Liability insurance for psychologists
As the focus on mental health continues to grow, the demand for psychologists in Canada has become much greater over the last few years. As a psychologist, you help patients deal with their mental health problems effectively – a rewarding and vital role that helps to keep Canadians healthy. However, working with something as complex as the human mind has its difficulties.
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.
Thankfully, getting psychologist insurance doesn’t have to be complicated. At Zensurance, we’ve helped over 100,000 entrepreneurs protect their unique businesses with policies designed to cover what they need. If you want more information about the coverage available to you, we’ve answered your top questions about psychologist insurance below.
What is psychologist insurance?
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.
What does it cover?
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.
How much does it cost?
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
Who needs it?
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.
Common claims scenarios
Frequently asked questions