Insurance for Family Counselors

Professional liability insurance—also called E&O Insurance—provides a number of potential benefits, including coverage for personal injury (libel and slander), negligence, defense costs and claims against past-rendered services. Though events such as fraudulent acts and property damage aren't usually covered by professional liability insurance, this type of insurance is crucially important for those who regularly provide professional services or advise clients, including most family counseling professionals.

• Protection even if you haven't made a mistake: A family counselor is working with a husband, wife, and teenage daughter. The couple is on the brink of divorce, and the daughter has been neglecting school. The family’s problems escalate, and they stops treatment. A few days later, the family informs the therapist of the daughter moving across country to live with a grandparent.  The mother is claiming that the situation was caused by the family counselor. Professional liability insurance could protect the counselor if such a claim is made.

• Negligence: A parent hired a family therapist to help her and her son deal with his substance abuse. After a few sessions, the son tells his parents that the treatment is working. A month later, however, the son is arrested for a DUI. The parent is irate and sues the counselor for negligence. Professional liability insurance could protect a counseling business against claims of negligence even if the company did not make a mistake.

Should a client react negatively to treatment, accuse you of breaching confidentiality agreements, or otherwise feel that they have been damaged in some way by the services you provide, the risk of getting sued can be high. You can protect yourself by getting professional liability insurance—an important tool for providing peace of mind to those in the family counseling profession. 
 

In addition to times when family counselors can benefit from professional liability insurance, there are some scenarios that are not usually covered under this type of policy. General Liability—also called Commercial General Liability (CGL)—covers against property damage, claims of bodily injury and associated medical costs.

• Bodily injury: A family counselor is seeing a husband and wife in her office. The wife slips and falls on the way to the restroom and hits her head against a wooden desk. As a result, she files a claim against the family therapist. General liability insurance could protect you against third-party claims for bodily injury.

• Slander: A family therapist is eating lunch at a local restaurant with a friend. They are having a conversation about one of the therapist's clients who is in the midst of a messy divorce. The conversation is overheard by the client’s neighbor, who tells the client what they over heard. The client sues the therapist for slander, but a general liability policy could protect them.

• Damage to third-party property: A family therapist goes to the home of their clients. When they arrive, the therapist accidentally knocks over a very expensive lamp in their foyer, breaking it. The client demands that the therapist replace the lamp. General liability insurance protects therapists against third-party claims of bodily injury, associated medical costs and property damage.

Though your property isn't usually covered under family counseling insurance, damage sustained to third-party property can be. Learn more about general liability insurance costs to make a forward-thinking decision for your business.