Psychologists professional liability insurance helps protect you when allegations are made claiming that you made a professional mistake. When a patient feels that you did something wrong which caused them harm, they may sue you. This insurance is also known as Malpractice Insurance, and it helps protect you whether you are at fault or not.
If, for example, a patient asks you to prescribe him strong medications for depression he may be annoyed when you do not. If he claims that you made a professional mistake and sues you for pain and suffering, you will have to take steps to legally defend yourself. Without psychologists professional liability insurance, you will have to pay for your own litigation expenses while potentially losing income with time off work to deal with the allegations.
Depending upon the scope of your policy, Malpractice insurance pays for those legal expenses for you. It also pays for income losses caused by the legal action and it can pay for your patient’s settlements, judgments or awards when applicable.