insurance for psychiatrists

why do psychiatrists need insurance?

A psychiatrist consults a patient. Malpractice insurance is essential for psychiatrists.

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Insurance for Psychiatrists


Malpractice insurance is essential to protect psychiatrists from the increasing number of malpractice claims. Recent insights from the Medscape Psychiatrist Malpractice Report 2019 reveal a stark reality—41% of U.S. psychiatrists have faced malpractice lawsuits at least once, with  wrongful death being the highest trigger for claims, at 31%

The litigation came at a complete surprise for 44% of psychiatrists, according to the report, With 87% firmly believing the lawsuits were unwarranted. Unfortunately, even frivilous claims have a negative impact on psychiatrists, with many having to invest over 40 hours to defend the claims, including record gathering, attorney meetings, and deposition preparations.

The stress of facing a malpractice claim without insurance cannot be understated. A successful claim could be financially devastating, especially for psychiatrists who are sole practitioners.

 

How much is malpractice insurance for psychiatrists?

Rates for psychiatrist medical malpractice insurance vary widely by factors such as your location, the size of the practice, coverage limits and claims history. Premiums for psychiatric practices start from $2,000 annually per practitioner.

A psychiatrist consults a patient. Malpractice lawsuits are regularly filed against psychiatrists.Rates and inclusions can also vary widely from carrier to carrier, which is why it’s best to work with Westwood Insurance Group. We analyze the insurance policies offered by different carriers and compare them to find the most suitable coverage for you. Cost alone can be misleading, Carriers for instance, may reduce the cost of a policy by increasing the deductible that you pay, before you can claim anything.

Westwood takes a more consultative approach to insurance than many other brokers or agents. We’re armed with a wealth of experience in the industry — We’ve seen first-hand what can happen when a medical professional or facility is underinsured. For that reason, we stay away from a one-size-fits-all approach.

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what types of insurance do psychiatrists need?

General Liability Insurance

General Liability Insurance

This is necessary for psychiatrists with their own facilities. It  covers medical expenses and attorney fees resulting from bodily injuries and property damage your facility or organization could be legally responsible for.

Business owner's policy (BOP insurance)

Business owner's policy (BOP insurance)

A Business Owner’s Policy (BOP) is a comprehensive insurance package designed for medical professionals with small to medium-sized businesses, providing a blend of liability protection and property insurance.

Professional Liability Insurance

Professional Liability Insurance

Professional Liability Insurance (malpractice insurance) overs any negligence or mistakes made by the individual psychiatrists during their practice. It differs from General Liability insurance, which covers the practice. 

Commercial Auto Insurance

Commercial Auto Insurance

This is relevant for psychiatrists who use a vehicle for your practice-related tasks. This insurance covers you against auto accidents, theft, and other vehicle-related incidents.

Workers Compensation Insurance

Workers Compensation Insurance

Workers Compensation Insurance is usually mandated by law, to protect psychiatrist practices and their employees in case of work-related injuries or illnesses.

Cyber Liability Insurance

Cyber Liability Insurance

Covers you against financial losses associated with data breaches, cyber attacks, and other cyber incidents. Insurers will usually conduct rigorous testing of your online system to fix vulnerabilities as part of this policy.

Contact Michael Richards now

Michael and the team at Westwood Insurance Group specialize in sourcing the best insurance for medical professionals and facilities at competitive prices.

You can call him on the number below or fill out the form and he will get your message directly:

Michael Richards

psychiatrists frequently asked questions

What does professional liability insurance for psychiatrists cover?

Professional liability insurance, often known as malpractice insurance, covers psychiatrists in case a client alleges negligence or professional misconduct. It helps with legal expenses and potential settlements. It can also cover your legal fees for licensing board hearings and other related proceedings. 

How much professional liability coverage do I need?

The minimum liability limit requirements vary depending on your state, so a quick check with your state licensing or regulatory board will reveal this. This is information that insurance carriers will also be aware of. Additionally, many hospitals, managed-care entities, and facilities typically mandate a minimum coverage of $1,000,000 per incident and $3,000,000 aggregate.

For those seeking higher coverage, options include liability limits as substantial as $2,000,000 per claim and $4,000,000 aggregate. It’s essential to note that higher limits may be available if mandated by your state. To ensure you have the appropriate level of protection, we need to carefully consider both state requirements and the expectations of institutions where you practice.

