Protect Your Practice with Physical Therapy Professional Liability Insurance

Your physical therapy practice is at risk with every client you meet. While you work hard to do a professional job following all the proper practices, you never know when a mistake or a frustrated client will sue you for not doing your job professionally. This is why having physical therapy professional liability insurance for your company. 

What is Professional Liability Insurance for Physical Therapists?

Physical therapists are service providers, and it is recommended that most, if not all, service providers maintain a professional liability insurance policy. This protects them from accusations that they didn’t do their job right. The policy pays for settlements and legal defense when the physical therapist is accused of negligence, misrepresentation, or other unprofessional acts. 

Coverage Types

Professional liability insurance is a form of malpractice insurance designed for physical therapists’ medical practices. It pays when there is a claim suggesting that the physical therapist was either negligent or otherwise unprofessional in his work. Being unprofessional can mean a few different things, including omitting necessary information or misrepresenting one’s background. 

In some cases, but not all, professional liability coverage can cover HIPAA violations, depending on the situation. It’s important to note that it doesn’t cover all HIPAA violation claims, and physical therapists may also want to have a cybersecurity policy to cover data breaches.  

Policy Limits and Deductibles

Each policy will have limits set forth when you start the policy. A professional liability policy may have limits as low as $100,000 per claim, with deductibles being what you would owe in the event of a claim. Many professionals find $100,000 to be a low limit and choose policies with $1 million or more in coverage. This cap does not limit the legal defense paid by the insurance company but is instead the cap that can be paid as a settlement. 

Tail Coverage

Some policies offer tail coverage for claims. Tail coverage is an extended reporting period where you can make a claim for a certain period of time after you have ended the policy. Tail coverage is often found in per-occurrence policies compared to a claims-made policy where the claim must be made during the policy period.  

Why Physical Therapists Need Liability Insurance

There are several reasons why a physical therapist needs professional liability insurance. 

High Risk for Client Claims

Physical therapists often have a large client pool. This pool can be injured during treatment or as the result of treatment and is likely to file a claim if that happens. Because physical therapists have so many clients, the chances of a claim rise. 

Compliance with Regulatory Requirements

Physical therapists are licensed in the state where they practice. Depending on state law, there may be a regulatory requirement to obtain professional liability insurance to maintain a license. Physical therapists should check with local licensing boards to see how much coverage, if any, is required. 

Provide Services with Confidence

When physical therapists have professional liability insurance, they can work with clients with the confidence of knowing that they are protected. This gives them the freedom to go through exercises with clients without fearing financial loss due to a mistake. 

Risks and Scenarios Covered

Let’s look at some common scenarios that can happen to a physical therapist requiring professional liability insurance protection:

• Injury during treatment: It is possible for clients to get hurt while doing exercises either because of the strain or incorrect posture. This can be a liability to physical therapists. 
• Misdiagnosis or incorrect treatment: While most clients come in with a doctor’s diagnosis, if the physical therapist is giving a diagnosis, they can be held liable if it is wrong. 
• Failure to meet expected results: Clients want to regain strength and mobility. If this doesn’t happen, they may hold the physical therapist responsible for the lack of results. 
• Sexual misconduct and boundary violations: While the policy will not pay claims on sexual misconduct, it will defend a physical therapist accused of it as long as they don’t admit guilt. Policies will not pay for illegal activities, sexual misconduct included. 

How to Choose the Right Professional Liability Insurance

Before you choose a provider, you’ll want to assess your coverage needs. How much risk does your practice realistically have? Determine whether or not you need $100,000 or more in coverage. It may be helpful to speak with an insurance professional about this assessment. A professional can help you discern the risk and come up with a good plan. Once you have the coverage needs, you want to get quotes from more than one company on that coverage. See who can provide you with the coverage you need for less. Be sure to talk to the agent about exclusions on the policy so that you have an understanding of what is covered and what isn’t. 

Cost Factors and Ways to Save

Let’s take a look at the cost factors and ways to save on the policy.

Factors Influencing Premiums

Your professional liability insurance policy’s price is affected by several factors. The first is the coverage you choose. The more coverage you have, the more the policy will cost. Another factor is location. Some geographic locations are more prone to claims and lawsuits. This will negatively impact the price of your policy. The final consideration of cost is your claims history. A company with a clean claims history will pay less than a company with claims on its record. 

Discount Opportunities

Talk to your agent about discounts. You may get a discount for bundling with other insurance policies, such as a business owner’s policy or general liability policy. There may also be discounts for those who are members of professional organizations. Check with your agent for discounts from continuing education or other professional development. 

Frequently Asked Questions

Is Professional Liability Insurance Mandatory for All Physical Therapists?

Professional liability may be required by state licensing boards. Check with your local board to see if it is required for you. 

How Does Liability Insurance Differ for Independent Contractors vs. Employees?

Employees are covered under the practice’s professional liability policy. This means that all therapists working in the firm are protected from claims and financial liability. 

What if I Work in Multiple States?

While your requirements may vary from state to state, you only need one professional liability policy. The policy will cover you where you work. 

You’re Covered With Physical Therapy Professional Liability Insurance

It’s important for physical therapists to be covered with the right insurance policies. A professional liability policy is essential for therapists. Make sure to get the right amount of coverage and maintain professional business practices to avoid claims.