Insurance for occupational therapists

Professional liability insurance—sometimes referred to as E&O Insurance—offers a number of possible benefits to occupational therapists, including coverage for negligence, bodily injury, defense costs, personal injury (i.e., libel and slander), claims arising from past-rendered services and more. While fraudulent acts and property damage aren't usually covered by professional liability, this form of liability insurance is crucial for those who either provide a professional service or regularly advise clients. 

• Negligence: A doctor recommends the services of an occupational therapist to an elderly stroke victim. The therapist sets up a plan to work with the patient to gain her mobility around her apartment, using her wheelchair. During the course of occupational therapy, when the patient is alone, she falls out of her wheelchair and has to be hospitalized. The patient believes that the accident was the fault of the occupational therapist for not providing adequate training. Professional liability insurance could protect the therapist against claims of negligence.

• Sexual misconduct: A long time client of an occupational therapist starts to speak and act as if there is a romantic relationship. The occupational therapist recognizes this is happening and asks the patient to find a new therapist. The client sues for abandonment and claims the therapist initiated the inappropriate relationship. Professional liability insurance could protect the occupational therapist against claims of negligence.

If a client reacts negatively to treatment, accuses you of breaching confidentiality agreements, or otherwise feels that they've been damaged in some way by your services, the risk of being sued can be quite high. Professional liability can come in many forms, including sexual misconduct, among others. The solution is to get professional liability insurance, a crucial tool for providing stability for all small businesses.

In addition to instances when occupational therapists can benefit from having professional liability insurance, there are numerous scenarios that are not covered under this type of policy. General Liability—also referred to as commercial general liability (CGL)—covers your business against claims of bodily injury, associated medical costs and property damage. 

• Bodily injury: A client is receiving occupational therapy at her therapist’s office. She is being treated for memory loss and is engaging in a series of memory exercises. When she stood up, she tripped over an area rug and injured herself. General liability insurance could protect the occupational therapist against third-party claims for bodily injury and related medical costs.

• Property damage: While in a client’s home, an occupational therapist knocks over and breaks an expensive sculpture. Hiscox may cover the cost to replace the sculpture, up to the policy's limits of liability.

• Personal injury: An occupational therapist is talking to a friend at lunch about a client in a false and unflattering way. The client learns of this discussion and sues for slander. Hiscox may cover the subsequent claim, up to the policy's limits of liability, and pay for an attorney if necessary.

Though your own property is not covered under general liability insurance, damage sustained to a third-party property—including via actions taken by your staff—will be covered. Learn more about how much general liability insurance costs for your business.