Liability Insurance for Mental Health Counselors

Why Do You Need Liability Insurance for Mental Health Counselors?

Liability insurance for mental health counselors helps protect you from claims that aren’t related to your professional services. Also known as general liability insurance, this coverage can help therapists and mental health counselors pay for costly lawsuits, settlements or judgments.

As a mental health professional, you’ll likely need different types of business insurance to help protect against various kinds of claims. Together, this package of coverages makes up mental health counselor insurance. A few common policies include:

business owner protected by mental health liability insurance

Who May Need Mental Health Liability Insurance?

Our coverage solutions can help protect a variety of mental health professionals, including:

Licensed mental health counselors (LMHC)
Clinical psychologists
Marriage and family therapists (MFT)
Licensed clinical social workers (LCSW)
Substance abuse counselors
Behavioral therapists
School counselors

small business owner protected by mental health counselor insurance

What Type of Insurance Do I Need as a Mental Health Counselor?

Most counselors have a Business Owner’s Policy (BOP) because of the peace of mind it can provide, while helping protect against claims of bodily injury or property damage.

A BOP combines three essential types of coverage that many counselors need into a single policy:

General liability insurance to help protect your practice from claims that it caused bodily injury or property damage to others.
Commercial property insurance to help protect your owned or rented building, as well as office space, furniture, tools and equipment that you use to operate your practice. This can include your:
- Computers
- Couches and chairs
- Lamps
- Artwork
- Plants
Business income insurance to help replace your lost income if you can’t operate your practice because of property damage caused by a fire, theft or wind.

Professional Liability Insurance for Mental Health Counselors

While your work is rewarding, it comes with risks. Clients can sue for service-related claims. Professional liability insurance, or malpractice insurance, protects your practice and covers legal costs if sued. The Hartford partnered with Tivly to help you get a quote and coverage.

How Much Does Mental Health Counselor Insurance Cost?

The general cost for mental health professional liability insurance varies, but these are the average costs The Hartford’s customers pay for some common types of coverage:**

BOP: $1,687 a year, or about $141 a month
Standalone general liability insurance: $810 a year, or about $68 a month
Workers’ compensation insurance: $1,032 a year, or about $86 a month

It’s important to remember that the cost of your mental health counselor insurance may be different than the average. That’s because every business owner has unique needs, and insurers can use several factors to determine rates. The best way to find out how much you’ll pay for insurance is to get a quote.

business owner protected by mental health professional liability insurance

Proof of Insurance When You Need It

We know your time is valuable. That’s why we’ve made it easy for you to get proof of insurance online.

Covering Your Operations

Unexpected events, like a data breach, can put your business’ finances and reputation at risk. As a mental health counselor, insurance coverage can help ensure you’re prepared if there’s an interruption to your operations.

In 2023, an average of 364,571 health care records were breached every day.²

Employment Practices Liability Insurance (EPLI)

“I had to end a contract with a company that handles our patient portal because of constant issues with outages. The company sued my practice, claiming I harassed them.”

Employment practices liability insurance (EPLI) can help cover your legal costs if your practice gets sued for employment-related claims, including discrimination and harassment. With The Hartford, this coverage is part of a BOP and can help protect your business from accusations filed by customers or vendors.

Business Income Insurance

“One of the pipes in my office burst, damaging our computers and furniture. I had to close the doors for a week while repairs were made, which meant no in-person sessions with my clients.”

Business income insurance can help you continue to pay ongoing expenses like rent, payroll and utilities if you can’t operate temporarily because of covered property loss.

Taking Care of Your Team

Your counselors and staff are essential to your practice’s success. That’s why it’s important to protect them from the risks they face on the job. Business insurance coverage can give them peace of mind, so they can focus on caring for your clients.

Workplace slip-and-fall injuries result in an average of 14 lost workdays.³

Workers’ Compensation Insurance

“One of our counselors slipped on a patch of ice while walking into the office and fractured her wrist. She needed surgery and physical therapy.”

Workers’ compensation insurance gives your employees benefits to help them recover from work-related injuries or illnesses. It can help cover their medical bills and replace lost wages. With The Hartford, your employees also have access to a network of over 1 million providers and 65,000 pharmacies.

Data Breach Insurance

“My receptionist clicked on a spam email and fell for a phishing attack. I found out that our computers were hacked, and our clients’ personal details and session notes were stolen.”

Data breach insurance helps you respond to a breach if personally identifiable information (PII) or protected health information (PHI) gets lost or stolen. Some insurers call this coverage “cyber insurance.”

Protecting Your Property

You rely on your office space, equipment and furniture to run your practice. Damage to your business’ property can cause disruptions. The right insurance coverage can help pay your costs to repair or replace damaged property.

