How Much Does Therapy And Counseling Business Insurance Cost? 2026 Rates

Therapy and counseling practices in the United States typically spend between $720 and $960 per year on comprehensive business insurance, which equals about $60 to $80 per month. Actual premiums vary depending on the services offered and the overall risk profile of the practice. Several factors influence how much coverage will cost, including services offered, size of the business, location, and claims history.

How Much Does Therapy And Counseling Business Insurance Cost?

On average, therapy and counseling practices in the United States spend between $720 and $960 annually on a full insurance package. That equals about $60 to $80 per month. These figures are only estimates—actual premiums vary depending on the size and scope of your practice.

Every therapy and counseling business faces unique risks, so premiums are never one‑size‑fits‑all. For example, a small office offering basic CBT for mild depression will typically pay less than a larger clinic with multiple therapists providing specialized services such as trauma recovery, PTSD counseling, or personality disorder treatment. The more complex the services, the higher the liability exposure—and the higher the insurance costs.

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

• Services offered.
• Number of employees.
• Property size and value.
• Claims history.
• Business interruption and add‑ons.

Understanding these variables allows therapy and counseling practices to better estimate their insurance needs and plan for the true costs of protecting their operations. The right coverage ensures that staff, clients, and sensitive records remain safeguarded—without stretching the budget unnecessarily.

Average Therapy And Counseling Business Insurance Costs For Coverage Types

When it comes to protecting your therapy and counseling business, 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 therapy and counseling businesses need.

• General liability insurance: $60 per month
• Business owner’s policy: $141 per month
• Professional liability insurance: $60 per month
• Workers’ compensation insurance: $51 per month
• Commercial auto insurance: $145 per month
• Commercial property insurance: $130 per month
• Cyber liability insurance: $140 per month
• General Liability Insurance

The average cost of general liability insurance for a therapy and counseling business is about $60 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 therapy and counseling businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on practice size, services offered, claims history, geographic risks, and insurer underwriting practices.

Business Owner’s Policy (BOP)

The average cost of a business owner’s policy (BOP) is about $141 per month for a therapy and counseling business.

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 therapy and counseling businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on practice size, property value, services offered, claims history, geographic risks, and insurer underwriting practices.

Professional Liability Insurance

The average cost of professional liability insurance for therapy and counseling businesses is about $60 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 therapy caused them harm, or didn’t help them at all 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 therapy and counseling businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on practice size, services offered (e.g., individual therapy, group counseling, specialized treatments), claims history, geographic risks, and insurer underwriting practices.

Cyber Liability Insurance

The average cost of cyber liability insurance for therapy and counseling businesses is $140 per month.

Cyber liability insurance covers the costs a therapy and counseling business 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.

Therapy and counseling businesses 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 therapy and counseling businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on factors such as practice size, online booking/payment systems, patient data storage, claims history, geographic risks, and insurer underwriting practices.

Workers’ Compensation Insurance

The average cost of workers’ compensation insurance for a therapy and counseling business is around $51 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 therapy and counseling businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on payroll size, number of employees, claims history, geographic risks, and insurer underwriting practices.

Commercial Auto Insurance

The average cost of commercial auto insurance for therapy and counseling businesses is about $145 per month.

Commercial auto insurance covers vehicles owned or used by the business for accidents, theft, vandalism, or damage. For example, if a therapy and counseling business employee causes an accident while driving on a work-related errand, 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 therapy and counseling businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on the number of vehicles, driving records, claims history, geographic risks, and insurer underwriting practices.

Commercial Property Insurance

The average cost of commercial property insurance for a therapy and counseling business, when purchased separately, usually runs $130 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 therapy office 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 therapy and counseling businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on property value, geographic risks (e.g., flood, hurricane, wildfire zones), claims history, and insurer underwriting practices.

Therapy And Counseling Business Insurance Costs By Provider

Therapy and counseling 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 therapy and counseling practices, typically including general liability, professional liability (errors & omissions/malpractice), property coverage (office equipment and furnishings), and workers’ compensation. Actual premiums will vary depending on factors such as practice size, number of therapists, services offered (e.g., individual counseling, group therapy, specialized treatments), location, claims history, and coverage limits.

What Factors Impact Your Therapy And Counseling Business Insurance Costs?

Insurance premiums for therapy and counseling practices are calculated by underwriters who assess your overall risk profile. From the services you provide to your claims history, several factors determine how much you’ll pay for coverage.

Type Of Services

Not all practices carry the same risks. Clinics that treat severe mental health disorders face higher liability exposure compared to those offering general counseling or basic CBT.

Location

Where your office operates plays a major role. Practices in high‑crime, flood‑prone, or urban areas generally pay more for property and liability insurance. Suburban or rural locations with fewer claims often benefit from lower premiums.

Size Of The Operation

The larger your practice, the greater the exposure. More square footage, employees, and higher revenue increase the likelihood of claims. Workers’ compensation costs also rise with bigger staff counts, especially if therapists travel to client sites.

Property Value And Office Equipment

High‑value training tools, technology, or custom furnishings in waiting rooms drive up commercial property premiums.

Claims History

Past claims are a key factor. Frequent claims signal higher risk and lead to higher rates, while a clean record can qualify you for discounts.

Policy Limits And Deductibles

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

Optional Endorsements

Add‑ons such as business interruption, cyber liability, or hired/non‑owned auto coverage tailor protection to your needs but raise premiums. These are especially important for practices handling sensitive client data or operating in disaster‑prone regions.

Insurance Provider

Not all insurers price coverage the same way. Some specialize in health‑related risks and may offer more competitive rates or flexible options for therapy and counseling businesses. Comparing quotes across multiple carriers is one of the best ways to save.

How To Lower Your Therapy And Counseling Business Insurance Costs

Running a therapy or counseling practice can be costly, but your insurance premiums don’t have to overwhelm your budget. While coverage is essential, there are practical strategies to reduce expenses without sacrificing protection.

1. Bundle Your Policies

One of the simplest ways to save is by combining multiple policies. Many insurers offer a Business Owner’s Policy (BOP) that packages general liability and property insurance at a reduced rate. Adding workers’ compensation or professional liability coverage through the same provider can unlock further discounts and simplify administration.

2. Ask About Discounts

Insurers often 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.

3. Implement Safety Measures

Accidents and liability claims drive up costs for both you and your insurer. Proactive steps—such as installing non‑slip flooring, using wet floor signs, keeping walkways clutter‑free, and servicing company vehicles regularly—help reduce risks. These measures can lower premiums for general liability, workers’ compensation, and professional liability coverage.

4. Create A Safe Working Environment

Workers’ compensation costs can be managed by focusing on staff training and preparedness. Fire safety drills, clear emergency exits, and ongoing workplace safety programs reduce accidents. Fewer claims mean lower premiums over time.

5. Adjust Your Deductible

Opting for a higher deductible is a straightforward way to lower monthly premiums. Just ensure your practice can comfortably cover the out‑of‑pocket amount if a claim arises.