How much does insurance cost for physical therapists?
The cost of physical therapist business insurance depends on the policies you choose, the size of your practice, your risk exposure, and other factors. Save money on small business insurance by comparing quotes from different providers with Insureon.
Average physical therapy insurance costs for top policies
Here are the top insurance policies purchased by physical therapists and their average monthly costs:
- General liability insurance: $37 per month
- Business owner's policy (BOP): $75 per month
- Professional liability / medical malpractice insurance: $75 per month
- Workers' compensation insurance: $47 per month
- Cyber insurance: $81 per month
- Commercial auto insurance: $301 per month
Our figures are sourced from the median cost of policies for physical therapists who apply for quotes with Insureon. The median offers a better estimate of what your business is likely to pay because it excludes outlier high and low premiums.
General liability insurance
Physical therapists pay an average of $37 per month, or $445 annually, for general liability insurance. This policy is sometimes called public liability insurance.
General liability insurance covers common third-party risks at physical therapy offices and other healthcare facilities, such as a patient who slips on a wet floor and suffers a bodily injury, or accidental damage to a patient's property.
For example, if a physical therapist accidentally drops a patient's smartphone and breaks it while looking at a treatment plan, general liability insurance coverage would pay for the repair costs or legal fees if the patient sues.
It also helps pay for attorney's fees and other legal expenses if someone sues your business over copyright infringement or advertising injuries, including defamation.
Some physical therapists may need proof of general liability insurance to sign a commercial lease or secure a client contract.
Below is the average general liability policy for physical therapists who buy from Insureon:
Premium: $37 per month
Policy limits: $1 million per occurrence; $2 million aggregate
The per-occurrence limit is the maximum your insurer will pay for a single covered incident, while the aggregate limit is the most the insurer will pay for all claims during the policy period, typically one year.
General liability insurance costs depend on factors such as the coverage limits and deductible you choose, the size of your business, your business income, the amount of foot traffic you have, and any additional insured endorsements you select.
Learn more about how your insurance premium is calculated and how to save money on your general liability coverage.
Business owner’s policy
Physical therapy businesses pay an average of $75 per month, or $899 annually, for a business owner’s policy.
A BOP bundles general liability coverage with commercial property insurance to protect against common third-party risks and business property damage. It typically costs less than purchasing each policy separately.
A BOP covers accidents that injure patients or damage their property, along with damage to your own business property. Because of its increased coverage and affordability, it’s the policy most often recommended by Insureon’s agents.
This is the average business owner's policy for physical therapists who buy from Insureon:
Premium: $75 per month
Policy limits: $1 million per occurrence; $2 million aggregate
Deductible: $1,000
Physical therapists who have small practices and low risks are often eligible for a business owner's policy.
You can buy endorsements for your policy for broader coverage, though they come with a higher premium. For example, a physical therapy business might choose to add business interruption insurance to protect against financial losses from a temporary closure, or equipment breakdown coverage to cover losses from the unexpected breakdown of a piece of medical equipment.
The cost of a business owner's policy is based on a number of factors, including the value of your property, where you are located, and the number of employees you have.
Professional liability / medical malpractice insurance
Physical therapists pay an average medical malpractice insurance premium of $75 per month, or $905 annually. This policy is also called professional liability insurance.
Physical therapists often need this coverage to comply with state laws, or to work at a specific hospital or other facility. Because this is a claims-made policy, your coverage must be kept active to collect on a medical malpractice claim.
A professional liability insurance policy covers malpractice lawsuits resulting from an error, misdiagnosis, or failure to meet a standard of care. Even frivolous medical liability claims are covered.
For instance, suppose a patient's shoulder pain worsens after following your treatment plan. If they decide to sue your business, malpractice insurance would cover your defense costs, court-ordered judgment, or settlement, helping you to avoid financial loss.
Below is the average malpractice insurance policy for physical therapists who buy from Insureon:
Insurance premium: $75 per month
Policy limits: $1 million per occurrence; $3 million aggregate
One of the biggest factors affecting the cost of malpractice insurance is the type of professional services you offer, such as telehealth. Other factors include your claims history and the liability limits you choose.
Learn more about how your premium is calculated and how to save money on your malpractice insurance premium.
Workers’ compensation insurance
The average cost of workers’ compensation insurance is $47 per month, or $567 annually, for physical therapists.
This policy covers medical expenses and lost wages related to workplace injuries. It usually includes employer's liability insurance to protect against lawsuits from injured workers.
Businesses with employees typically must purchase workers' comp to comply with state requirements and avoid penalties. For example, all healthcare providers in California, Pennsylvania, and New York must carry workers' comp if they have one or more employees. Florida businesses need coverage when they have four or more employees, and coverage is optional in Texas.
Since health insurance plans can deny claims for injuries related to your job, workers' comp coverage is also recommended for independent contractors as a financial safety net and for peace of mind.
