Insurance for hypnotherapy

Professional liability insurance—also known as E&O Insurance—provides a number of benefits to hypnotherapists, such as coverage against both alleged and actual negligence, defense costs, personal injury and claims arising from past-rendered services. Fraudulent acts and property damage are not covered by professional liability insurance. This form of hypnotherapy insurance is, however, crucial for anyone who provides professional services or advice to clients.

• Protection even if you haven't made a mistake: You are treating a patient for extreme anxiety. The patient is a highly skilled programmer but finds it difficult to keep composed in the workplace. After working with you for several months the patient reported feeling more confident. But despite the therapy, the patient became extremely emotionally upset and could not appear at his job interview. The patient claims that you are at fault and makes a claim. Professional liability insurance could protect you if such a claim is made.
• Negligence: You are treating a patient for an eating disorder. While under hypnosis, you ask the patient to recall childhood memories, which, unbeknownst to you, include memories of abuse. The patient becomes severely depressed and requires hospitalization, and the family makes a claim against you for the associated costs. A professional liability insurance policy could protect you, including the cost to defend yourself.

If a client reacts negatively to treatment, accuses you of breaching a confidentiality agreement, or otherwise feels as if they've been damaged in some way by your services as a hypnotherapist, the risk of being sued should not be taken lightly. The solution is often to obtain a professional liability insurance policy customized to your Hypnotherapy business.      
 

While therapists can certainly benefit from getting professional liability insurance, there are numerous scenarios that aren't covered under this type of policy. General Liability—also known as a commercial general liability (CGL)—covers your business against any claims of bodily injury, associated medical costs and even property damage. 

• Bodily injury: You rent an office in a local professional building. The building keeps the floor highly polished and, as a result, a patient who was seeing you for weight loss advice trips and injures himself inside your office. The patient sues you for pain and suffering and medical costs. General liability insurance could protect you against third-party claims for personal injury.
• Damage to your landlord’s property: As a hypnotherapist, you rent a small office. You have lit candles in the treatment room and one of them is knocked over and catches fire. The landlord sues you for fire damage to that space as well as water damage to the adjacent spaces because the sprinklers turned on. General liability insurance could protect you against third-party claims for property damage, to the extent you are liable up to your policy limits.
• Lost wages: A client is on her way to her car in the parking lot of your building and trips on the front steps injuring herself. Her injury requires her to miss work for an extended period of time. Her medical costs and lost wages may be covered by your general liability policy, up to policy limits.

While your own property is not usually covered under general liability insurance, damage sustained to a third-party property—including via actions taken by your staff—typically will be. Learn more about general liability insurance costs to make a smart decision for your business.