Psychologist Insurance

Psychologist Liability Insurance

Professional liability insurance for psychologists protects you from potential risks resulting in lawsuits against your practice.

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Trusted by over 300,000 Canadian small business owners!
Save up to 35% on your insurance
Instant price and coverage in just a few clicks!
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Psychologist

Liability insurance for psychologists

Your patients depend on your expertise, detailed advice, and communication that ensures their health concerns are appropriately treated. With that being said, there are plenty of things that could go wrong, even with the most diligent care and attention. You can run into errors in your treatment decisions and face accusations of negligence.

Anyone working as a psychologist in Canada should protect themselves with a Professional Liability Insurance policy. It will give you better peace of mind, and, more importantly, it may provide significant financial protection if there is a lawsuit filed against your practice.

Psychologist insurance, also known as Professional Liability Insurance, protects psychologists with financial coverage against legal allegations of wrongdoing, negligence or errors and omissions. This policy can cover legal claims, defence fees with extended coverage options for general risks, such as third-party property damage and bodily injury claims.

As a psychologist, consider the following insurance coverages as part of your risk management strategy:

  • Professional Liability Insurance: Also known as Errors and Omissions Insurance (E&O), this coverage protects psychologists against claims from clients alleging negligence, errors or misconduct in their professional duties. Suppose you asked your receptionist to organize a patient’s confidential dossier, including session recordings and personal health files. When booking their next appointment, the client notices your receptionist looking through their files and gets very upset with the unwarranted access to their information. Your patient could sue you for misconduct for breaching their privacy. In this case, Professional Liability Insurance may cover the legal fees and damages, including monetary judgments.
  • Commercial General Liability Insurance (CGL): Commercial General Liability Insurance can protect many businesses, including psychology clinic owners, against common claims or lawsuits alleging third-party bodily injury or third-party property damage. Say you accidentally spill a hot drink over a patient during a discovery session; your client could sue you should they be injured. In this case, your CGL insurance may cover legal defence costs and medical costs.
  • Commercial Property Insurance: This coverage protects your practice and the equipment you use to conduct your business should it be damaged or stolen. Examples of insured events are fire, theft or vandalism – your broker can take you through more of the events that this coverage would insure. Commercial Property Insurance could provide coverage if your practice was broken into and vandalized, for example. In this case, you could be covered for the cost to refurbish or repair the damaged equipment and the cost of securing your property.
  • Cyber Insurance: Cyber Insurance provides financial coverage against cybercrime involving your technology systems and customer data, such as incident response and breach management fees. For example, a hacker successfully obtains sensitive patient information from your computer system. As a result, several patients sue for losing access to their private information. Cyber Insurance could cover the cost of damages and defence costs for the lawsuits against your practice.

Insurance premiums can vary by the size of your practice and the specific services offered. For an independent psychologist, Profesional Liability Insurance coverage starts at around $300 annually, with a $1M limit.

To understand what coverage you need for your psychology practice, you’ll be asked a few simple questions about your business during the quoting process. This will help us provide you with a quote that’s right for you.

Here are some of the factors that are taken into consideration during your quote:

  • Annual and Projected Gross Revenue
  • Years of Experience
  • Number of Employees
  • Designations/Certifications Held
  • Claims History

Any professional who is an independent psychologist or a psychologist that runs a physical clinic location can benefit from a psychologist insurance package. At the very minimum, psychologists should have Professional Liability Insurance to protect them from serious lawsuits that stem from their professional services. However, other coverages are also important to ensure your business is fully covered.

Getting insured is quick and easy!

Complete our 5-minute online application for a free psychologist professional liability insurance quote.

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Common claims scenarios

Professional psychologist conducting a

Problem: A long-term client claims they’re going through a middle-life crisis and expects you to change their treatment. You decide consistency is more important in their recovery plan and choose not to change the way you handle their situation. The client inevitably alleges your actions made their condition worse.

Outcome: The client sues you for malpractice. Your Professional Liability Insurance policy could cover the legal fees and other related expenses, totalling $100,000.

Patient looking at psychologist

Problem: A patient confesses to having constant thoughts about harming a person they know. While you’re aware of your duty to warn the third party of events like this, you decide that it seems highly unlikely due to the clients’ progress over the past year. Your client commits a violent attack a few weeks later, you’re sued by the victim for failing to warn them.

Outcome: Your Psychologist Malpractice Insurance could cover the legal fees, medical expenses and other related costs, totalling $200,000.

patient counselling

Problem: You’re treating a client while they lay on a chaise longue with an adjustable backrest in your treatment room. The backrest on the chaise lounge slips and falls straight back, severely injuring the client’s neck and head.

Outcome: The client files a lawsuit against you for bodily injury. In this case, your Commercial General Liability policy could cover the client’s medical expenses and lawsuit-related costs, totalling $15,000.

Frequently asked questions

Do Psychology Intern/Students need to carry insurance?

Yes, it’s strongly advised that students and intern psychologists carry Professional Liability Insurance. Interns are still learning, and it’s more likely to make mistakes during those developmental years. Having insurance will protect against alleged negligence and professional errors, similar to licensed psychologists.

Do I have to get insurance from a psychology association?

No, though some associations (e.g. CPA) may offer insurance policies as part of a benefit of their membership. It is advised to do your research and speak to an expert insurance broker to ensure that your specific business needs are met.

What is the minimum amount of professional liability insurance coverage psychologists need to have?

There isn’t a minimum requirement; however, it is recommended to carry at least $1 million in Professional Liability coverage. What’s important is that you’re covered for the risks that you couldn’t afford to pay out of pocket, should a lawsuit be brought against your practice.

Other health and wellness professions we insure:

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As a psychologist, you’ve dedicated your career to helping the wellbeing of others; you deserve a broker dedicated to helping the wellbeing of your business.

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