Why is insurance for occupational therapists a must?
Providing personal care for a loved one's elderly, sick, or disabled family member can take a toll, and accidents can happen. Occupational therapy insurance offers peace of mind by covering legal costs if a patient sues over negligence. It also pays for injuries, theft of equipment, and data breaches.
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6 insurance policies every occupational therapist should consider
These insurance products protect occupational therapists against common risks, and fulfill the requirements of state laws and client contracts.
General liability insurance
A general liability policy protects occupational therapy clinics against legal fees related to patient property damage and injuries, such as accidentally dropping a patient's smartphone.
- Accidental patient bodily injuries
- Accidental damage to a patient's property
- Defamation and copyright lawsuits
Business owner's policy
A BOP bundles commercial property insurance and general liability coverage at a discount. It's often the most cost-effective type of business insurance for occupational therapists who own medical equipment.
- Slip-and-fall injuries
- Personal injury lawsuits
- Stolen or damaged medical equipment
Professional liability / medical malpractice
A professional liability policy protects occupational therapy businesses against legal costs related to professional negligence. It's also called medical malpractice insurance.
- Treatment plans that worsen a patient's condition
- Failure to administer first aid
- Omissions in documentation
Workers' comp insurance
Most states require occupational therapy practices with employees to carry workers' compensation. It also protects sole proprietors against work-related medical payments that health plans can deny.
- Medical expenses from job-related injuries
- Disability benefits
- Lawsuits from workplace injuries
Cyber insurance
This policy covers costs related to cyberattacks and data breaches. It's strongly recommended for occupational therapists and other healthcare professionals who store patient info.
- Data breach notifications
- Fraud monitoring services
- Cyberextortion demands
Commercial auto insurance
Occupational therapists with business-owned vehicles must carry commercial auto coverage to comply with state laws. It helps pay for financial losses in an accident, including legal costs and property repairs.
- Auto accident injuries
- Auto accident property damage
- Theft of an occupational therapist's vehicle
Occupational therapy insurance costs
Here's a quick look at the average costs of common healthcare insurance policies purchased by TechInsurance customers. Most occupational therapists pay the following for coverage:
Professional liability: $46 per month
General liability: $29 per month
Workers' compensation: $62 per month
Factors that can influence your premiums include:
- Types of healthcare services you provide
- Number of employees
- Types of insurance purchased
- Size of business
- Deductibles and liability limits
- Policy exclusions
- Claims history
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Common questions about insurance for occupational therapists
Find answers to frequently asked questions (FAQs) about occupational therapy liability insurance coverage and more.
Is malpractice insurance for occupational therapists required?
Even though it's not often required by state law, there are still several reasons why an occupational therapist may need a professional liability insurance policy, also called malpractice insurance.
- You need it to sign a contract. Your employer will likely require you to carry malpractice coverage. You might need it to sign a client contract, join an occupational therapy health network, or work at specific homes or healthcare facilities.
- Your employer might provide limited coverage. Employers sometimes provide occupational therapists with malpractice insurance. However, your employer's insurance plan might only provide protection for a limited number of covered claims, or it might not provide sufficient coverage for a claim.
- You need protection against patient lawsuits. Anyone who is responsible for patient care should carry malpractice insurance as part of their risk management strategy. If you're accused of professional negligence, such as failure to improve a patient's ability to live independently, this policy can pay for your legal defense costs, including attorney's fees.
What other types of insurance do occupational therapists need?
You can buy additional types of insurance for more complete protection, such as:
- Telehealth coverage for lawsuits related to virtual appointments
- HIPAA defense coverage for violations of the Health Insurance Portability and Accountability Act (HIPAA)
- Sexual misconduct coverage for malpractice lawsuits related to violations of healthcare provider-patient boundaries
Can an occupational therapist be held liable for negligence?
Yes, most definitely. Occupational therapists are in direct contact with some of the most vulnerable patients, such as the elderly or disabled, which leaves them wide open to lawsuits over negligence.
Some examples of where you could be held liable for negligence include:
- Incorrect diagnosis of a patient's condition
- Failing to improve a patient's condition
- Sexual misconduct and other boundary violations
- Improper documentation
Fortunately, you can minimize your risk of being sued over negligence by implementing several risk management strategies. Examples include maintaining constant and clear communication with patients and their family members, keeping detailed documentation, and adhering to the standard of care for your profession.
Even with these strategies, there's no way to completely eliminate all risk. That's why professional liability insurance for occupational therapists, also known as professional indemnity insurance, is crucial for complete protection and peace of mind.
