Mental Health Liability Insurance

March 21, 2024

Healthcare and Social Assistance is a growing sector within the Healthcare industry In the US – below are the Market Size and Trends and Forecasts (2024-2029) 

According to a 2020 study supported by SAMSHA, there are approximately 1.2 million behavioral health providers in the United States, including all types of mental health professionals. These healthcare providers and other human services organizations need insurance partners dedicated to supporting their mission.

The Doctors Insurance Agency works with financially strong, committed, and creative insurance carriers who design niche products for Behavioral and Mental Health Liability Insurance. One Carrier that we partner with and represent is CapSpecialty Insurance. This firm offers tailored insurance products underwritten by experienced human services experts. Their custom mental health liability program (MHLI) includes a team of smart and responsive underwriters, a customized risk management approach, and experienced, in-house claims professionals.

Some behavioral health organizations extend their liability insurance to cover the administrative work of their chief medical officer. This specific type of coverage is known in the insurance industry as medical director liability. With insurance carriers like CapSpecialty, Admiral Royal Surplus, and many Lloyd's divisions, you can leverage your existing behavioral health organization liability policy to include medical director coverage. However, some organizations have additional requirements, that might contractually require their physicians to perform duties beyond administrative, or they might require a separate medical director liability policy even if coverage exists within the main policy.

The Doctors Insurance Agency specializes in finding these independent Medical Director Liability Insurance policies, which cover situations where the doctor provides direct patient care, such as methadone addiction therapy (MAT) or other psychiatric or pharmaceutical interventions. These policies also cover supervisory and collaborative physician services, in other words, the medical director's liability policy also extends coverage to supervising other doctors and advanced practice clinicians.

The increasing awareness of mental health and behavioral health challenges across the United States has led to the development of new treatments, drug interventions, therapies, and support centers. The Doctors Insurance Agency is proud to be part of the solution. We partner with a national brokerage network that operates in all states and provides us with access to insurance carriers specializing in this niche. Using this approach, the growing number of Mental Health Centers (MHCs) nationwide will receive the protection they need.

Furthermore, The Doctors Insurance Agency connects mental health clients (both providers and organizations) with specialized business consultants of The Medical Advantage Group (MAG).

The Medical Advantage Group (MAG) are expert in partnering with both startups and established entities. They boast over 25 years of experience supporting operational excellence and accelerating financial performance in the healthcare industry. MAG's hands-on approach leverages a team of over 200 healthcare experts to help medical practices achieve their goals. They accomplish this by:

  1. Unifying data sources: Streamlining data management for improved decision-making.
  2. Activating technology: Utilizing technology to optimize workflows and efficiency.
  3. Optimizing contracts and fee schedules: Ensuring practices receive fair compensation. 

Consulting Services for Behavioral Health Practices 

Medical Advantage Group (MAG)

We understand the challenges of managing a modern healthcare practice. The Medical Advantage Group (MAG) can help prioritize your energy and time by taking care of inefficient backend tasks, such as juggling EHR, telehealth platform, patient portal, and billing patients and staff. Our practice consultants specialize in streamlining your organizational operations and practice management. This allows you to focus on what matters most – providing excellent care for your current patients and making room for more in this in-demand specialty.

Both federal and state laws mandate insurance coverage for mental health and substance use disorders. In California, the Mental Health Parity Act, most recently amended in 2020, requires full coverage for these conditions and also establishes standards for medically necessary treatment and clinical guideline use.

The demand for mental health services is at an all-time high. This surge can be attributed in part to a growing national crisis – an epidemic of need for individual and group professional help. As a result, the mental healthcare field is experiencing significant growth. The Bureau of Labor Statistics projects substantial job growth for addiction counselors (24% increase between 2013 and 2025) and substance abuse and behavioral disorder counselors (18.4% increase between 2022 and 2032). This indicates a promising future for those seeking careers in mental health.

At The Doctors Insurance Agency, we understand the unique needs of mental health professionals. We partner with wholesale brokerage partners to ensure our provider clients and interested prospects can find the right Medical Professional Liability insurance policy.