How Much Does Occupational Therapists Insurance Cost? 2025 Rates

Occupational therapists in the U.S. typically spend between $480 and $780 per year on business insurance. That equals about $40 to $65 per month.

What Drives Premiums

Several factors influence how much coverage will cost:

• Services offered – Therapists providing specialized treatments or working with high-risk patients may face higher liability costs than those offering standard care.
• Business size – Solo practitioners usually pay less, while larger practices with multiple employees face greater exposure and higher workers’ compensation requirements.
• Location – Operating in urban areas, regions prone to lawsuits, or places with higher crime rates can raise premiums compared to lower-risk areas.
• Claims history – A clean record helps keep costs down, while past claims can increase rates.

Why It Matters

Understanding these cost drivers helps occupational therapists budget wisely and select coverage that matches their risks. With the right plan, they can protect their practice, staff, and patients without overspending.

How Much Does Occupational Therapist Insurance Cost?

On average, occupational therapists spend between $480 and $780 annually on insurance. That equals about $40 to $65 per month. These figures are only estimates, and the actual premium depends on the details of your practice.

Why Costs Differ

No two occupational therapy practices face the same risks. A solo therapist working independently or within a small group of providers will usually pay less than a larger clinic employing several therapists and support staff.

Services and Risk Level

The type of services you provide plays a major role in determining costs. Specialized treatments, advanced equipment, or handling sensitive patient data can increase liability and cyber insurance needs compared to more routine therapy services.

Property Value and Location

Where your practice operates matters. Clinics in urban areas with higher crime or lawsuit rates often pay more for liability coverage. The size and value of your property, office equipment, and therapy tools also influence commercial property insurance costs.

Key Cost Drivers

Several factors influence how much you’ll pay for coverage:

• Services offered – Impacts professional liability and cyber insurance.
• Number of employees – More staff increases workers’ compensation requirements.
• Property size and value – Larger offices or costly assets raise property coverage costs.
• Claims history – Filing past claims often raises premiums, while a clean record can lower them.
• Business interruption and add-ons – Extra coverage options add to the total bill.

Why This Matters

Understanding these variables helps occupational therapists estimate insurance needs more accurately and budget for the real costs of protecting their practice. With the right coverage, you can safeguard your livelihood, staff, and patients without overspending.

Average Occupational Therapist Insurance Costs For Coverage Types

When it comes to protecting yourself as an occupational therapist, different types of insurance cover different risks. Understanding the average cost, coverage details, and what influences pricing for each policy type can help you build a more effective insurance plan. Here’s a closer look at the major coverages most occupational therapists need.

General liability insurance: $45 per month

Business owner’s policy: $69 per month

Professional liability insurance: $50 per month

Workers’ compensation insurance: $68 per month

Commercial auto insurance: $212 per month

Commercial property insurance: $67 per month

Cyber liability insurance: $123 per month

General Liability Insurance

The average cost of general liability insurance for an occupational therapist is about $45 per month.

General liability covers third-party bodily injury, property damage, and advertising injuries. For example, if a patient slips on a wet floor and gets injured, this policy would help pay for their medical expenses and your legal defense costs.

Typical policy limits are $1 million per occurrence and $2 million aggregate.

Factors that influence the cost include the business type (your services), location, office environment (if clients frequently visit your office), contract requirements, and previous claims history.

Average annual premiums by state:

Note: These estimates are based on average national General Liability Insurance premiums for occupational therapist businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on practice size, number of employees, location risks, claims history, and insurer underwriting practices.

Business Owner’s Policy (BOP)

The average cost of a business owner’s policy (BOP) is about $69 per month for occupational therapists.

A BOP bundles general liability insurance with commercial property insurance. It protects against customer injuries, property damage, and loss or damage to your office building, furnishings, and equipment. For instance, if a fire damages your computers and files, the BOP would help cover repairs and replacements.

Typical policy limits are $1 million per occurrence and $2 million aggregate for liability, with separate property coverage limits based on the value insured.

