How Much Does Counselor Malpractice & Supplemental Liability Insurance Cost?

What happens if a client files a claim against you for something that happens in your day-to-day work as a counselor? You do your best to provide excellent care to everyone you work with, but accidents and mistakes can still happen. That’s why it’s important to understand the cost of liability insurance for counselors and understand what kind of coverage you need to protect your counseling practice.

In this guide, we answer the question, “How much does liability insurance for counselors cost?” and walk you through the different types of liability insurance you should consider having. We also discuss what affects liability insurance costs, the differences between different liability insurance products, and how to find affordable, high-quality policies.

What Types of Insurance Coverage Does a Counselor Need?

Depending on where and how you work with clients, you might need several types of liability insurance. Having the right policy ensures you get the coverage you need and, if necessary, payouts can be paid.

Here are a few common types of insurance policies for counselors:

• Malpractice insurance (aka professional liability insurance): $34–$429/year
• General liability insurance: $150/year
• Business owner’s policy (BOP): $53 per month
• Workers’ compensation: Starting at $1,000 per year
• Cyber liability insurance: Starting at $1,200 per year

Keep in mind that these are just average prices. A lot of factors can affect the cost of your premiums, including the state you practice in, the size and setting of your practice, the type of counseling or therapy you offer, how many claims you’ve made in the past, and whether you choose a claims-made or occurrence policy.

You’ll also typically pay more if you need a primary policy to cover a private practice than if you purchase liability insurance to supplement a policy you have through an employer.

What Is the Average Cost of Liability Insurance for Counselors?

Professional liability insurance, which includes medical malpractice insurance, covers claims relating to negligence, mistakes, or malpractice in your work with clients. This type of insurance is a must for counselors because even when you follow the ethical guidelines for your practice, clients or their families could still claim that you:

• Didn’t properly supervise a case or provide the standard of care
• Weren’t professional or ethical in your relationship with a client
• Failed to intervene when you suspected a client might harm themselves
• Gave inaccurate advice that didn’t support the client’s best interests
• Missed the signs that a client was being bullied or harassed
• Misinformed a client about their risk for or family history of a genetic disease
• Failed to identify circumstances that hindered a client’s addiction recovery
• Didn’t alert family or authorities of signs that a client might become violent
• Violated HIPAA when it wasn’t necessary
• Were responsible for or contributed to circumstances that led to a client’s death

Professional liability insurance can also be important when you’re not involved in a claim. For example, you might be called to testify at or record a deposition for a case involving your client. Having a professional liability policy would cover the costs of either appearing in court or preparing the deposition.

Professional liability insurance costs for counselors at Berxi

Here are some examples of prices you can expect to pay at Berxi. All are based on limits of liability of $1M/3M for a counselor working 40 hours a week in Massachusetts. Determining factors are claims-made vs. occurrence, employed vs. self-employed, and specialty (rates based on July 2025 data):

• $33.90/year for a claims-made policy for an employed alcohol and drug counselor
• $54.25/year for a claims-made policy for a self-employed mental health counselor
• $81.37/year for a claims-made policy for a self-employed life coach
• $105.95/year for an occurrence policy for an employed clinical social worker
• $169.53/year for an occurrence policy for a self-employed mental health counselor
• $224.40/year for an occurrence policy for a self-employed family, marriage, child development counselor
• $429.39 for an occurrence policy for a self-employed clinical rehab counselor

How Much Does General Liability Insurance Cost for Counselors?

If you see clients in their homes or at your office, you’ll want to consider general liability insurance in addition to professional liability. A general liability policy covers claims related to:

• Third-party bodily injury (which is why it’s sometimes called “slip and fall” insurance)
• Damage to your client’s personal property, such as if you accidentally break an antique lamp as you’re leaving their house after a session
• Personal or reputational injury, including if a client believes you wrongfully invaded their privacy
• Advertising injury, such as a client claiming you failed to provide them with the level of service you initially promised

Business.com reports that the average cost for general liability insurance is between $30 and $42 per month. Self-employed counselors who are Berxi customers can add general liability to their professional liability policy for $150 per year.

What Does a Business Owner’s Policy (BOP) Cost for Counselors?

A business owner’s policy, or BOP, combines three types of insurance coverage into one policy. When you buy a BOP, you typically get:

• General liability insurance
• Commercial property insurance to cover electronic equipment like computers and physical property like paper files in case of fire, storms, theft, or vandalism
• Business interruption insurance to cover expenses and lost income if you have to stop seeing clients for a while because your practice location or equipment is damaged in a disaster like a hurricane

It usually costs between $500 and $2,000 per year to bundle these policies, which could save you a lot on premiums compared to buying each type of insurance separately. But a BOP doesn’t include professional liability insurance, so you would still have to purchase another policy to cover medical malpractice claims.