The cost of workers' comp depends on several factors, primarily the number of employees you have and their occupational risks. You can save money on workers' comp coverage by classifying your employees correctly and implementing a risk management plan to avoid work-related injuries and subsequent claims.
Cyber insurance
Physical therapists spend an average of $81 per month, or $976 annually, on cyber insurance. This policy is also called cyber liability insurance or cybersecurity insurance.
Cyber insurance helps your business recover financially after a cyberattack or data breach. It can cover data breach investigations, cyber extortion payments, and costs related to complying with your state's data breach laws.
A cyber liability insurance policy is especially crucial for physical therapy businesses that store protected health information and other personally identifiable information (PII) belonging to their patients.
The cost of cyber insurance and the coverage you need depend on the amount of sensitive information you handle at your physical therapy clinic.
Commercial auto insurance
Healthcare professionals, such as physical therapists, pay an average of $301 per month, or $3,608 annually, for commercial auto insurance.
This type of insurance pays for legal costs if your company vehicle injures someone or damages their property in an accident. It can also cover vehicle theft, vandalism, and weather damage.
Most states require commercial auto insurance for vehicles owned by a healthcare business. For personal, rented, and leased vehicles used for work purposes, look to hired and non-owned auto insurance (HNOA) instead.
The cost of commercial auto insurance depends on several factors, including your policy limits, the coverage options you choose, the number and value of your vehicles, and the driving records of anyone permitted to drive.
How are physical therapist insurance costs calculated?
Physical therapist business insurance coverage costs are determined by several factors. While underwriting your policy, insurance companies will consider the following when calculating insurance rates:
- Types of physical therapy services offered: Physical therapy businesses may see elevated premiums if they offer higher-risk services, such as dry needling or sports therapy, compared to businesses that only provide traditional physical therapy work.
- Business property and equipment: Physical therapists who operate with higher-value tools or equipment are likely to see more expensive premiums. Also, any items that are frequently used could cost more to insure than items that are used less often.
- Annual revenue and payroll: The more your physical therapy practice makes in a year and the more you pay your employees, the higher your premium will cost. That’s because increased revenue and payroll often indicate more clients and greater exposure to possible claims.
- Business size and structure: A solo practice with smaller premises and fewer patients will probably have less expensive premiums than a shared wellness center or multi-practitioner practice with larger premises and a higher number of patients.
- Location: If your physical therapy clinic operates in an area that is more prone to natural disasters, increased foot traffic, or high crime rates, you may have to pay higher insurance costs than a physical therapist located in an area where these factors are less present. Also, your state may require minimum specific malpractice limits.
- Years of experience: Physical therapists with established years of training and experience may be eligible for lower insurance rates than newer physical therapists with limited experience.
- Patient volume: The more patients you have, the more likely your premiums will increase since more patients offer higher chances of a claim being made.
- Claims history: A physical therapy practice with a lengthy list of previous insurance claims will likely pay more for insurance than one with no claims history.
- Types of coverage: For professional liability coverage, the type of policy you choose can influence your premium. Most professional liability policies for physical therapists are written on a claims-made basis, which generally starts with lower premiums that then increase during the first few years of continuous coverage. While occurrence-based policies are less common for professional liability insurance, they may be available for other types of business insurance.
- Number of employees: The more employees and physical therapists your business has, the greater the potential for mistakes or errors, property damage, and liability claims.
- Coverage limits and deductibles: Physical therapy businesses with higher coverage limits and lower deductibles on their insurance policies will typically see increased premium costs, while lower limits and a higher deductible can help keep their rates lower.
- Type of endorsements: Adding endorsements for specialized coverages, like telemedicine, may increase your premiums.
How do I get physical therapy liability insurance?
Insureon’s licensed agents work with leading U.S. insurance carriers to find the right coverage for your physical therapy business, whether you’re a self-employed solo practitioner or run a small medical practice with employees. If you decide to buy a policy, you’ll work with an account manager who specializes in business risks for physical therapists.
For medical malpractice coverage, you can contact our dedicated insurance agent by emailing [email protected] or calling (312) 854-2919. They can help you find insurance quotes for malpractice and other common policies that your practice needs.
You can buy other insurance policies online with Insureon in three easy steps:
- Fill out a free online application with details about your business.
- Compare custom quotes from top-rated U.S. insurance companies.
- Select a policy and pay the premium to begin coverage.
Our licensed agents are available to answer questions about your risks, state requirements, and how to save money on your physical therapist liability insurance. Most small business owners can get insured and a certificate of insurance (COI) within 24 hours of applying for quotes.
What our customers are saying
The average costs on this page were derived from our data on small business owners in the physical therapy field who purchased policies through Insureon. Most of our customers have less than five employees, annual revenue ranging from around $50,000 to more than $200,000, and five years or less in business.
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