Insurance for Psychiatrists

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Why do Psychiatrists need insurance?

Becoming a psychiatrist requires years of education, but also the skills to gain each patient’s trust. This trust is often built around the psychiatrists’ ability to give individualized advice or recommendations around the patients’ mental health.

Due to the close relationships formed between psychiatrists and patients, psychiatrists face a unique set of professional risks. Professional Liability insurance can help protect your practice and reputation.

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What is Professional Liability Insurance?

Professional Liability, otherwise known as E&O insurance, protects your business against claims of negligence, misrepresentation or mistake. Typically, the allegation is that your services, products or employees caused some form of financial damage to a third party. Regardless of fault, litigation is expensive, drains time and damages reputation. Professional Liability insurance can protect professional service providers from potentially devastating financial damages resulting from alleged negligence or error in the delivery of your services.

Coverage is provided for:

  • Attorney fees and other legal expenses
  • Costs and expenses related to a settlement
  • Costs and expenses related to a judgment

Professional Liability Insurance for Psychiatrists

Psychiatrists can face many types lawsuits from patients. These might include claims of professional negligence or an error or omission in the advice given. You could even be at risk for legal action if your instructions are misinterpreted by the patient.

Professional Liability insurance can help protect you from these types of claims and others. Your policy will pay for an attorney to defend you, cover the costs of legal fees, and even provide money for any settlements or judgements.

Without a Professional Liability insurance policy, you could be personally responsible for these costs, which could easily run into the thousands of dollars. Professional Liability can safeguard your practice, so you can focus on helping your patients.

General Liability Insurance

Psychiatrists may face other risks that are not covered by Professional Liability insurance. General Liability insurance can protect your small business against the risk of third-party injury and property damage.

For example, a patient visiting your office accidentally trips and suffers a serious cut. As a result of the fall, the patient requires stitches. General liability insurance will help cover medical expenses caused by the accident regardless of fault.

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