People who practice any type of healing or service connected to the health and well being of others will want to have insurance. The Therapist Liability Insurance will cover those practitioners who do not possess a degree or license in their particular field. Of course medical practitioners need coverage as well, but they usually get a different type of coverage for being a doctor or nurse.
Most states will require a therapist to have this coverage in order to practice there. If you are caught seeing patients without having this policy you could end up going to jail. The policy is created to protect both you and your patient by providing money in the event of a lawsuit.
Every year thousands of people file claims against doctors, lawyers and other specialists in all kinds of fields. The laws are not very specific when it comes to providing therapy services so it is harder to prove someone is certified at what they do.
There are a lot of therapeutic healers who practice holistic healing methods using crystals and massage techniques. These people will be different than someone who councils emotionally distressed individuals or drug users. Because the area is so gray when it comes to defining therapy, it is beneficial for all parties to have the proper insurance in place.
Basic liability will protect anyone who might incur injury or damage while in your care. If you run a business with other people employed, you want to have them covered on your policy as well. It can only take one lawsuit to drain your bank account and ruin your business.