A Guide to Therapist Malpractice Insurance

If you or someone you know is a therapist or considering a career as a therapist, there are a few important factors to take under consideration. The most common factor is therapist malpractice insurance. There are several types of insurance specific to this career field.

Malpractice insurance is as important for therapists as it is for physicians or anyone else in a medical practice. In today's society, people do not hesitate to sue professional therapists if they feel that incompetence or an inadequate job has been performed. Therapists need protection from lawsuits (frivolous or not) just like any other professional.

The definition of medical malpractice is any negligence in treating or mistreating a condition that causes a patient harm, including any referral delay and misdiagnosis. Be sure to select the right type of insurance for your chosen specialization. The cost and coverage of your policy may differ dramatically from one company to the next.

There are three main types of malpractice insurance coverage: "Claims Made", which covers only the policy period, "Prior Acts", which covers any malpractice that occurred before the coverage was purchased (which makes it more expensive) and "Occurrence" coverage which is a combination of the previous two types of coverage and thereby most expensive.

There are a few determining factors in the cost of your policy, such as credit score, prior legal actions and previous insurance records. Your current employer may also be a factor. Government employees for example, are not required to obtain malpractice insurance. In this case the government will assume liability in place of the therapist.

Take your time in selecting the right malpractice insurance policy. It is an important part of protecting yourself and your career.