Any professional providing therapy services online or in-person should protect themselves with a professional liability insurance policy.

Each therapy practice is unique, and insurance requirements may vary; a comprehensive policy package for therapists will typically include the following coverages:

• Professional Liability Insurance, also known as Malpractice Insurance, offers coverage for actual or alleged negligence, errors, omissions, or failure to deliver a service as promised. In some cases, the result may be a bodily injury. As a therapist, a client can sue you for any professional decision that causes harm, alleged or otherwise. The types of clients you treat heavily influence your risk of facing a malpractice lawsuit. For example, if you treat people with a history of violence or self-harm, your work may be more closely linked to your patient’s safety than if you provide couple counselling.

Claims and lawsuits covered by Professional Liability Insurance for therapists may include:

• • Inappropriate relationships with a client;
  • Failing to report abuse;
  • Neglecting the duty to warn; and,
  • Failing to protect a client from themselves.

• Cyber Liability Insurance is critical for therapists who treat patients virtually. Approximately one in five Canadian small businesses has been affected by a cyber attack in the last two years. With recovery fees averaging $100,000, most business owners can’t afford the risk. In the event of a cybercrime, Cyber Liability Insurance may provide financial coverage for repair to computer and data infrastructure systems and notification costs, legal fees, credit monitoring, and crisis management.

• Commercial General Liability protects against common risks you may encounter while running your practice, including actual or alleged third-party bodily injury or property damage. If you operate a physical location in addition to providing virtual services, you need CGL to cover medical fees and legal expenses, regardless of the lawsuit’s outcome. For example, a client slips on a patch of ice outside your practice, resulting in a mild concussion. Your CGL insurance could cover both the medical fees and legal expenses.

• Commercial Property Insurance: is critical for therapists leasing or renting a space as it protects your property (i.e., studio, equipment, inventory) from an insured peril, such as fire, theft, or vandalism. Commercial Property Insurance policies will often include business interruption (a.k.a. business income) coverage, which provides reimbursement for net income lost following an insured event.
  • Please note, that business interruption coverage will not cover income lost due to a pandemic, infectious disease, or government-mandated closure.