What Does Workers’ Compensation Insurance Cost for Counselors?

If you decide to open a private practice and hire employees, you’ll have to purchase workers’ compensation insurance to cover their expenses if they get injured or sick as a result of the work they do.

Workers’ compensation policies pay for:

• Medical expenses
• Short- and long-term recovery expenses
• Disability expenses
• Lost wages
• Funeral or death expenses

The policy also gives you some protection as an employer. If you were to be sued by an employee for an illness or injury that workers’ compensation insurance covers, your insurer will provide legal representation to help you handle the proceedings.

Workers’ compensation can cost anywhere from $1,000 to $10,000 per year depending on factors like your state’s requirements, how many employees you have, and the level of risk involved in your employees’ jobs.

What Does Cyber Liability Insurance Cost for Counselors?

No matter where or how you work, you probably use a computer to collect, store, and send information about your clients and their cases. That information is critical to your practice, but a cyberattack could mean that you not only expose client data but also that your clients’ privacy and identities could be at risk. That’s why it’s a good idea to consider buying a cyber liability policy.

Cyber liability insurance is the kind of insurance you never want to have to use but will be glad to have if you wind up needing it. It covers all the costs associated with cybercrimes like data breaches, ransomware attacks, and system hacks, including:

• Ransomware payments to regain access to data
• Notifying clients in the event of a breach or attack
• Providing clients with credit monitoring and identity protection after an attack
• Noncompliance fees if a cybercrime is the result of failing to follow data privacy laws
• Legal fees if a client brings a lawsuit against you for something that happens as the result of a cybercrime

If you have a policy like medical malpractice through Berxi, you can contact customer service to add cyber liability protection. Rates start around $120 per year.

How to Get Affordable Medical Malpractice Insurance for Counselors

Now that you know what types of insurance you might need as a counselor, you’re probably wondering how to keep your premiums reasonable every month without sacrificing great coverage.

Fortunately, there’s a lot you can do to lower the cost of liability insurance. Here are a few tips to help you get the best deal:

• Buy directly from an insurance company instead of through a broker. Buying direct saves you the added cost of brokerage fees. At Berxi, this can mean saving on average as much as 20%!
• Choose appropriate limits of liability. Purchase only the coverage you need for the size and scope of your practice right now. If things change in the future, you can always make adjustments.
• Look out for hidden fees, interest, and deductibles. Read all the fine print before buying a policy. Unexpected fees can add up and raise the cost of your premiums, and a high deductible could leave you paying a lot out of pocket in the event of a claim.
• Find out if you qualify for discounts. Some professional organizations offer insurance discounts for their members. You may also be able to save with a “claims-free” discount if you don’t have any claims in your history.
• Ask about alternatives to paying monthly. Making lump payments every quarter, six months, or year is usually cheaper than paying month to month.
• Find out if you can combine policies through a BOP or other bundle option. Some insurers like Berxi offer discounts if you purchase additional policies as add-ons to your main policy, like adding general liability to medical malpractice.
• Reevaluate your practice. The insurance you need today may be different than when you first purchased your policy. You might be able to make changes like increasing your deductible or lowering your limits of liability to save on premiums.

Get Professional Liability Insurance for Counselors Starting at Just $34 Per Year With Berxi

Getting medical malpractice insurance through Berxi gives you flexibility to choose the amount of medical malpractice policy you need while saving money on additional coverage like general liability.

Berxi policies offer limits of liability ranging from $500,000 per claim and $1 million aggregate to $2 million per claim and $6 million aggregate.

A typical policy with limits of $1 million per claim and $3 million aggregate includes:

• Medical malpractice coverage
• HIPAA violation defense
• Licensing board protection defense
• Wage loss compensation
• Deposition expenses
• Reputation coverage
• Good Samaritan coverage
• Defense counsel from Berxi’s network of lawyers

And did we mention you get all this with zero deductibles and the assurance of financial strength ratings of A++ from AM Best and AA+ from Standard & Poor’s that comes from being part of Berkshire Hathaway Specialty Insurance Company?

Get a quote today to cover your counseling practice for less with a Berxi liability insurance policy.

 

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The views expressed in this article are those of the author and do not necessarily reflect those of Berxi™ or Berkshire Hathaway Specialty Insurance Company. This article (subject to change without notice) is for informational purposes only, and does not constitute professional advice. Click here to read our full disclaimer