Occupational Therapists Insurance

Business insurance helps you keep your business running by covering legal expenses, professional mistakes, and client disputes.

Why Do Occupational Therapists Need Insurance?

Occupational therapists, whether working for an employer or self-employed, need to protect themselves against potential patient injuries, property damage, negligence and malpractice claims, and comply with state requirements.

Some states require occupational therapists working as contractors or in private practice to carry things like professional liability insurance and insurance providers might require it before they sign a contract with your facility to approve becoming in-network providers.

If a patient slips and falls on a wet floor, it’s essential to have the right protection. General liability insurance can provide protection for an occupational therapy business against claims of property damage, bodily injury, or even lawsuits.

Similarly, if you have part-time or full-time employees and they slip and fall, workers compensation insurance can be essential. It is also important to protect property and equipment against natural disasters, theft, or vandalism.

Having the right insurance keeps you compliant with HIPAA requirements for data protection for your patients, mitigates financial risks against lawsuits, and demonstrates that you are committed to the safety of your patients.

It also adds credibility—many customers and clients require proof of insurance before going to an occupational therapist. If you have a business with several professionals under your employ, having the right insurance helps you operate confidently, knowing you’re covered if something goes wrong.

What Insurance Do Occupational Therapist Businesses Need?

Occupational therapists need protection against common risks like accidents, injuries or damage associated with patients and staff alike. To protect yourself and your business, here’s a breakdown of the most important business insurance policies to consider.

General Liability Insurance

General liability insurance is the foundational insurance policy for most small businesses. It protects you from third-party claims of bodily injury, property damage, and personal injury. If a client slips and falls at your treatment center, general liability pays for legal fees, repairs, or medical bills.

Example: During a visit, a client slips and falls outside a leaking water dispenser and is injured. General liability insurance can cover the cost of any issues and any legal fees if a lawsuit follows.

Workers’ Compensation Insurance

Workers’ compensation insurance covers your employees if they get injured or become ill as a result of their job. It covers medical bills, lost wages, rehabilitation, and even death benefits. It’s also required by law in most states if you have employees.

Example: One of your employees is injured while working at your facility. Workers’ comp pays for their ER visit and covers time off while they recover.

Workers’ compensation insurance is required for occupational therapist businesses with employees in almost every state.

Professional Liability Insurance (Errors and Omissions Insurance)

Professional liability insurance is protection against errors or negligence, also known as medical malpractice insurance. If a client is injured because of a mistake or negligence from yourself or your staff, this can cover damages from lawsuits. Some states and employers require professional liability insurance for practicing occupational therapists.

Example: A client sues you after claiming that some of your exercises worsened their back condition and now they can’t walk. This would cover legal defense costs, settlements, and judgments related to the lawsuit.

Commercial Auto Insurance

If you or your employees drive for business purposes, personal auto insurance likely won’t cover accidents. Commercial auto fills that gap. It covers vehicle damage, injuries, and liability if you’re involved in an accident while driving for work.

Example: One of your employees rear-ends a car while driving to your facility in a company van. Commercial auto covers the damages and medical costs.

Business Owner’s Policy (BOP)

A BOP bundles general liability and commercial property insurance into one policy, often at a lower cost than buying them separately. It covers property damage to your business location or equipment, along with liability protection.

Example: A fire in your office damages equipment and business records. A BOP helps you recover both the physical and financial losses.

Commercial Property Insurance

If you own or lease space for your occupational therapy business, this policy covers the physical building and the contents inside. It covers fire, vandalism, theft, weather damage, and more—anything that could physically impact your business premises or equipment stored there.

Example: A storm causes water damage to your office, ruining thousands of dollars’ worth of supplies. Commercial property insurance helps you recover.

Business Personal Property (BPP) Insurance

BPP is a type of property insurance specifically for movable items like tables, exercise equipment, computers, and office furniture used in your business. This will cover the repair or replacement of these items if they are damaged or destroyed due to fire, theft, or other covered events.

Example: A fire in your office destroys exercise equipment and tables. BPP helps cover the cost to replace those essential business items.

Hired And Non-Owned Auto (HNOA) Insurance

This policy covers liability if you or your employees use personal or rented vehicles for business purposes. If an employee causes an accident while using their personal car for a work errand, HNOA provides liability coverage where personal auto insurance might fall short.

Example: You send an employee to pick up supplies for your office in their own car, and they cause a fender bender. HNOA helps with the liability claim.

Umbrella Insurance

Umbrella coverage provides extra protection beyond the limits of your existing policies, like general liability and commercial auto. Once a claim exceeds the limits of your underlying policy, umbrella insurance kicks in to cover the remaining amount.

