Professional Liability Insurance for Mental Health Counselors

As a counselor, medical malpractice coverage insures you against claims of negligence or of making a mistake that caused bodily harm to another. This includes providing you with a lawyer to defend yourself and the funds you can use to pay judgments or settlements.

AMOUNT COVERED: Typical limits of liability range from $500,000 per claim/$1 million aggregate to $2 million per claim/$6 million aggregate

If a claim is filed against you, we’ll retain a lawyer for you from our network of defense attorneys specializing in medical malpractice. We’ll also pay for related defense costs (e.g., lawyer fees, court fees, expert witness costs).

Note that these defense costs are outside the limits of your insurance. This means that their services don’t cut into the settlement fees you may need to pay after a ruling.

AMOUNT COVERED: Provided in addition to your policy’s limits of insurance

We work with your defense attorney to reach the best possible outcome for you. We won't settle a claim without your approval.

Your policy applies on a worldwide basis, as long as a claim is brought against you in the United States (which includes any U.S. territories or possessions).

If you provide professional care to someone who is not your patient in a first aid or emergency situation, and that person files a claim against you, your policy would still apply.

If a claim alleges that you violated privacy rules in connection with private health information, we provide you with access to counsel and will reimburse you for costs related to HIPAA proceedings — including relevant HIPAA fines.

AMOUNT COVERED: $25,000 per policy period

If the professional licensing authority is investigating matters related to your professional conduct, our policy provides you with legal defense.

AMOUNT COVERED: $25,000 limit per policy period

If we ask you to attend litigation activities (e.g., a deposition), our policy will reimburse you for actual lost wages and any necessary expenses you incur (e.g., travel, meals).

AMOUNT COVERED: Up to $1,000 per day

If you face a threat to your professional reputation, we can provide you with a crisis management/public relations consultant to help clear your name.

AMOUNT COVERED: $50,000 per claim

The policy applies if someone files a claim against you alleging that your premises or operations caused them bodily injury or harm.

AMOUNT COVERED: $1 million occurrence/$1 million aggregate

If you’re audited by either Medicare or Medicaid, we offer reimbursement for related accountant or attorney costs that result from the investigation or defense of the audit proceedings.

AMOUNT COVERED: $30,000 for a covered audit and related expenses

As a counselor, you strive to provide guidance and support for your patients – their well-being is your top priority. But regardless of how dedicated and diligent you are, there is always a risk that you could face a malpractice claim from a patient or their family. Even if you’re ultimately not at fault, malpractice claims and lawsuits can be a huge financial drain for counselors – not to mention the potential damage to your reputation. That’s where mental health professional liability insurance (a.k.a. “malpractice insurance”) comes in.

The right insurance policy can provide you with legal representation to defend yourself against claims of malpractice, as well as financial support to pay for any damages. And some mental health professional liability insurance policies, such as those offered by Berxi, can even provide you with the resources to defend your reputation and your professional license. Malpractice insurance doesn’t just help protect your career and financial well-being. It also gives you the confidence of knowing you’ll be covered in the event of a claim, allowing you to focus on what matters: caring for your patients.

Professional liability insurance for mental health providers can give you the financial support to survive a malpractice lawsuit brought by a patient or their family. Professional liability insurance typically covers legal fees, court costs and wage loss, and settlement fees and other damages. Berxi’s professional liability insurance policies can also provide you with legal defense from state licensing board actions, helping you protect your professional license. Our policies can also provide you with HIPAA violation coverage, as well as reputation defense in response to threats against your professional reputation.

Many agencies require providers to have mental health professional liability coverage. For other mental health providers, insurance isn’t mandatory. But whether or not you’re required to obtain a policy, mental health professional liability coverage can be a lifesaver if you ever face a malpractice claim or lawsuit.

Berxi tailors its policies for each and every customer, giving you the right coverage for your needs. We offer both occurrence and claims-made policy options, and a wide range of coverage options – typical limits of liability on Berxi policies range from $500,000 per claim/$1 million aggregate to $2 million per claim/$6 million aggregate. That means you can find a policy that fits your budget.

Plus, defense costs and legal fees are always outside the limits of liability, meaning attorney fees and other legal fees won’t detract from the amount of money available to pay for settlements and other damages. And all of our policies include a consent to settle provision, so we won’t settle a claim without your explicit consent. With mental health professional liability coverage from Berxi, it’s easy to find the right policy for your needs.

There are many ethical issues in counseling examples, which means there are a number of different risks that could result in a malpractice claim. Some of the most common causes of malpractice lawsuits against mental health providers include: breach of trust or privacy, such as an improper relationship with a client or a HIPAA violation; misdiagnosing or failing to diagnose a patient; improper treatment; alleged harm resulting from improper documentation; and data breaches.