Cost factors include the size of your business, location risk (such as flood or crime rates), business revenue, number of employees, and any optional endorsements like cyber protection, equipment breakdown, or business interruption insurance.

Average annual premiums by state:

Note: These estimates are based on average national Business Owner’s Policy (BOP) premiums for occupational therapist businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on practice size, property value, location risks, claims history, and insurer underwriting practices.

Professional Liability Insurance

The average cost of professional liability insurance for occupational therapists is about $50 per month.

Sometimes called errors and omissions, this type of insurance covers claims relating to errors, emissions, negligence, or other financial losses that a customer or client experiences because of the advice you gave. For example, if a client claims that your occupational therapy caused them harm, impacting their ability to handle daily work tasks, this would help cover costs for medical care or lawsuits against you.

Typical policy limits are $1 million per claim, but higher limits are sometimes required by state laws or client contracts.

Cost depends on the size of your business, the services you offer, the number of years you’ve been in business, coverage limits, and claims history.

Average annual premiums by state:

Note: These estimates are based on average national Professional Liability Insurance premiums for occupational therapist businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on practice size, services offered, claims history, coverage limits, and insurer underwriting practices.

Cyber Liability Insurance

The average cost of cyber liability insurance for occupational therapists is $123 per month.

Cyber liability insurance covers the costs an occupational therapist might incur after a cyber incident. This is particularly important for any therapist that has to maintain patient PPI and HIPAA compliance. This extends to lost income after a cyber attack, forensic investigations, data recovery costs, regulatory fines, and the costs of informing customers about the attack.

Occupational therapists can benefit from this coverage if they handle any sensitive data, or if they want to cover gaps in their insurance.

Costs are based on factors like the size of your organization, the type of client data you handle, and the cybersecurity measures you already have in place.

Average annual premiums by state:

Note: These estimates are based on average national Cyber Liability Insurance premiums for occupational therapist businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on practice size, data sensitivity, claims history, coverage limits, and insurer underwriting practices.

Workers’ Compensation Insurance

The average cost of workers’ compensation insurance for an occupational therapist is around $68 per month.

Workers’ comp covers medical bills, rehabilitation, and lost wages for employees injured on the job. For example, if an employee trips and falls over loose cords, and breaks their ankle, workers’ compensation would cover their hospital visit and part of their lost wages while they recover.

Policy limits are regulated by each state, but typically include medical costs and a percentage of lost wages without a set cap.

Premiums are influenced by the size of your payroll, the type of work employees perform (whether in your office or on-site for each client), your claims history, and any implemented safety programs.

Average annual premiums by state:

Note: These estimates are based on average national Workers’ Compensation Insurance premiums for occupational therapist businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on payroll size, number of employees, claims history, and insurer underwriting practices.

Commercial Auto Insurance

The average cost of commercial auto insurance for occupational therapists is about $212 per month.

Commercial auto insurance covers vehicles owned or used by the business for accidents, theft, vandalism, or damage. For example, if an occupational therapist causes an accident while driving to a client’s home in a company car, this policy would cover the damages and any third-party claims.

Typical policy limits are around $1 million combined single limit (covering both bodily injury and property damage).

Factors influencing the cost include the number and type of vehicles, how often they are used, the driving records of employees, and whether you add endorsements like hired and non-owned auto insurance (HNOA) for employee-owned vehicles used for company services like driving to and from off-site services.

Average annual premiums by state:

Note: These estimates are based on average national Commercial Auto Insurance premiums for occupational therapist businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on the number of vehicles, driving records, claims history, coverage limits, and insurer underwriting practices.

Commercial Property Insurance

The average cost of commercial property insurance for an occupational therapist, when purchased separately, usually runs $67 per month. This rate can jump depending on whether you work at a large clinic or on your own.

Commercial property insurance covers damage to the office building and its contents due to fire, theft, vandalism, or certain weather events. For example, if a fire destroys equipment like exercise machines or computers, this policy would pay for repairs or replacement.

