Mental health professionals' liability costs on the rise

The average payout for liability claims against mental health professionals has increased nearly 40% since 2019, according to a report from insurer CNA and the Healthcare Providers Service Organization. 

In 2024, CNA, a property and casualty insurer, paid $157,492 on average for professional liability claims made against mental health counselors, up from $113,642 in 2019. 

Telehealth practice settings accounted for 3.9% of closed claims CNA paid between 2018 and 2023. There were no claims made in a telehealth setting in 2013 to 2017. 

Sexual and romantic relationships were the most common complaint filed against counselors, accounting for 38.2% of claims paid. Ethical responsibilities accounted for 10.9% of complaints. 

Complaints alleging mental health providers failed to properly diagnose conditions were the most expensive, costing $456,536 in indemnity on average. 

Read the full report here. 

Copyright © 2025 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.

 

Top 40 articles from the past 6 months

Featured Whitepapers

Featured Webinars