The short answer
Usually, yes. Most contractor arrangements require you to carry your own professional liability insurance, and even when an organization has coverage, it may not protect you personally. Check whether your policy covers telehealth, every state where you see clients, and each setting you work in.
Do 1099 therapists need their own malpractice insurance?
In almost every case, yes. Employers often cover W-2 clinicians under the organization's policy. Contractors usually aren't covered and are expected to carry their own professional liability insurance, often at limits the contract specifies.
Even where an organization has its own policy, it protects the organization first. Your own policy protects you.
What's the difference between occurrence and claims-made?
| Occurrence | Claims-made | |
|---|---|---|
| Covers | Incidents during the policy period, whenever the claim is filed | Claims filed while the policy is active |
| After you cancel | Still covered for incidents during the policy | Not covered unless you buy tail coverage |
| Cost pattern | Often higher upfront | Often lower at first, rising over several years |
If you choose claims-made, plan for tail coverage when you retire or switch carriers.
What should you check in a policy?
- Telehealth coverage, stated clearly.
- Every state where your clients are located.
- Every setting: your practice and any contract roles.
- Limits that meet your contracts' requirements.
- Licensing board defense, which covers costs of responding to a board complaint. Many therapists find this as valuable as malpractice coverage itself.
- Who's named, if you have an LLC or PLLC.
- Risk-management support, such as an advice line for difficult situations.
What if you work several jobs?
One individual policy can often cover all of them, as long as it covers each setting and state. Tell your carrier about each arrangement. Don't assume an employer's policy covers your side work.
How ValorWell handles this
ValorWell doesn't provide malpractice coverage. Each clinician carries and manages their own policy, and your coverage is part of the information ValorWell uses in credentialing. Make sure your policy covers telehealth and every state where you'll see ValorWell clients.
Important limits
- This isn't insurance advice. Compare policies and ask carriers your specific questions.
- Coverage gaps are easy to miss. Changing carriers or states can create gaps; check dates carefully.
- Your contract may set minimum limits. Read it before buying a policy.