Get a Counsellor Insurance Quote

What is counsellor insurance?

It is a policy created specifically for counsellors – professionals who provide guidance on social, personal and psychological issues. If you’re a diplomatic counsellor, however, then this one is probably not for you.

Given that you may be covering sensitive topics with your clients, you’re opening yourself up to potential liability issues – even if you are the most careful, most thoughtful counsellor in the world. First and foremost, everyone makes mistakes, and you’re unlikely to be the exception. Secondly, sometimes, issues arise even when you haven’t done anything wrong. For instance, you might get accused of something you didn’t do, whether because the client perceived a wrongdoing or misunderstood what your services entail.

But regardless of whether an incident occurs because of you, your client or some other unforeseen event, dealing with it may cost money. A lot of money. Insurance can mitigate most of these expenses and let you focus on your work. Yes, insurance is costs money too, but trust us – it’s nowhere near as costly as a potential incident.

Read on if you want to know more about counsellor insurance and if it’s the right choice for you.

Who needs counsellor insurance?

Are you a counsellor who assists clients with various mental health and personal concerns? Do you happen to be one of the following?

• Psychotherapist
• Psychologist
• Mental health counsellor
• Marriage and family counsellor
• Social worker
• Life coach

If yes, then counsellor insurance is for you. Whether you have your own private practice or you provide your services via a clinic, hospital or non-profit, insurance is a must. It’s especially necessary if you’re operating solo since you have no one who can cover you other than yourself.

New counsellors tend to go insurance-free, believing that it’s not for them – either because they are overconfident or because they are not yet aware of the kind of incidents that can occur in their field (and how easily they can happen).

The thing is that insurable incidents can occur at any moment. They can happen early in your career or late. Or never. In fact, regular incidents are not insurable at all. That’s what insurance is for – to protect you from those rare yet costly incidents. So, if you’re still just a beginner, we recommend buying insurance as soon as you can. After all, the last thing you want is for an expensive incident – such as a lawsuit – to tank your career before it even had a chance to take off.

What does counsellor insurance cover?

Counsellor insurance should cover you in the following areas:

• Professional liability: This one will protect you against claims of negligence, errors and omissions. Basically, if you’re ever accused of or sued for not delivering the service promised, or worse, causing harm to a client, this will cover the costs of a potential legal battle.
• General liability: This coverage will come into effect in case of property damage or if you are accused of causing bodily injury to a third party (alleged or actual). This is doubly important if you provide in-person services since your client can get hurt within your property (by slipping and falling, for example).
• Property damage: This covers damage or loss to your business property, including office equipment and furnishings. Whether it's due to fire, theft, or natural disasters, property insurance ensures that you can quickly recover and continue your practice with minimal disruption.

What insurance coverage add-ons are recommended for counsellors?

If you’d like to make your coverage even more robust, you can add the following:

• Cyber liability insurance: This will cover the costs associated with data breaches, including notification expenses, legal fees and credit monitoring for affected clients. Since data breaches are very common these days, this coverage can be invaluable.
• Business interruption insurance: This coverage compensates for lost income if your practice is temporarily unable to operate due to a covered event, such as a natural disaster or fire. It helps ensure that you can continue to pay expenses like rent and employee salaries, even when your business operations are halted.
• Personal accidents coverage: If you were to incur any medical expenses or lose income due to the injuries sustained during any of your sessions, this coverage would help you support yourself until you recover and are ready to get back to treating your clients.

How much does counsellor insurance cost in Canada?

There are multiple factors that can impact counsellor insurance. However, given that many counsellors operate on their own, you can expect your insurance to start at around $500 per year. Most single-person businesses shouldn’t pay more than $2,500 per year. That said, your claim history, the type of practice you run, your experience and multiple other factors can all affect your yearly rate. Generally, the more risk your practice poses, the more you’ll pay in premiums.

If you run a practice that has multiple counsellors, then your premiums may even exceed $2,500 per year. More counsellor equals greater chance of an incident occurring. Furthermore, as is the case with home insurance, your location can also play a role since locations that have more disasters tend to get higher premiums.

The easiest way to find out how much you’ll pay is by consulting comparison sites like RATESDOTCA, where you can compare multiple quotes at once – in just a few minutes.

What factors determine the cost of counsellor insurance?

Some of the biggest factors to influence your counsellor insurance premiums will include the following:

• Your claims history: The more claims your practice files, the higher your insurance premiums will be. The general rule of thumb is to not make a claim unless it’s a huge incident. A shattered coffee mug or damaged computer keyboard are probably not worth the hassle. A lawsuit, on the other hand, or a disaster that damages half your building is definitely worth it.
• Experience level: More experienced counsellor practices may receive lower rates due to their established trustworthiness and lower chance of incidents.
• Location: Rates can vary significantly based on geographic location and the associated risks within that area – similarly to home insurance. If an area is more prone to certain disasters, it will see higher rates. This applies to everyone in the area, not just you.
• Type of counselling: Certain types of counselling are riskier than others. For example, if you deal with clients who are prone to self-harm, there’s a greater chance of your client suing for not handling the issue delicately enough.

How does counsellor insurance work?

Counsellor insurance works by providing financial protection against various risks associated with running a counselling practice. When you purchase a policy, you pay a premium to the insurance company in exchange for coverage. In the event of a covered claim, the insurance company will cover the costs up to the policy's limits, minus any deductibles.

For example, if a client files a lawsuit against you alleging professional negligence, your professional liability insurance will cover the legal fees, court costs, and any settlements or judgments, up to the policy limit. Similarly, if your office is damaged in a fire, your property insurance will cover the repair or replacement costs, ensuring you can quickly resume your practice.

It's important to thoroughly understand the terms and conditions of your policy, including what is and isn't covered. Regularly reviewing and updating your coverage ensures it remains adequate as your practice grows and evolves. Working with an experienced insurance broker can help you tailor your coverage to meet your specific needs.

How to get the cheapest counsellor insurance quote

If you’d like to save some money on your counsellor insurance, here some steps you can take:

• Compare quotes: Use online comparison tools, such as RATESDOTCA, to evaluate different insurance providers and their offerings.
• Bundle policies: If you require multiple types of insurance, bundling them with the same provider can often result in discounts.
• Increase deductibles: Opting for a higher deductible can lower your premium, though it means paying more out of pocket in the event of an incident. So, don’t set your deductibles too high, or you may not be able to afford them.