What is the difference between Claims Made and Occurrence coverage?

Claims Made and Occurrence are two common types of professional liability insurance coverage.

  • Claims Made Coverage: This type of coverage protects psychiatrists for claims made and reported during the policy period. It’s important to note that the incident and the filing of the claim must occur while the policy is active. Psychiatrists may need to purchase additional coverage, such as “tail” coverage, to protect against claims which are made after the policy’s expiration for incidences which occurred during the coverage.
  • Occurrence Coverage: Occurrence coverage protects psychiatrists for incidents that occurred during the policy period, regardless of when the claim is filed. Psychiatrists with occurrence coverage do not need to purchase tail coverage since the policy in effect at the time of the incident continues to respond to claims, even if the policy is no longer active.

Choosing between Claims Made and Occurrence coverage depends on individual preferences, circumstances, and the potential need for long-term protection. Psychiatrists should carefully evaluate the advantages and limitations of each type of coverage in consultation with their insurance advisor.

How can I control insurance costs without compromising coverage?

Psychiatrists can control insurance costs by implementing risk management strategies, maintaining a strong professional practice, and periodically reviewing and updating their coverage based on evolving needs. Ask us about risk mitigation strategies for psychiatrists.

Does professional liability insurance cover me for remote telepathy consultations?

Some policies may offer a degree of coverage, but if you engage in teletherapy services or telemedicine, you need to seriously consider telemedicine malpractice insurance, as you are introducing a number of new risks and professional liability insurance policies were not designed to cover these risks.

Why do I need cybersecurity insurance?

If you keep client records on a computer which is connected to the internet, or in a database which is networked, or on the cloud, you need cyber liability insurance.

If your clients’ sensitive information is compromised, you may face legal liabilities. Cyber liability insurance helps cover the costs of legal defense, settlements and for the consequences of information privacy violations (HIPAA), protecting you from potential financial ruin. With the rise of ransomware attacks, cybersecurity insurance can provide coverage for ransom payments, enabling you to navigate such situations without succumbing to extortion demands. 

Cyber liability insurance is an essential component of a comprehensive risk management strategy. It adds an extra layer of protection, allowing you to focus on your professional responsibilities with the assurance that you have measures in place to address potential cyber threats. 

Are there specific insurance considerations for psychiatrists working in private practice vs. those employed in institutions?

Yes, the insurance needs will vary. Private practitioners will need coverage for their practice, like general liability insurance,  or a business owners policy. They also need workers compensation insurance for all employees. Psychiatrists working in institutions, meanwhile may be covered by their employer’s policy, but it’s crucial to verify the extent of that coverage.

we've got you covered

General Liability Insurance

Protecting healthcare organizations against increasingly crippling litigation.

Professional Liability Insurance

Protecting medical professionals against increasingly crippling litigation.

Medical Malpractice Insurance

Protecting medical professionals against increasingly crippling litigation.

Cyber Liability Insurance

Protecting healthcare organizations & professionals against cyber attacks.

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855.351.7487

insurance for hospitals

Hospital Insurance typically covers all or part of the potential liability for hospital services. It includes medical malpractice, accidents involving hospital employees and equipment, care during surgery or any other invasive treatment, after-hours care arrangements by staff who need help with their children and more.

insurance for long term care facilities

Long term care facilities must protect themselves against potential liability arising from incidents within their facility. Westwood can help you negotiate a package tailored to your long term care facility client.

traditional insurance products

Westwood have fostered exceptional relationships with underwriters and we go to great lengths to keep abreast of their latest products, changes in requirements and restrictions, including having weekly calls with the carriers, which you can see here, by joining our insurance insider group.

    Insurance products at Westwood Insurance Group

    You can find more information on the Insurance Products main page.

    If you have any questions on the different policies, check out our Insurance FAQ’s

    alternative structures

    Westwood President, Michael Richards has extensive experience in setting up alternative structures for larger clients. Here are some examples:

     

    If you think your client could be large and stable enough to benefit from starting or participating in a captive or has a special need for another alternative structure, contact Michael Richards now by phone: 855 351 7487.