General Liability Insurance Workers Compensation Insurance Umbrella or Excess Liability Insurance
Understanding the Need for Art Therapy Business Insurance
Art therapy is a specialized discipline that involves helping individuals who suffer from psychological disorders to improve their well-being through art. An art therapist utilizes people's creativity for self-expression, boosting self-esteem, coping with anxiety, and working on social skills. Professionals use coloring, sketching, drawing, painting, and sculpting techniques to help people overcome their mental trauma.
Art therapists work in various settings, such as hospitals, mental health agencies, elder care facilities, schools, colleges, and domestic violence and homeless shelters. They may also provide private sessions with individuals. According to recruiter.com, with stress increasing daily, the demand for art therapists in the United States is reportedly expected to rise by 27.58% by 2029.
Art therapy is a noble profession that also involves interacting with clients and possibly their families regularly. So, there could be risks and liability exposures to the practitioner. Having the right art therapist insurance as financial protection for your practice is vital. Business insurance for art therapists protects against accidents and lawsuits, keeping your bottom line unaffected.
Risks and Liabilities Associated with Art Therapy Business
Art therapy business owners can be liable for claims including:
Negligent Supervision: Creative art therapists are highly vulnerable to claims related to negligence.
For instance, a client battling depression could claim that the creative art therapist failed to prevent a relapse. The client can also sue the therapist for neglect of duty, and legal action can further jeopardize the business's assets and future earnings.
Breach of Confidentiality: A creative art therapist might mistakenly breach the confidentiality of the patient's records while discussing the case with another staff member.
The client can sue the art therapist for therapeutic or medical malpractice in such a case. It can damage the art therapist's established practice, and if found to be liable, they would also need to pay a hefty amount to settle the case and pay the defense attorney.
Failure to Maintain a Standard of Care: A client can accuse the art therapist of being careless toward them, such as answering phones during the session or showing up late to the appointment.
Insurance options for Art Therapists
Professional Liability Insurance:
A negligent act or oversight with a client's therapy resulting in harm to the patient or someone else could get the art therapist and practice sued. Professional liability insurance, also called errors and omissions insurance, will provide a legal defense in such situations so art therapists and practices can continue their work without worrying about legal expenses and damages owed. This policy pays for Professional Liability claims and suits alleging improper advice, negligence, omitting protocols, and other wrongful acts. It provides legal defense and pays the settlement or awarded judgment as well as court costs due to covered wrongful acts.
Business Owner’s Policy:
A Business Owner's Policy (BOP) is a cost-effective policy and bundles both general liability insurance and property insurance.
Commercial Property:
The commercial property component of a BOP pays for the repair or replacement of assets caused by a covered peril such as fire, lightning, windstorm, hail, riot, or vandalism, to name a few.
A Business Owner's Policy also covers owned buildings, furniture, electronics (including laptops and computers), and specialized medical equipment. This policy can also include Business Interruption (BI) coverage. Direct physical damage to the building by a covered peril that prevents normal business operations can trigger this coverage. Think of a fire that destroys the building; BI can reimburse for lost revenue resulting from the business closing because of the fire.
General Liability Insurance (GL):
This insurance provides coverage against basic risks such as third-party bodily injury and property damage liability claims. There can be a slip and fall accident at the office where someone hurts themselves. If the victim blames the business owner for the injury they can sue the therapist or business for negligence. If the client sues, without this insurance, the therapist or business would have to pay for their own defense and awarded judgment.
General Liability Insurance comes in handy in these times because it pays for the injured party's damages resulting from medical bills, economic loss, non-economic loss, attorney’s fees, and court-ordered judgments. While attending to clients, an art therapist might have to handle their property. If an item is damaged accidentally, their practice could be held accountable. A GL policy can pay for repairing or replacing a damaged item. GL has limited coverage for personal and advertising injury liability, where the business owner unintentionally copies a competitor's logo or slogan leading to a lawsuit. This coverage responds to accusations of invasion of privacy, false arrest, wrongful eviction, defamation, libel, slander, and copyright infringement. If the art therapy business owner uses social media and other promotional materials for marketing, they should opt for this coverage.
Workers’ Compensation Insurance:
Businesses that have employees require Workers' Compensation Insurance to cover the cost of medical care when an employee gets injured at work. Accidents can happen at any point in time. Employees could fall on the stairs or trip over an electrical cord, hurting themselves. This policy also covers a percentage of lost wages when an injury prevents the employee from returning to work. The Employers' Liability included in the work comp policy provides defense for the employer when an employee sues the business for negligence in causing their injury. Employer’s Liability would also pay for necessary expenses, court costs, and settlements.
Cost of Business Insurance for Creative Art Therapists
Several factors are responsible for the cost of Business Insurance for art therapists, including:
- Experience of licensed staff
- Location of operation
- Income generated by the business
- Types of therapy and counseling sessions offered
- Equipment and business property insured
- Coverage type and limits purchased
Final Thoughts
Unfortunate incidents and accidents can happen in the Art Therapy Business. Business Insurance for Art Therapists provides a financial safeguard against hefty claims. Analyze your insurance needs based on your business with a licensed agent who will offer insight into the proper coverage. One should carefully read the terms and conditions of the policy before buying and check the exclusions too.
To get a quote for your business insurance, please visit us at www.insuranceadvisor.com.