How much does therapy and counseling business insurance cost?

Therapy and counseling businesses pay an average of $56 per month, or $670 annually, for professional liability insurance. This policy is sometimes referred to as errors and omissions insurance or medical malpractice insurance.

Professional liability insurance offers critical coverage for therapists and counseling professionals, including legal fees related to accusations of professional negligence. For example, if a psychologist is sued over a misdiagnosis claim, this policy would cover the costs of a resulting malpractice lawsuit.

Though coverage is not usually mandated by state law, therapists and counselors may be required to obtain this policy to work at certain healthcare facilities or hospitals.

This is the average professional liability or malpractice policy for therapy and counseling businesses that buy from Insureon:

Premium: $56 per month
Policy limits: $1 million per occurrence; $2 million aggregate
Deductible: $500

The cost of professional liability insurance for counselors and therapists depends on several factors, such as the types of therapy services you offer (e.g., telehealth), your malpractice claims history, industry risks, and the policy limits you choose on your malpractice insurance policy.

Among therapy and counseling businesses that purchase a professional liability policy with Insureon, 46% pay less than $50 per month and 76% pay less than $100 per month.

Therapists and counseling professionals who work with higher-risk populations or specialize in certain areas (e.g., mental health) may pay more for malpractice coverage due to the increased risk. Providers will also look at the type of professional services you offer and your practice's overall risk level when determining your premium.

Across all therapy and counseling professions, learn how to get affordable professional liability insurance.

Therapy and counseling businesses pay an average of $29 per month, or $350 per year, for general liability insurance.

A general liability policy helps cover legal defense costs related to common third-party lawsuits from clients, including those related to customer bodily injury, damage to a client's property, and advertising and personal injuries.

This is the average general liability policy for mental health professionals and other therapy professionals who buy from Insureon:

Insurance premium: $29 per month
Policy limits: $1 million per occurrence; $2 million aggregate

The cost of general liability insurance depends on several factors, such as the coverage limits you choose, the size of your business, the amount of foot traffic you have, your location, and any endorsements you may add, such as an additional insured.

General liability insurance costs depend on your risk of a customer lawsuit. Therapists and counselors who see more clients will take on more risks, and thus may pay more for this type of insurance.

Among therapy and counseling businesses that purchase general liability insurance with Insureon, 66% pay less than $30 per month and 96% pay less than $60 per month.

Across all therapy and counseling professions, learn how to find affordable general liability insurance.

Policy limits are the maximum amounts your insurance company will pay for covered claims.

The per-occurrence limit is the most your insurer will pay for a single incident, while the aggregate limit is the maximum your insurer will pay on any claims during your policy period, typically one year.

Most therapy and counseling businesses (75%) choose general liability policies with a $1 million per-occurrence limit and a $2 million aggregate limit. As your small business grows, you may need to expand your policy limits.

Therapists and counselors pay an average of $48 per month, or $572 per year, for a business owner’s policy.

A business owner's policy, or BOP, bundles general liability coverage with commercial property insurance to cover both third-party risks and your business property. It typically costs less than purchasing each policy separately.

A BOP protects against customer injuries and property damage. It also covers damage to your physical building and office equipment. Because of its increased coverage and affordability, it’s the policy most often recommended by Insureon’s agents for small business owners who rent or own an office.

This is the average BOP for therapy and counseling businesses that buy from Insureon:

Insurance premium: $48 per month
Policy limits: $1 million per occurrence; $2 million aggregate
Deductible: $500

Small, low-risk therapy and counseling companies are often eligible for a business owner's policy.

Therapy and counseling small business owners may see higher costs if they choose to add endorsements to their policy. Insurance endorsements, such as business interruption insurance or equipment breakdown coverage, are often recommended to help avoid financial losses if a fire or power outage forces your business operations to cease for an extended period of time.

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, the number of employees you have, and your specialty.

Among therapy and counseling businesses that purchase a business owner’s policy with Insureon, 54% pay less than $50 per month and 86% pay less than $100 per month.

Businesses with large or more expensive business property will typically pay more for a BOP than therapy and counseling businesses with smaller premises or lower value business property. Your industry risk, years in operation, and claims history will also affect your premium.

For therapy and counseling companies, workers’ compensation insurance costs an average of $50 per month, or $599 per year.

This business insurance coverage helps pay for medical expenses when an employee is injured on the job. It also provides disability benefits while they're recovering and unable to work.

To comply with your state’s requirements and avoid penalties, therapists and other healthcare providers typically must purchase this coverage for their employees. It's also recommended for sole proprietors, as health insurance plans can deny insurance claims for medical bills when an injury or illness is related to your job.

Most policies include employer's liability insurance, which covers the cost of lawsuits related to employee injuries. There's usually no limit to how much a workers' comp policy can pay for employee benefits, though it depends on state laws.

The cost of workers' compensation insurance depends on several factors, including the number of employees you have and the level of risk involved with their jobs.

Get more information on how to find affordable workers' compensation coverage.

Among therapy and counseling companies that buy workers’ compensation insurance with Insureon, 34% pay less than $40 per month and 70% pay less than $80 per month.

Workers' comp costs depend on the number of employees you have in your small business. A larger workforce brings a higher risk of worker injuries, which is why bigger businesses tend to pay more for this type of insurance.

Small businesses, including therapy and counseling professionals, pay an average of $145 per month, or $1,740 annually, for cyber insurance. You might also see this policy called cyber liability insurance or cybersecurity insurance.

Cyber insurance helps therapy and counseling clinics recover financially after a data breach or cyberattack. It can help pay for customer notification costs, fraud monitoring services, and other expenses necessitated by state data breach laws.

The cost of cyber insurance depends on the amount of HIPAA and other personal information handled by your therapy and counseling company, such as customer credit card numbers, along with the number of employees who can access that information.

Small businesses, including therapy and counseling companies, pay an average of $147 per month, or $1,762 annually, for commercial auto insurance.

Most states require this coverage for vehicles owned by a therapy and counseling business. For personal, rented, and leased vehicles used by your business, look to hired and non-owned auto insurance (HNOA) instead.

A commercial auto policy provides financial protection in the event of an accident involving your business vehicle. It can help pay for property damage, medical costs, and legal expenses.

The cost of commercial auto insurance depends on several factors, including the policy limits you choose, coverage options, the value of the vehicles, the driving records of anyone permitted to drive, and additional insured endorsements you select.

Learn more about how to find affordable commercial auto insurance coverage.