Typical policy limits are based on the replacement cost value of the insured property, which could easily reach into the hundreds of thousands depending on your location, building size, and equipment investments.

Premiums are determined by factors like the building’s age and construction type, fire safety systems in place, replacement cost of equipment, neighborhood crime rates, and whether you add endorsements such as professional liability or cyber protection.

Average annual premiums by state:

Note: These estimates are based on average national Commercial Property Insurance premiums for occupational therapist businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on property value, location risks (fire, theft, natural disasters), claims history, and insurer underwriting practices.

Occupational Therapist Business Insurance Costs By Provider

Occupational therapist business insurance costs will vary greatly depending on the insurance carrier. Use the table below to find average costs across different providers.

Note: These estimates are based on average small business insurance costs for occupational therapists, typically including professional liability (malpractice/errors & omissions), general liability, and business owner’s policies. Actual premiums will vary depending on factors such as clinic size, location, services offered, claims history, and coverage limits.

What Factors Impact Your Occupational Therapist Insurance Costs?

Insurance premiums for occupational therapists are determined by underwriters who assess the overall risk profile of your practice. Factors such as services offered, location, property value, and claims history all play a role in shaping costs.

Claims History

Frequent claims signal higher risk to insurers, which can raise premiums. A clean record often qualifies therapists for discounts and lower rates.

Property Value And Equipment

The size and value of your property, along with specialized therapy equipment or custom furnishings, directly affect commercial property insurance costs. High-value assets typically mean higher premiums.

Type Of Services

Not all therapy services carry the same risk. Occupational therapists who focus on injury recovery after workplace accidents or workers’ comp claims face greater liability exposure compared to those serving the general population.

Location

Where your practice operates matters. Clinics in urban, high-crime, or flood-prone areas often pay more for property and liability coverage, while suburban or lower-risk regions may benefit from reduced rates.

Size Of The Operation

The number of employees, square footage, and annual revenue all affect premiums. Larger practices face greater exposure to liability claims and higher workers’ compensation costs, especially when staff travel to client sites for consultations.

Policy Limits And Deductibles

Higher policy limits provide stronger protection but increase premiums. Choosing a larger deductible can lower monthly costs, though it raises your out-of-pocket risk when claims occur.

Optional Endorsements

Add-ons such as business interruption, cyber liability, or hired/non-owned auto coverage tailor protection to your practice’s needs but also increase overall costs. These are especially important for therapists handling sensitive patient data or operating in regions prone to natural disasters.

Insurance Provider

Rates vary among carriers. Some specialize in healthcare risks and may offer better pricing or flexible options for occupational therapists. Comparing quotes across providers can help secure the best deal.

How To Lower Your Occupational Therapist Insurance Costs

Running an occupational therapy practice can be costly, but your insurance premiums don’t have to overwhelm your budget. While coverage is essential, there are practical ways to cut costs without sacrificing protection.

Raise Your Deductible

Opting for a higher deductible is one of the simplest ways to lower monthly premiums. Just ensure your practice can comfortably cover the out-of-pocket amount if a claim arises.

Bundle Policies Together

Combining coverage often leads to savings. Many insurers offer a Business Owner’s Policy (BOP) that merges general liability and property insurance at a reduced rate. Adding workers’ compensation or professional liability through the same provider can unlock additional discounts while simplifying paperwork.

Ask About Discounts

Insurers frequently reward loyalty and upfront payments. You may qualify for reduced rates by signing a multi-year agreement or paying your premium in full instead of monthly installments.

Build Safer Facilities

Accidents and hazards can quickly drive up insurance costs. Installing non-slip flooring, keeping offices clutter-free, servicing vehicles regularly, and maintaining clear walkways all help reduce liability risks. Fewer incidents mean fewer claims, which lowers premiums over time.

Strengthen Your Safety Program

Workers’ compensation costs can be managed by focusing on staff and patient safety. Training employees on fire safety, maintaining clear emergency exits, and enforcing safe workplace practices reduces injuries. When fewer claims are filed, premiums stay lower.