As a counselor, it is wise to carry coverage that exceeds employer-provided coverage—not only due to the risk of a judgment against you, but also the cost to defend against even a superficial lawsuit.
According to a 2014 report, malpractice lawsuits against counselors can cost an average of $46,921 and take years to resolve. You can help protect your financial stability and time with a Counseling Services Professional Liability Insurance policy.
What is Counseling Services Professional Liability Insurance?
Professional Liability Insurance—also known as Errors and Omissions (E&O) Insurance—is designed for professionals who provide advice, counseling, or other specialized services. While General Liability Insurance protects against accidents like slips and falls, Professional Liability Insurance covers claims related to the services you provide as a counselor.
The most common claims this policy helps cover include:
- Negligence
- Misrepresentation
- Violation of good faith and fair dealing
- Inaccurate advice
E&O Insurance: Protecting Your Counseling Services
Errors and Omissions Insurance is essential for organizations and individuals offering counseling or support services. For example, if you operate a suicide prevention hotline and a caller later causes harm to themselves, their family could allege negligence or failure to provide adequate care. In such cases, your policy may help cover legal defense costs and related expenses, up to the policy limits.
Contact a local insurance professional that has experience with this business category, someone that can guide you and help you procure the right insurance coverage.
Frequently Asked Questions
Who needs Counseling Services Professional Liability Insurance?
Any professional providing mental health or counseling services—including therapists, social workers, and hotline volunteers—should consider this coverage to protect against claims of professional error or negligence.
What types of incidents are typically covered?
This insurance often covers claims of professional negligence, inaccurate advice, breach of duty, and misrepresentation related to counseling services.
Does this insurance cover volunteer services?
Yes, many policies can extend coverage to volunteers, especially in nonprofit or hotline settings, though the specific terms can vary by insurer.
Is Professional Liability Insurance the same as General Liability Insurance?
No. General Liability covers physical risks like property damage or bodily injury, while Professional Liability focuses on claims arising from the advice or services you provide.
Still have questions? Talk to a local insurance expert.