Example: You’re sued for $1 million after a patient is injured. Your general liability policy caps at $500,000. Umbrella insurance can cover the remaining $500,000.

Cyber Liability Insurance

Cyber insurance covers losses related to cyberattacks, data breaches, and other digital risks, particularly important if you store client info online. It covers legal costs, notification expenses, and credit monitoring for affected clients. Typically essential to comply with data breach laws including HIPAA.

Example: Your bookkeeping software is hacked, and client addresses and payment details are leaked. Cyber liability helps manage the fallout.

Together, these policies form a comprehensive insurance plan for all occupational therapy businesses. While not every business needs all of them, understanding your risks and matching them with the right coverage ensures your operation stays protected, whether you’re a solo contractor or manage a growing team.

Business Insurance Requirements For Occupational Therapists

Occupational therapist businesses are generally not mandated by federal law to carry specific insurance policies. However, certain types of insurance may be required depending on state laws, local regulations, and the nature of your business operations.

Workers’ Compensation Insurance

In most states, if you have employees, you’re required to carry workers’ compensation insurance to cover medical expenses and lost wages for work-related injuries or illnesses. However, Texas does not mandate this coverage for private employers, though it’s still highly recommended to protect both your employees and your business.

Commercial Auto Insurance

If your business owns vehicles used for work purposes, most states require commercial auto insurance to cover liabilities arising from accidents. In Texas, commercial auto insurance is mandatory for business-owned vehicles.

General Liability Insurance

While not legally required, general liability insurance is often necessary to secure clients or become in-network with local insurance providers and is highly recommended to protect against claims of property damage or bodily injury. Some clients may require proof of this coverage before doing business with you.

It’s important to check with your local city or county government to understand specific licensing and insurance requirements applicable to your area.

How Much Does Business Insurance Cost For Occupational Therapists?

Business insurance for an occupational therapist typically costs around an average of $62 per month depending on many factors, including where your business is located and your claims history.

The biggest factor is your service offering, your location, the number of employees you have, the services you offer, and the risk profile you have based on your business revenue.

When calculating your business insurance cost, insurers also consider the amount of coverage you choose and whether you package policies together. While it may be tempting to go with the cheapest option, it’s important to choose a plan that truly protects your business from its most likely risks.

How Is Your Occupational Therapist Insurance Cost Calculated?

Insurance underwriters calculate your occupational therapist business insurance premium based on several key risk factors unique to your business.

Insurance underwriters will first look at the type of therapy services you offer like programs for specific age groups or specific health conditions all of which can influence the cost of your premiums. If you provide wellness services like telehealth, this can also influence your costs.

Insurance providers will take a look at your location as well; locations that have higher levels of malpractice claims will typically cost more in insurance premiums.

The office space you have as well as any equipment you use for your occupational therapy can directly influence costs too.

Underwriters also look at your claims history—if you’ve filed previous insurance claims, you could be seen as a higher risk. Whether you own or lease business vehicles, and the type and amount of coverage you choose all factor into the cost as well. Even your business structure (LLC vs. sole proprietor) can affect how your policy is priced.

Tips To Lower Your Occupational Therapist Insurance Costs

Insurance costs can add up quickly for occupational therapists, but there are practical ways to keep your premiums manageable without skimping on coverage. The key is to understand which factors you can control and take proactive steps to minimize risk.

• Reduce Liabilities. One of the key ways that you can lower your potential costs is to proactively reduce your risk of liabilities, using policies and procedures that minimize those risks. Part of this can be clear reporting procedures for any incidents and things like effective medication administration or fall prevention strategies for your patients.
• Bundle your policies. Combine general liability, property insurance, and other coverages into a Business Owner’s Policy (BOP) to qualify for a multi-policy discount.
• Consider Hired and Non-Owned Auto (HNOA) coverage. If you or your employees use personal vehicles for work, HNOA can be more cost-effective than a full commercial auto policy.
• Keep a clean claims history. Avoiding claims through proper training and safety procedures can lower your risk profile and lead to reduced premiums over time.
• Invest in workplace safety. Implementing safety protocols and training for employees helps reduce the chances of injury claims and can lower workers’ compensation costs.
• Raise your deductible. Opting for a higher deductible can lower your monthly premium, but be sure your business can absorb the extra out-of-pocket cost in case of a claim.
• Review your coverage annually. Adjust your policies as your business evolves to avoid paying for coverage you no longer need.
• Compare quotes from multiple insurers. Rates vary widely, so shopping through Insuranceopedia can help you find the best deal for your current needs.

Taking a strategic approach to your insurance planning can make a real difference in your bottom line. With a little research and regular review, you can stay protected and cost-efficient at the same time.

Following these steps helps ensure you’re properly insured and set up to handle risks confidently and professionally.