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 become 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 face distinct challenges every day. You manage patient care, handle sensitive data, and maintain physical equipment. To keep your practice safe, you need to shield your business from financial loss caused by accidents, lawsuits, or property damage.

Here is a guide to the essential types of business insurance policies for occupational therapists.

Professional Liability Insurance

Professional liability insurance is arguably the most critical coverage for healthcare providers. It is often called medical malpractice insurance or errors and omissions coverage. It protects you if a client claims your professional services caused them harm. Even if you did nothing wrong, a client might sue if they feel a treatment plan failed or caused a new injury.

Example: A patient claims that a specific hand exercise you assigned caused nerve damage. They sue for medical costs and distress. This policy pays for your legal defense and any settlements.

General Liability Insurance

This serves as the foundation for most business protection plans. It covers accidents involving third parties, such as patients, delivery drivers, or visitors. It focuses on bodily injury and property damage that happens on your premises but is not related to professional treatment.

Example: A parent waiting for their child in your lobby trips over a loose rug and breaks a wrist. General liability insurance pays for their medical bills and your legal fees if they sue.

Workers’ Compensation Insurance

If you hire assistants, receptionists, or other therapists, you likely need this coverage. State laws almost always mandate it for businesses with employees. It pays for medical care and lost wages if a staff member gets hurt or sick because of their job.

Example: An occupational therapy assistant injures their back while helping a patient transfer from a wheelchair to a table. Workers’ compensation covers their rehabilitation costs and a portion of their income while they recover.

Business Owner’s Policy (BOP)

A BOP is a convenient package that bundles two major policies together. It usually combines general liability and commercial property insurance. Insurers often offer this at a rate lower than buying the policies individually. It is a great way to secure broad protection for your clinic.

Example: A water pipe bursts over the weekend and ruins your drywall and flooring. The BOP covers the repairs to the building and protects you against liability claims during the renovation.

Commercial Property Insurance

This policy protects the physical assets of your business. It covers the building itself if you own it. It also protects against common perils like fire, theft, windstorms, and vandalism. This ensures you have the funds to rebuild or repair your workspace after a disaster.

Example: A severe lightning storm starts a fire that damages the roof of your clinic. Commercial property insurance pays for the structural repairs needed to get you back in business.

Business Personal Property (BPP) Insurance

While property insurance covers the building, BPP covers what is inside it. This includes your therapy equipment, sensory tools, office furniture, and computers. It pays to repair or replace movable items if they are stolen or destroyed by a covered event.

Example: Burglars break into your office and steal laptops and expensive fine motor skill testing kits. BPP covers the replacement cost of these items.

Cyber Liability Insurance

Occupational therapists store sensitive patient records and personal information. This makes you a target for digital crimes. Cyber liability insurance helps you recover from data breaches and cyberattacks. It covers legal fines, notification costs, and credit monitoring for affected patients.

Example: A hacker installs ransomware on your office network and locks you out of your patient files. This policy covers the cost of the ransom, data recovery, and notifying your patients of the breach.

Commercial Auto Insurance

Personal car insurance policies rarely cover accidents that happen while you are working. If your business owns vehicles, like a van for transporting equipment to home visits, you need commercial auto coverage. It covers liability and damage if you or a staff member gets into a wreck.

Example: You are driving the company van to a client’s home and accidentally back into a parked car. Commercial auto insurance pays for the damage to the other vehicle.

Hired And Non-Owned Auto (HNOA) Insurance

This coverage is vital if you or your employees drive personal vehicles for work tasks. Standard commercial auto policies do not cover cars that the business does not own. HNOA fills this gap to protect the business from liability lawsuits.

Example: You send your office manager to buy supplies in their own sedan. On the way, they cause an accident. HNOA protects your business assets if the other driver sues your practice.

Umbrella Insurance

Sometimes a major lawsuit exceeds the limits of your primary insurance policies. Umbrella insurance provides an extra layer of financial safety. It kicks in once your general liability or auto policy limits are exhausted.

Example: A catastrophic accident at your clinic results in a lawsuit for $1.5 million. Your general liability policy only covers up to $1 million. Umbrella insurance pays the remaining $500,000.

These policies work together to create a safety net for your occupational therapy practice. Not every therapist needs every policy listed here. However, understanding these options helps you choose the right mix to keep your career and your business secure.

Cheapest Occupational Therapist General Liability Insurance

The cheapest option for General Liability insurance is offered by Hiscox, with policies starting at $345 per year.

Note: These estimates are based on a solo occupational therapist renting a small office space or operating from home. This policy does not include professional liability (malpractice) coverage.

Cheapest Occupational Therapist Business Owner’s Policy

The cheapest option for a Business Owner’s Policy (BOP) is The Hartford, with average annual premiums around $510.

Note: These estimates are based on a small occupational therapy practice with a physical location, low foot traffic, and minimal business equipment (e.g., under $15,000). A BOP bundles general liability and commercial property insurance.

Cheapest Occupational Therapist Professional Liability Insurance

For Professional Liability insurance, Proliability is the cheapest option, with average annual prices starting at $85.

Note: These estimates are based on starting quotes for a single, employed (W-2) occupational therapist with standard coverage limits (e.g., $1 million per occurrence / $3 million aggregate) and no prior claims.

How Much Does Business Insurance Cost For Occupational Therapists?

Business insurance for an occupational therapist typically costs around an average of $740 per year, 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.

Note: These estimates are based on small occupational therapy practices with standard coverage limits (e.g., $1 million per occurrence / $2 million aggregate) and low-risk profiles. Figures for Workers’ Compensation assume a small payroll. Actual premiums will vary significantly based on your specific location, number of employees, years in business, services offered, coverage limits selected, and claims history.

How Is Your Occupational Therapist Insurance Cost Calculated?

Insurance providers analyze various details to determine the premium for your occupational therapy practice. They assess specific factors to understand the risks involved in your daily work.

The primary factor is the type of therapy you provide. Working with pediatric patients carries different risks than geriatric care or specialized physical rehabilitation. Even the method of delivery matters, such as whether you see patients in a clinic or offer telehealth services.

Your physical location is another major component. You may pay a higher rate if your practice is in an area with a history of frequent medical malpractice lawsuits. Insurers also value your clinic space and the specialized therapeutic equipment you use to treat clients.

Underwriters also review your track record. If you have a history of prior insurance claims, you might be labeled as a higher risk. Finally, administrative details play a role. This includes your business structure, such as a sole proprietorship or LLC. The use of company vehicles and the specific coverage limits you choose will also adjust the final price.