California Law and Ethics Practice Exam – Prep Guide and Practice Questions

Obtaining professional liability insurance is essential because it provides protection for therapists against claims of malpractice and other legal liabilities that may arise during their practice. This type of insurance covers the costs associated with legal defense, settlements, or judgments that may be incurred if a client alleges that the therapist acted negligently or did not meet the standard of care. Given the inherent risks in therapeutic practices, having this insurance safeguards a therapist's financial stability and professional reputation, allowing them to focus more on providing care rather than worrying about potential legal issues.

While other aspects, such as marketability or client trust, can be influenced by having liability insurance, the primary and most critical function of this insurance is to defend against legal claims. The insurance is not typically required for certification renewal, though some professional bodies may encourage it as part of best practices for protection in the field.