reputation to take into account. That’s why malpractice insurance is an essential requirement for many psychotherapists.

Dean Laming

Dean Laming is a Chartered Insurance Broker with more than 25 years insurance experience. Through various underwriting, operational and management roles, Dean has built up extensive insurance knowledge together with expertise on running a business. Dean is Managing Director of Salon Gold, part of the wider Henry Seymour Group.

All articles by Dean Laming