Professional Liability Insurance for Therapists
By Rob Watson Towergate Professional Risks
Professional Liability Insurance for Complementary Therapists
If you practice Complementary Therapy, you may well be aware that Professional Liability insurance is available for practitioners. A growing number of therapists are taking out cover, and though it is not a legal requirement, many professional associations recommend, or in some cases even insist, that their members have a policy in place. However, you may be forgiven for asking what exactly this insurance is, what it covers, and why you might need it.
A Complementary Therapy practitioner, much like any other professional, could be increasingly vulnerable to claims for compensation from clients and other third parties. For a sole trader or small business, the consequences could be very serious, as claims often run in to thousands of pounds.
Professional Indemnity insurance gives practitioners a way of protecting themselves in the event that they should be sued as a result of their business activities. Having such insurance in place demonstrates your professionalism, and if you have this insurance you should make potential new clients aware of this. They will get peace of mind from the fact that should anything go wrong, you are backed by insurance to compensate them for any loss or injury they suffer.
What it covers
Professional Liability insurance is designed to cover as broad a range as possible of ‘civil liabilities’ – in other words, most of the things you could get sued for as a result of your business activities.
Typically, it includes cover for Professional Indemnity, Public Liability, Products Liability and Libel and Slander. In the past, these covers might have been bought separately, but nowadays these can usually be provided under one policy.
So, what exactly does each of these sections cover?
Professional Indemnity relates to the advisory or therapeutic part of your work and covers any malpractice, errors or omissions on your part. If your client suffered a loss which was deemed to be a result of your advice – for example, the type of treatment to be carried out – as opposed to the physical treatment they received – this section of the policy would apply.
Public Liability relates to any other loss or injury resulting from your professional dealings with the client. These could be specific to the treatment, such as an injury following massage treatment, or more general, such as a client tripping over a briefcase you had left lying around.
If you sell any products to your clients to complement their treatment, such as supplements and vitamins, a relaxation CD or a book, you could also be liable for any losses occurring as a result of the use of these products, even if you did not manufacture them yourself. The Products Liability section covers this type of claim.
The final section is Libel & Slander. To many, this may seem like a strange type of insurance cover for a complementary therapist to have. However, the complementary medical profession is a very collaborative one. Many experienced practitioners will share their expertise with others at local association meetings and even at larger trade shows and exhibitions. They might even publish their thoughts in newsletters, journals, websites, blogs or podcasts. Before they know it, some practitioners could find their words and opinions are seen by thousands of people world wide. If you shared your thoughts with other practitioners and inadvertently made a comment which another party felt was defamatory against them, they may consider taking action against you for defamation.
The claims process
As with most types of insurance, it might only be in the event of a claim that you really see the benefit of having a policy in place. If you do receive a claim, or have any reason to think you might receive one, you should contact your insurer or broker straight away. They will know exactly what to do or say, and also what to avoid, to ensure that any harm done is mitigated.
Some claims will be more straightforward and can be dealt with very quickly and amicably. If however, the claim is more complex, the insurers will take whatever action necessary, even appointing a solicitor if required, on your behalf. Typically, a policy will cover your legal costs and the insurer will pay solicitors directly so there is usually no need for you to incur any cost defending the claim, unless an excess applies under the policy (where you agree to pay the first amount of any claim).
If a compensation claim should arise, for some smaller practitioners it is possible that Professional Liability insurance could make the difference between a business surviving or not surviving.
Rob Watson is Sales & Marketing Manager for Towergate Professional Risks in Leeds and has previously held marketing management positions in energy, telecoms, financial services and professional bodies.
He holds the Chartered Institute of Marketing (CIM) Postgraduate Diploma, E-Marketing Award and 'Chartered Marketer' status. He is also a tutor for the CIM diploma qualifications.
This article was posted by Towergate Professional Risks .
