Why do psychotherapists need insurance?
As a psychotherapist, clients turn to you for guidance and support when they face difficulties. It is important to remember that if a client is unsatisfied with the outcome of your advice, they may hold you responsible.
Failing duty of care claims
Breaching a duty of care that causes harm to someone could result in you or your business facing legal action for professional negligence.
Accusations of negligence
An accusation of negligence could come your way for various reasons: failure to conform to required standards, damage or loss to a client, failure in duty of care or inappropriate conduct.
Threats of legal action for overstepping the boundaries
A psychotherapist must keep their clients safe by not crossing any professional boundaries. If a client feels like boundaries have been crossed, you could face a costly professional negligence battle.
Facing a professional body enquiry
If an enquiry from a professional psychotherapy body results in an investigation into your professional conduct, you could be found negligent and face costly legal claims from your clients.
Professional indemnity insurance for psychotherapy
Professional indemnity insurance protects psychotherapists against legal accusations of professional mistakes, negligence, breach of confidentiality, and more.
Psychotherapists advise on mental, emotional and behavioural conditions which can have significant real-life impacts.
Professional indemnity insurance is an affordable safety net should this advice go wrong and you need to defend a legal claim from one of your clients.
What does psychotherapy professional indemnity insurance cover?
Professional indemnity insurance covers a variety of legal scenarios stemming from accusations that what you did as a psychotherapist caused harm to your client.
Cover includes:
- Failing your duty of care
- Breach of confidentiality
- Causing harm
- Giving the wrong advice or recommendation
For example, you face financial demands from a client because:
- You inadvertently shared your client’s confidential information with an unauthorised party
- Your client claims their life has taken a turn for the worse following sessions with you
- A harm came to your client, which they claim was a result of your advice
- Your client accuses you of having crossed a professional boundary
Do student psychotherapists need professional indemnity insurance?
Student psychotherapists should have professional indemnity insurance when they start advising people.
Any guidance a student psychotherapist gives may be deemed professional advice, including advice given during training or gaining qualifications; this applies even if you’re not taking money for your services.
The therapy you provide can still have a life-changing impact on your clients, exposing you to accusations of wrongdoing, even when you’re a student.
Does professional indemnity insurance cover my psychotherapy sessions worldwide?
Your professional indemnity policy's ‘territory or geographical limits’ and ‘jurisdiction’ sections specify if your hairdressing insurance will respond when working in different countries.
Territory or geographical limits:
The territory or geographical limit specifies where you can virtually or physically deliver your services. For example: “Worldwide.”
Jurisdictional limit:
The jurisdictional limit specifies which legal jurisdictions your policy will defend you if you are sued. For example: “Worldwide excluding US and Canada.”
Contract governance:
Any contracts or agreements you enter into with your clients should specify the ‘governing law’ for that contract, which is the jurisdiction in which parties can seek legal remedy for breach of contract.
Avoid entering contracts not governed by your local jurisdiction and/or excluded by your hairdresser’s professional indemnity insurance.
If you work with US and Canadian clients, you can reduce your risk by not entering contracts governed by US and Canadian laws.
Switching your professional indemnity insurance
Typically, in the UK, if you cancel a professional indemnity policy, you can no longer claim against it.
Therefore, if you switch your psychotherapist insurance provider, be sure your new policy covers your past work; this is called “retroactive cover”.
Should I keep professional indemnity insurance if I take a break or retire from psychotherapy?
It’s wise to keep your professional indemnity if you’re taking a break or retiring from psychotherapy. Claims against professional misconduct can surface months or years after you delivered the work.
Remember: If you cancel your policy, your insurance coverage will end, including coverage for any previous work.
How long you keep your cover in place is up to you. Consider the type of psychotherapy you did and the likelihood that a client might bring a claim against you.
Public liability insurance for psychotherapy
Public liability insurance protects psychotherapists against legal claims arising from accidents, injuries and property damage.
Psychotherapists can have a lot of face-to-face contact with their clients. They may visit clients or have clients come to them; this exposes psychotherapists to public liability claims if an accident happens.
What does public liability insurance for psychotherapy cover?
Public liability insurance covers psychotherapists from claims of causing an accidental injury, property damage or loss. Public liability will provide legal defence and pay compensation if you become liable.
Cover includes:
- accidental injury or death
- accidental property damage
For example, you face financial demands because:
- A client visited you and tripped over a cable, injuring themselves.
- A client burned themselves while using your coffee machine.
- You visit a client and knock over their shelf of treasured possessions.
Other insurance psychotherapists buy
As a psychotherapist, the specific insurance you require will vary based on your individual circumstances. It's important to consider whether you have the financial means to handle a legal conflict and how you would manage a potential tax problem.
Commercial legal expenses insurance
Most commercial legal expenses insurance will protect psychotherapists against various tax and legal issues you may encounter due to your profession, which are not covered by professional indemnity or public liability.
At Suited, we combined £100,000 of commercial legal expenses insurance with helplines and other tools to better assist psychotherapists in dealing with these issues. We call this Business Legal Protect, and it’s part of your subscription.
Business Legal Protect provides advice and assistance with:
- Legal and tax matters concerning your business
- Criminal prosecution
- Unpaid invoices (over £200)
For example:
- HMRC investigates your tax affairs
- You are facing an investigation from a professional body
- You need legal help chasing a significant unpaid invoice
- You’re being taken to court for breach of contract
Electronic business equipment insurance
These days, psychotherapists rely heavily on electronic equipment to deliver their services. If your business depends on electronic equipment, consider electronic business equipment insurance to protect against lost, damaged or stolen equipment.
Psychotherapists we insure
Suited offers comprehensive insurance policies that cater to the needs of a wide range of psychotherapists, including:
- Interpersonal psychotherapists
- Group therapists
- Family therapists
- Behaviour therapists
- Cognitive therapists
- Art therapists
- Acceptance and commitment therapists
- Couples therapists
- Hypnotherapists
- Rapid transformational therapists
- Play therapists
- and more..
Shopping for psychotherapy insurance
Whether or not you decide to use Suited counsellor insurance to protect your psychotherapy business, it’s worth keeping the following in mind:
Cheap psychotherapy insurance
When choosing a psychotherapist insurance provider, it's important to consider not only their prices, but also their after-sales service. Some providers may offer lower prices but have poor customer support. To ensure you can easily get in touch with your insurance provider, at Suited we offer multiple contact options and respond promptly.
The reputation of the insurer is important
Insurance needs to be there when you need it most. The payout reputation of an insurer is essential. Suited only uses financially sound insurers with an A+ rating.
Many providers charge fees to amend or cancel
Low initial prices often hide additional charges to pay monthly, amend or cancel your policy. At Suited, we charge no other fees, and you can cancel anytime with no more to pay.
Some policy wordings are restrictive or have a high excess
Some providers will offer attractive prices, but it is at the expense of cover given. Suited professional indemnity and public liability have £0 excess.
