Malpractice insurance is a necessity for any health provider, and that includes those that counsel others. Just as it is possible for a surgeon to be sued for being negligent or even sued erroneously, it is also possible for a mental health counselor. Just one lawsuit can be enough to ruin a person financially and so carrying appropriate coverage can offer protection against that Counselor Malpractice Insurance.
The source of a malpractice report can be another medical professional as well as a patient. If they do not, their right to practice may be challenged as well. All counselors are to accept and practice in accordance with a Code of Ethics published by the American Counseling Association. Fellow counselors can report colleagues when they suspect or know that the counselor in question has violated this code.
Malpractice insurance is a liability type of coverage and counselors can purchase additional types of policies for other areas of vulnerability. Defense costs, if they are necessary, can be covered wit Disciplinary Defense coverage. Things like libel, assault, and privacy violations would be covered under Personal Injury Protection. or PIP.
There is always an element of risk to working directly with people, especially when providing a service that deals with emotional charged or mentally disabled people. Unsatisfactory results or a soured relationship may be all it takes for a person to decide to make a claim of malpractice. Counselor malpractice insurance is required for if and when that happens, allowing the counselor to focusing on more important matters.