Some type of mental health malpractice insurance is necessary before human development and mental health professionals are permitted to work with patients. Each individual in those fields is responsible to make sure to comply with the law in the resident state in which he or she will practice. Certain amounts may be required for a particular field, so a bit of research is necessary.
Individuals who work for a large company are normally covered under their employer’s liability insurance. This coverage, however, is intended for the protection of the employer and is not necessarily adequate for the individual. A professional needs his or her own separate policy to ensure proper protection in the event of a lawsuit for Mental Health Malpractice Insurance.
Mental health malpractice insurance is also necessary for those who set up private practices. Before opening the doors, the proper policy and coverage should be in place to protect the individual and the practice as a whole. If employees are involved, then an umbrella policy is important to protect the practice in the event of errors or misconduct of an employee. It may seem to the professional that it is not necessary to ensure against an issue such as sexual abuse or fraud for a trusted employee. However, patients can and do, sue for many reasons and the practice should not be left unprotected.
In the event of a lawsuit, having the right mental health malpractice insurance will make the difference in whether the professional can maintain the practice and stay in business. The insurance will pay legal fees for defense and provide a financial safety net for the mental health professional.