Importance Of Insurance For Your Private Practice
/Cover Your Ass With Insurance
There may be more insurances you need to carry for your business dependent on your license and the state you practice in (so check with your board and state), but below are some details on the three main insurances your mental health and wellness private practice should carry.
Professional Liability Insurance
Professional liability insurance helps protect professional advice given to others. It assists in spreading out and defending the individual or business against a negligence claim made by a client, and damages awarded in such a civil lawsuit. Learn more about what professional liability insurance is here.
This should be held by every practicing individual and if you are incorporated in anyway (LLC, PLLC, S corp etc.) make sure you get a “professional policy” not an “individual policy”. The professional policy will cover both you and your business, an individual policy will only cover you.
If you are not incorporated now but will be in the future, you can always start with an individual policy for protection and then/if you become incorporated, you can switch your policy to a professional account. This is easy to do by simply calling your current provider and requesting the change.
Make sure you are specific about the services you provide, ways you provide them (in person, online, group, family…) and if you have a full or part time caseload to make sure you are receiving the appropriate coverage.
Where do I go to get a policy?
Some of the most popular are:
*Suggestion to get a quote from several and compare the numbers before signing a contract. Quotes can vary greatly by state/licensure/company.
General Liability Insurance
General liability insurance is often referred to as “business liability” insurance or “slip and fall” insurnace. It is a coverage that can protect you and your business from a variety of claims including bodily injury, property damage, personal injury and others that can arise from your business operations. This can typically be added onto your malpractice insurance policy quite easily and is often required by most landlords. Learn more about it here.
Where do I go to get a policy?
Some of the most popular are:
*Suggestion to get a quote from several and compare the numbers before signing a contract
Renters Insurance
You may need to get renters insurance dependent on your current office set up.
If you are going the traditional route and are renting a solo office, or several offices and furnishing them yourself, you definitely need to carry renters insurance. This is because your landlord’s insurance policy will typically only cover physical damage to the space and not your physical items in the space. So, let’s say there is a break in at your office, your landlord’s insurance would cover the broken windows, doors, or damage to the physical property but not your personal items that were taken (computer, couch, tables, decor, supplies…). That is where your renter’s insurance policy would step in and cover your computer, office supplies, telephones, etc. that were stolen. Learn more about renters insurance here.
If you are subleasing a furnished office or using a shared workspace such as b.mindful Louisville you may not have to carry property insurance (which can save you a lot of $ each year). With the subleasing model, clinicians are typically leaving minimal items on property (if any), and typically these items being inexpensive. With this structure, if there was an unfortunate event on property and those items where damaged or stolen, they may not even total up to the insurance deductible amount, therefore leaving you with the sole responsibility to pay to replace the items. Meaning, in some cases, the subleasing model can totally eliminate the need to carry renters insurance, therefore lowering the financial overhead by quite a bit and allowing the clinician to take home more money for themselves. .
*Most landlords will require your business to have renters insurance if you are completely furnishing the space, but most shared workspaces will have you sign a “property insurance waiver”. This allows you to save money each month by not paying for renters insurance when you aren’t leaving items on property but also lays down the line to protect the individual you are renting from.
Where do I go to get a policy?
Suggestion to check with your current homeowners or rental insurance agency to see if they offer coverage for commercial offices and if so, you can usually just add it onto your current policy.
Sharon Stivers is local to Louisville, KY and works with Kiely, Hines and Associates Insurance Agency and can assist you in getting navigating the insurance world and putting together a quote for you and your business.
State Farm can also provide quotes for you and your business.
OR add on specific property coverage to your current malpractice insurance (computer, expensive treatment tools you use…)
Please check with your attorney and insurance agent to ensure that the insurance choices you are making are the best and appropriate coverage for you and your line of work.
Disclaimer: This is not legal or tax advice. This information is for educational purposes only. You should consult with an attorney and insurance agent to determine which type of business insurance will best meet your needs.
Disclaimer: Each state will have varying needs and requirements, please check with your individual state to ensure you are checking all the boxes!
If you are in the Louisville, KY area and interested in learning more about the opportunities b.mindful Louisville has for you and your private practice, don’t hesitate to reach out t o Shannon Gonter.