Malpractice Insurance for New Private Practice Therapists
By the Open My Practice team · Updated November 8, 2026 · 4 min read
Professional liability insurance, often called malpractice insurance, protects you if a client claims your services caused them harm. In private practice it's one of the first things to put in place, before you see your first client.
Why you need your own policy
- An employer's or agency's policy generally covers your work there, not your own practice.
- Your PLLC doesn't protect you from liability for your own clinical work.
- Insurance panels and many referral partners require proof of coverage.
Choices you'll make
- Claims-made vs. occurrence: a claims-made policy covers claims made while the policy is active, so you may need "tail" coverage when you cancel. An occurrence policy covers incidents that happened during the policy period, whenever the claim is filed.
- Limits: how much the policy pays per claim and in total each year.
- License defense: coverage for legal costs if a client files a complaint with your licensing board. Board complaints are more common than lawsuits.
- Business coverage: general liability for an office, and cyber coverage for data breaches.
How we handle this for you
- Gets you quotes matched to your license type and practice model
- Tracks your policy renewal date alongside your other deadlines
- Keeps proof of coverage ready for insurance panels and partners
Frequently asked questions
Do I need malpractice insurance if I'm already covered at my job?
Usually yes. Employer policies generally cover your work for that employer, not services you provide through your own practice.
What's the difference between claims-made and occurrence coverage?
Claims-made covers claims filed while the policy is active, so you may need tail coverage after it ends. Occurrence covers incidents that happened during the policy period, no matter when the claim is filed.
This guide is general information, not legal, tax, or financial advice. Rules change, so confirm requirements with the relevant agency or a qualified professional before acting.