Company insurance is intended to safeguard the financial assets of a business owner and is a vital investment for a counselling centre.
This article will discuss the primary insurance coverage for counselling centres, general liability insurance, as well as additional policies that are appropriate for this industry.
Counseling Centers Need General Liability Insurance
Every firm, regardless of sector, has risks that should be insured. General liability insurance is the most frequent and comprehensive form of coverage that company owners purchase.
General liability insurance covers the following risks:
Physical harm
Damage to property
Medical expenses
Legal defence and decision
Personal and commercial harm
While general liability insurance is not legally needed for companies, operating without it is exceedingly dangerous. If your company is sued, you might face costs in the hundreds of thousands of dollars (or more). The only way to avoid this sort of catastrophe from destroying your organisation is to have an adequate general liability insurance coverage in place to assist pay for these losses.
Common Situations That A Counseling Center’s General Liability Insurance May Cover
Example 1: You have taken out the old flooring but have not yet installed the new flooring. The customer attempts to access the property and trips due to uneven ground. They launch a lawsuit against your company. Your general liability coverage will cover the expense of your legal defence, including any payout if the matter is settled out of court.
Example 2: While transporting tiles from a truck to the property, one of your workers loses control of a dolly. The large tile crates slam into the client’s beautiful landscaping, destroying lighting systems and exotic plants. The general liability coverage you have will most likely cover the replacement and repair expenses for the client’s property damage.
Example 3: A rival argues that you are using a logo that is too similar to theirs and sues your company. If you are found accountable, your general liability coverage will cover the expenses of your legal defence as well as the costs of compensating the rival up to the policy limits.
Of course, this is not an entire list of risks covered by a general liability insurance policy, and certain situations may result in a specific peril not being covered. To minimise coverage gaps, it’s always better to speak with your agent about the terms of your policy.
General Liability Insurance Cost
The typical American counselling centre pays between $450 and $1,500 per year for $1 million in general liability insurance.
The cost of your coverage will be determined by a number of variables. Among them are your:
Location
Deductible
Employees’ number
Per-occurrence restriction
The overall aggregate limit
You may be able to get general liability insurance at a lower cost if you buy it as part of a business owner’s policy (BOP) rather than as a separate policy. A business interruption policy (BOP) is a more complete option that covers numerous types of coverage, such as business interruption and property insurance.
Other Kinds of Coverage Counseling Centers Are Required
While general liability insurance is the most crucial, there are various different types of coverage to be aware of. Other forms of insurance that all counselling clinics should have are as follows:
Compensation for Workers
Workers’ compensation is a legal requirement for each company that employs people. Specific legal requirements differ by state, but if you have employees, you are almost certainly needed by law to have workers’ compensation insurance. Your workers’ compensation insurance will cover the expenses of treating employees who are injured on the job. It may also assist in covering the employee’s missed pay.
Insurance for Professional Liability
One of your counselling team’s primary tasks is to give advise for patients, which might place your centre in a tough position if someone brings a lawsuit blaming your organisation for the behaviour of patients. Professional liability insurance may cover the expenses of legal counsel and settlements, allowing your centre to continue serving the community even if you are sued.
Coverage Options for Some Counseling Centers
In addition to the policies listed above, your counselling centre may need other forms of coverage based on particular elements of your activities. Some of them may not apply to you, so be sure to ask your agent whether policies are appropriate for your company.
Umbrella Insurance for Businesses
A well-designed general liability insurance policy for your counselling centre should cover most circumstances, but there is always the potential that the damage may be costly enough to surpass your coverage limits. Commercial umbrella insurance is intended to fill the gap left by general liability insurance. When the limitations of your general liability insurance are reached, business umbrella coverage kicks in to save you money.
Additional Security Measures for Your Company
Although investing in company insurance is simple (and necessary), it should not be your first line of defence. Yes, insurance will reimburse your company for cash losses incurred as a result of an occurrence, but it is much preferable to avoid losses altogether.
With this in mind, here are a few steps you can take to better secure your company:
Make use of legally binding contracts and other business agreements. (We provide free templates for several of the most often used legal forms.)
To safeguard your personal assets, form a limited liability company (LLC) or a corporation. (To discover how to incorporate an LLC or company in your state, see our step-by-step tutorials.)
Keep your company licences up to date.
Streamline the internal procedures of your company. This will eliminate unneeded variables from routine activities and establish a secure, consistent environment in which to do business.
If your company is an LLC, you should check into LLC insurance.