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.