Applied Behavior Analysis (ABA) therapy is widely recognized as one of the most effective treatments for individuals with autism spectrum disorder (ASD).
According to the Cleveland Clinic, current research suggests that 1 in every 31 children in the U.S. has ASD, though this number is likely an undercount. ASD is a neurodevelopmental disorder present from birth. It affects how individuals learn, communicate, and interact compared with neurotypical peers.
While much attention is given to patient coverage, there is often confusion surrounding ABA insurance coverage for providers themselves. Many therapists and clinics face misunderstandings about what their policies cover, from liability protections to reimbursement risks.
Understanding these nuances is essential for ABA providers to safeguard their practices, ensure compliance, and maintain uninterrupted services for their clients.
This article explores common misconceptions and clarifies key aspects of provider-focused ABA insurance coverage.
1. General Liability Insurance Is Sufficient Coverage
Many ABA practice owners mistakenly assume that general liability insurance alone sufficiently protects their operations, but this is a risky oversimplification.
According to Investopedia, commercial general liability (CGL) insurance covers a business for bodily injury, personal injury, and property damage related to its operations, products, or premises. While this addresses third-party incidents, such as a client slipping in your office, it does not cover professional services claims.
ABA providers face the majority of risks in treatment delivery, including allegations of harm from intervention recommendations, improper implementation, or inadequate staff supervision. General liability excludes these claims.
Professional liability insurance, or errors and omissions coverage, specifically protects against mistakes, negligence, or claims arising from professional services. ABA practices need both policies to cover distinct risks. Relying solely on general liability exposes providers to potentially six- or seven-figure legal and settlement costs.
2. Professional Liability Covers All Staff Activities
ABA practice owners often assume their professional liability insurance covers all staff activities, but coverage varies widely by policy, creating potential gaps. Many policies protect only licensed professionals like BCBAs and BCaBAs, often excluding Registered Behavior Technicians (RBTs) unless under specific supervision.
Furthermore, administrative staff and billing personnel generally require separate employment practices liability insurance. Services outside defined practice scopes, such as counseling or making medical diagnoses, may also not be covered.
Crucially, coverage for telehealth services requires specific policy endorsements, which many older policies lack. Additionally, supervision failures, such as supervisees acting beyond established protocols, can limit protection.
The reality is complex. According to Olson Duncan, ABA providers face multiple exposures in their work. This risk is especially pronounced when delivering in-home services, which create a less controlled environment prone to insurance claims.
Insurance for ABA therapists offers cost-effective coverage options alongside free risk management services to help providers address these risks. Therefore, careful policy review of covered persons, services, and locations is essential to avoid dangerous gaps in protection.
3. Employment Practices Liability Is Unnecessary
Many ABA practice owners mistakenly forgo Employment Practices Liability Insurance (EPLI), believing positive staff relationships negate the need. This ignores escalating industry risks.
Carrier Management notes that 69% of legal and HR professionals surveyed reported their organization experienced claims such as discrimination or harassment in the past 12 months. Additionally, 42% of respondents expect the frequency of these claims to increase in the coming year.
EPLI covers these pervasive claims, including wrongful termination, retaliation, and wage disputes, which can bankrupt a practice even if allegations are unfounded. For ABA, the risk is compounded by staff frequently working in isolated in-home settings. This increases vulnerability to harassment claims, either between staff members or involving clients and their families.
Given rapid growth and high turnover, EPLI is essential to cover attorney fees and settlements arising from employment disputes, making it a non-negotiable expense.
4. Workers’ Compensation Handles All Employee Injuries
While workers’ compensation (WC) covers medical costs and lost wages for injured employees, ABA owners often misunderstand its limits. WC typically excludes injuries sustained by independent contractors and may dispute coverage for psychological injuries not tied to physical trauma.
Furthermore, workers’ compensation doesn’t cover employer liability claims, such as lawsuits alleging the employer failed to maintain a safe environment. Adequate coverage for these claims requires limits beyond the statutory workers’ compensation minimums.
Risk & Insurance highlights further systemic struggles. Claimants face an average five-week wait for initial WC payments, and only 31% report benefits fully covering basic living expenses.
Given these delays and the unique risks of traveling staff, ABA practices need more than basic WC. They must confirm coverage for all personnel and potentially increase the employer’s liability limits to protect against costly lawsuits arising from alleged negligence.
5. Cyber Insurance Is Only for Large Organizations
ABA practice owners often wrongly assume cyber attacks target only large entities. Yet, their access to extensive Protected Health Information (PHI) makes even small practices high-value targets subject to severe HIPAA penalties.
PwC’s 2025 survey found that 54% of healthcare respondents rank cyber risk as the highest risk requiring mitigation. This highlights the widespread vulnerability, requiring not just mitigation but enterprise-level cyber resilience.
Cyber insurance is critical. It covers costs like forensic investigations, mandatory client notifications, regulatory fines, and legal defense following a breach or ransomware attack. Since general and professional liability policies exclude these risks, dedicated cyber coverage is the only defense. It also provides access to specialized response teams.
Regardless of practice size, investing in cyber insurance is essential to quickly mitigate digital crises, navigate complex regulations, and safeguard sensitive client data.
Frequently Asked Questions
Do general liability policies cover professional mistakes in ABA therapy?
No. General liability insurance typically covers third-party bodily injury or property damage, but it does not cover claims related to professional services. ABA providers need professional liability insurance to protect against allegations of treatment errors, negligence, or supervision failures.
Are ABA staff automatically covered under professional liability insurance?
No, ABA staff are not automatically covered under professional liability insurance. Coverage depends on the policy terms and whether the staff member is listed or employed by the insured organization. Individual practitioners may need separate coverage if not included under the organization’s policy. Always verify with the insurer.
Does my malpractice insurance cover services provided by RBTs I supervise?
This varies significantly by policy. Some professional liability policies cover RBTs only when directly supervised, others extend coverage to all employees, and some exclude paraprofessionals entirely. Review your policy’s “covered persons” definition carefully and discuss RBT coverage explicitly with your insurance broker to avoid dangerous gaps.
ABA insurance coverage is more complex than many practice owners realize. Relying solely on general liability leaves critical gaps in professional, cyber, and employment protections. Understanding and securing the right combination of policies ensures comprehensive coverage, safeguarding both the practice and the clients it serves.