WHAT IS Counseling Liability
BREAKING DOWN Counseling Liability
Counseling liability is a form of liability risk faced by therapists, social workers, psychologists, and other professionals who provide counseling services. Just as doctors face the risk of claims of medical malpractice by their patients, so too do counselors face the risk of negligence claims from those they treat. Counselors provide specialized mental health services, providing therapy for individuals and families who face trauma, are dealing with grief, or are suffering from other mental difficulties. In order to mitigate exposure to counseling liability, individuals can purchase professional liability insurance.
Counseling liability is a risk for a number of professionals including family counselors, marriage counselors, substance abuse counselors, psychologists, social workers, speech therapists, and mental health workers. There are several types of insurances available to those at risk for counseling liability. Professional liability insurance can protect professionals against claims initiated by their clients, and is required by professionals who have expertise in a specific area as general liability insurance policies do not offer protection against claims arising out of business or professional practices such as negligence, malpractice or misrepresentation. Those affected by counseling liability may choose a more specialized form of professional liability insurance called errors and omissions insurance or E&O insurance, which protects companies and their workers or individuals against claims made by clients alleging inadequate work or negligent actions. E&O insurance often covers both court costs and any settlements up to the amount specified by the insurance contract.
Counselors may also purchase general liability insurance to cover claims made for bodily injury or property damage.
When does counseling liability happen?
Counseling liability can arise in a number of situations. For example, a family therapist suspects that a child is living in a potential abusive household, but fails to report this suspicion to the police or the local authorities. If the child is ultimately injured by his or her parents, the government may file a lawsuit on behalf of the injured child against the family therapist for not reporting the dangerous situation that the child was in.
Therapists may also face claims that do not involve physical injury. For example, a married couple seeks the advice of a marriage counselor to help them work out their problems and save their marriage. If the couple ultimately decides to get a divorce, they may sue the marriage counselor for not providing them the help that they needed. The claim that they file would be for professional negligence.