Car accidents caused an average of 21 days where an employee needed to take time away from work, have restricted work activity or transfer to a different job.⁴

Hired and Non-Owned Auto Insurance

“My office worker used his car to pick up supplies for the office when he rear-ended a truck.”

Hired and non-owned auto (HNOA) insurance helps protect your employees on the road if they use their personally owned vehicles for business.

Commercial Property Insurance

“I got the call no business owner wants to get – there was a fire in my building. The flames destroyed my furniture, computers and equipment.”

Commercial property insurance helps protect your business' equipment, furniture and tools from loss or damage caused by events like storms, fires or vandalism.

Mental Health Liability Insurance You Can Trust

Navigating the complexities of client relationships and ethical obligations in your counseling practice can be challenging. That’s why it’s important to partner with an insurance company you can trust. The Hartford has more than 200 years of insurance experience, and we know the risks your business faces. We can work with you to help you get the coverage your practice needs.

Find out more about other professions we insure:

Frequently Asked Questions About Liability Insurance for Mental Health Professionals

What Does Mental Health Counselor Liability Insurance Cover?

Mental health counselor liability insurance helps protect your practice from claims that your business caused bodily injury or property damage to someone else. For example, a general liability insurance policy can help cover a claim if your client trips and falls in the waiting room of your practice. Another example of liability insurance coverage for mental health counselors is workers’ compensation insurance. It can help your employees recover from a work-related injury or illness.

Why Is Mental Health Professional Liability Insurance Important?

Running a mental health practice requires protecting both your clients and your business. Mental health liability insurance helps cover costs associated with claims that your practice caused bodily injury or property damage. Without this coverage, your practice could face financially damaging lawsuits. In some states, certain types of liability insurance for mental health professionals are necessary, such as workers’ comp insurance.

How Do I Get Mental Health Counseling Liability Insurance?

The best way to get mental health counseling insurance from The Hartford is to get a quote. We’ve made it easy for you to customize an insurance quote for your specific needs in just a few minutes.

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Last Updated: April 10, 2025

** Costs, premiums, and coverages mentioned are estimates and are not guaranteed. Actual cost, premium, and coverage are determined at the time of quote or issue and are specific to an individual risk. Premiums are based on information provided to The Hartford, including, but not limited to, underwriting and rating criteria. All examples included on this website or in an advertisement are intended for informational purposes only and are not an offer or a guarantee of premium or coverage. Coverage and products described are subject to the terms and conditions found in the policy contract. Any educational information provided about available coverages does not modify the policy language or imply that any claim is covered. Products are not available in all states or for all businesses.

²HIPAA Journal, “Health Care Data Breach Statistics”

³National Safety Council, “Top Work-Related Injury Causes”

⁴ National Safety Council, “Roadway Incidents”

This page outlines in general terms the coverages that may be afforded under a policy from The Hartford. All policies must be examined carefully to determine suitability for your needs and to identify any exclusions, limitations or any other terms and conditions that may specifically affect coverage. In the event of a conflict, the terms and conditions of the policy prevail.

All Hartford coverages and services described on this page may be offered by one or more of the property and casualty insurance company subsidiaries of The Hartford Insurance Group, Inc. In Arizona, California, New Hampshire, Texas, and Washington by Hartford Fire Insurance Company, Hartford Casualty Insurance Company, Hartford Accident & Indemnity Company, Hartford Underwriters Insurance Company, Twin City Fire Insurance Company, Pacific Insurance Company, Limited, Sentinel Insurance Company, LTD (CA license #8701), Hartford Lloyd's Insurance Company, Hartford Insurance Company of Illinois, Hartford Insurance Company of the Midwest, Trumbull Insurance Company, Hartford Insurance Company of the Southeast, and Property & Casualty Insurance Company of Hartford and its property and casualty insurance company affiliates, One Hartford Plaza, Hartford, CT 06155.

Additional disclosures below.

The Hartford does not currently have a product available to provide the coverage described on this page. You are being referred to Tivly in an effort to connect you with a carrier who may provide this coverage. This link will redirect you to a third-party website, owned and operated by an independent party ("Tivly"). Any link you make to or from the Tivly website will be at your own risk. Any use of the Tivly website will be subject to and any information you provide will be governed by the terms of the Tivly website, including those relating to confidentiality, data privacy and security. The Hartford and its affiliates (collectively "The Hartford") do not endorse or approve and make no warranties, representations or undertakings relating to the content of the Tivly website. The Hartford assumes no liability for loss, damage and any other consequence resulting directly or indirectly from your access to the Tivly website or any information that you may provide on the Tivly website.