Why do psychologists need insurance?
Claims of malpractice
You know the human mind is incredibly complex, so the road to recovery isn’t always linear. This means, whether you’re using psychological expertise in a clinical, health or therapy context, there’s a chance a treatment path may not go to plan. If someone feels the advice you’ve given has negatively impacted their mental wellbeing, they could make a claim. Fortunately, allegations of malpractice are covered as part of professional treatment liability insurance – for psychologists, it could provide indemnity to cover legal fees and compensation demands.
Accidents on placement
Working as a psychologist leads you to clients’ offices, where you provide training within their occupational health department. Unfortunately, during set-up for a presentation, you spill coffee on a high-specification laptop that isn’t yours – and your client seeks compensation. Public liability insurance can help protect a psychology business from the financial implications of claims related to property damage or injuries. It’s welcome reassurance since accidents that seem minor can lead to significant liability claims.
Office issues
Arriving at your office is usually straightforward – you unlock the door, step inside and begin typing up case studies or working on statistical analysis. One morning, however, an overnight flash flood has caused disruption. Your floors have buckled, equipment is beyond repair and responders say they need to investigate possible problems with electrical cables in the walls. Selecting property insurance can help a psychology professional to withstand problems that strike out of the blue.
What cover is included in insurance for psychologists?
Professional treatment liability insurance
You might suggest an innovative method to manage a mental health issue that’s been seeing promising results in other patients, only to face allegations it exacerbated symptoms for a certain client. Professional treatment liability insurance is designed for professionals whose work involves care. This cover offers support if a client claims you breached ethics, shared information without their consent or prolonged treatment for personal gain.
Public liability insurance
If a member of the public, such as a patient or pupil, faces injury or property damage and says you’re to blame, public liability can help. Including this cover as part of your policy can help with the cost of defence or settlement. When you work closely with people, accidents can easily arise in the workplace or at an event where you’re speaking about your field. Insurance provides financial support through the highs and lows of practice.
Commercial property insurance
If an out-of-the-blue event such as a fire or flood hits your psychology clinic or business premises, appointments may need to be cancelled while you invest time and money rectifying the problem. It might be a flash flood due to a storm, an overnight fire which sparked from a malfunctioning printer, or a gas leak in your staff kitchen which prompts a swift exit. Commercial property insurance for psychologists can fund investigation costs, protect your clinic from further imminent damage and help you recreate a tranquil space for your clients.
Psychologists may also find employers’ liability insurance to be beneficial, sometimes essential, if you expand your business and have hired others and personal accident cover too.
If you’re not sure what you need, tell us a little more about what you do. We’ll help you to build your quote and explore any other insurance needs.
Build my coverDoes my insurance cover working from home?
Yes, there are several types of insurance that may benefit psychologists who work from home, all or part of the time.
Our guide to insurance for home-based businesses outlines the key types you could require. This includes contents insurance for business equipment kept within the home and portable equipment cover for psychologists who travel between locations.
Considering ways to tailor insurance according to working arrangements might help to maintain comprehensive cover if your standard home or commercial property insurance policies don’t include working from home considerations.
Do I need specific qualifications or membership to get insurance cover as a psychologist?
At Hiscox, we don’t ask you to provide proof of qualification at the time of taking out insurance, but such evidence might be required in the event of a claim.
For this reason, it’s a good idea to ensure your qualifications and chartered membership status match up to the occupation details you provide.
For professional psychologists, having chartered membership with the British Psychological Society (external link) is typical. This marker of expertise is reserved for those who have completed an accredited degree or conversion course, plus specialist postgraduate training.
How much is business insurance for a psychologist?
The cost of business insurance for psychologists starts at just £10 per month with Hiscox. We allow for monthly payments and let you cancel anytime with no fees.
Individual costs will depend on the policies you opt to include, however, as well as the cover limits you select – higher sums of protection may cost more.
We also consider some information about the risks your business encounters when pricing quotes. Read more with our FAQ guide to business insurance costs.
What’s the right approach to social media content?Social media is an increasingly popular marketing tool, but utilising it is an art. Read Sue Llewellyn’s insights on creating shareable content.
What insurance do I need as a freelancer?Doing independent psychology work may bring specific risks – read our FAQ guide to freelancer insurance to get the right cover.
What is cyber insurance?Any business that uses the internet could be vulnerable to cyber-attacks. Find out how cyber insurance may help with our FAQ.