Question 1

What is a common misconception about Professional Liability (E&O) for Mental Health Practices?

Accepted Answer

Solo therapists think they have low claim exposure. Sexual misconduct allegations occur regardless of innocence; defending an allegation alone runs $100K+.

Question 2

What happens if mental health practices don't have Professional Liability (E&O)?

Accepted Answer

Patient suicide claim — wrongful death allegation against therapist for inadequate risk assessment. Settlement: $400K. Malpractice pays.

Question 3

What is a common misconception about General Liability for Mental Health Practices?

Accepted Answer

Office-based therapy still has slip/fall exposure.

Question 4

What happens if mental health practices don't have General Liability?

Accepted Answer

Patient trips — $9K. GL pays.

Question 5

What is a common misconception about Cyber Liability for Mental Health Practices?

Accepted Answer

Mental health PHI carries higher penalty exposure under state-specific laws than general medical.

Question 6

What happens if mental health practices don't have Cyber Liability?

Accepted Answer

Therapist's laptop with notes is stolen — notification to 280 patients, regulatory defense, lawsuits: $190K. Cyber pays.

Question 7

What is a common misconception about Workers' Compensation for Mental Health Practices?

Accepted Answer

Solo practitioners don't need WC; multi-therapist practices do.

Question 8

What happens if mental health practices don't have Workers' Compensation?

Accepted Answer

Receptionist injury — $8K. WC pays.

Question 9

What is a common misconception about Employment Practices Liability (EPLI) for Mental Health Practices?

Accepted Answer

Solo doesn't need; group practices do.

Question 10

What happens if mental health practices don't have Employment Practices Liability (EPLI)?

Accepted Answer

Terminated therapist alleges discrimination — $35K. EPLI pays.

Mental Health Practices Insurance Coverage Guide | RISKX