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Insurance for Occupational Therapists

Insurance for occupational therapists 

At Homewood Insurance, we provide tailored liability coverage for OTs in clinics, hospitals, schools, skilled nursing facilities, and home health settings. This page outlines what your policy should include, how much it typically costs, and which practices may increase premiums.

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The fastest way to find insurance for your occupational therapy practice is to complete our quick quote form. Homewood will compare multiple carriers and provide a tailored proposal that protects your career, your patients, and your practice.

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Insurance for Occupational Therapists can include:

  • Professional Liability insurance (malpractice insurance) protects against treatment-related injuries, errors in judgment, and failure to supervise patients.
  • General Liability insurance covers third-party claims such as slips and falls in offices, property damage during home visits, or advertising injury.
  • Coverage applies to rehab clinics, hospitals, skilled nursing facilities, schools, outpatient centers, and home health.
  • Includes liability for ADL training, cognitive therapy, sensory integration, adaptive equipment, and assistive device use.
  • Standard limits are typically $1M per claim / $3M aggregate, with options for tail coverage, retroactive protection, and multi-location flexibility.

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Insurance for Cancer Treatment Centers can include:

Malpractice or liability insurance can provide essential protection against these risks:

  1. Professional Liability (Malpractice)

    1. Protection for treatment-related injuries, such as falls, sprains, or exacerbated conditions during therapy.
    2. Coverage for errors in functional assessments, unsafe home modification recommendations, or improper activity plans.
    3. Defense for claims tied to cognitive rehab services, memory and problem-solving therapy, or sensory integration programs.
    4. Includes liability for assistive technology, splinting, and ADL support like grooming, cooking, or mobility training.
    5. Optional endorsements for workplace ergonomics, handwriting programs, pediatric sensory therapies, and telehealth.

  2. General Liability

    1. Third-party bodily injury coverage (e.g., a visitor slips in your clinic, or a patient falls during a session).
    2. Protection against property damage during therapy, including equipment-related incidents in homes or schools.
    3. Personal and advertising injury coverage for claims like defamation or privacy violations.
    4. Applies to independent contractors, clinic-based therapists, and facility-employed OTs.
    5. Standard limits $1M / $3M aggregate, with umbrella options available.

Homewood Insurance Group work with  different insurance carriers to find you the most suitable coverage at the best price.

Get a quick quote now.

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Cost of Coverage:

Premiums are influenced by specialty mix, litigation environment, facility size, and claims history. Carriers also evaluate risk management protocols such as credentialing, peer review, and informed consent.

Professional Liability (PL / Malpractice) – Estimated Ranges

  • Individual OTs in private practice or contracting: $350–$600 annually.
  • Small outpatient or therapy group practices: $750–$1,500 annually.
  • OTs working in higher-risk settings (home health, SNFs, pediatrics): $2,000+ annually.

Premiums depend on patient population, services provided, state litigation climate, and prior claims.

General Liability (GL) – Estimated Ranges:

  • Small individual or mobile practices: $300–$800 annually.
  • Mid-sized outpatient clinics or therapy centers: $1,000–$2,500 annually.
  • Larger practices with multiple staff or facilities: $3,000–$6,000+ annually.

Factors include facility condition, number of patient visits, off-site services, and incident history.

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High-Risk Procedures and their Impact on your Premiums

Most OT services are insurable, but some increase liability exposure. Carriers raise premiums (often 20–50%) or add exclusions if risk management is weak. Outright denials are rare but may occur with activities outside scope, fraud, or misconduct.

➡ See the table below for examples of higher-risk practices that influence premiums.

Procedure/Practice Why It’s Higher Risk Potential Premium Impact Risk Mitigation Tips
Physical Agent Modalities (PAMs) Burns, reinjury, or equipment malfunction; requires certification in some states. 15–30% increase if heavily used or undocumented. Maintain certification, follow evidence-based protocols, inspect equipment regularly.
Mobility & Transfer Training Falls during sessions, especially in elderly or post-surgical patients. 20–40% hike in SNF/home health settings; claims can double rates. Perform fall assessments, use assistive devices properly, document interventions.
Assistive Device Fitting & Training Poor fitting or misuse can cause falls, sores, or injuries. 10–25% increase for pediatrics or complex rehab cases. Verify patient understanding, use teach-back methods, document equipment use.
Supervisory/Delegation Tasks Improper delegation to assistants can result in substandard care claims. 15–25% surcharge in group practices; denial possible if unlicensed delegation occurs. Follow AOTA supervision standards; maintain oversight documentation.

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Other types of Insurance Occupational Therapists may need

 
General Liability Insurance

General Liability Insurance

General Liability covers medical expenses and attorney fees which result from bodily injuries and property damage that your facility or organization could be legally responsible for.
 
 
Business owner's policy (BOP insurance)

Business owner's policy (BOP) insurance

A Business Owner’s Policy (BOP) is a comprehensive insurance package designed for occupational therapists with small to medium-sized businesses. It provides a blend of liability protection and property insurance.
 
 
Professional Liability Insurance

Professional Liability Insurance

Professional Liability Insurance overs any negligence or mistakes made by the individual occupational therapists during their practice. It differs from General Liability insurance, which covers the practice itself. 
 
 
Commercial Auto Insurance

Commercial Auto Insurance

This is relevant for occupational therapists who use a vehicle for practice-related tasks. This insurance covers you against auto accidents, theft, and other vehicle-related incidents.
 
 
workers compensation insurance

Workers Compensation Insurance

Workers Compensation Insurance is usually mandated by law. It protects occupational therapy practices and employees in case of work-related injuries or illnesses.
 
 
Cyber Liability Insurance

Cyber Liability Insurance

Covers you against financial losses associated with data breaches, cyber attacks, and other cyber incidents. Insurers will usually conduct rigorous testing of your online system to fix vulnerabilities as part of this policy.
 

Why Work With Homewood

Homewood Insurance specializes in healthcare liability coverage, helping Occupational Therapists:

  • Secure malpractice and liability coverage that fits your practice setting.
  • Avoid gaps by ensuring coverage extends to assistive equipment, pediatric care, telehealth, and home visits.
  • Compare policies from multiple carriers to find the best rates and strongest protections.
  • Add endorsements like tail coverage, prior acts coverage, and abuse/molestation protection when needed.

Call: 608-395-7545 or
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Chris Worley

Chris specializes in sourcing the most suitable insurance for Occupational Therapists at the best price. You can call him or fill out the form and he will get your message directly.