Sharp Increase in Counselor License Protection Claims Highlights Rising Professional Risks

License protection adverse incidents and claims against counselors to the Board of Professional Counselors has nearly doubled in the last five years.

A new report from the Healthcare Providers Service Organization, a division of Aon Affinity, shows there were 4,080 reported license protection adverse incidents and claims made against counselors in 2024, up from 2,082 in 2019.

The average total incurred for professional liability claims rose nearly 40%, from $113,642 to $157,492, according to the report.

Top exposures include professional liability claims, subpoena assistance matters and license protection matters. Subpoena assistance accounts for 66% of the distribution of claim counts.

The report also shows an increase in the number of claims that occurred when counselors were using virtual technology: 3.9% of the claims from 2024 involved counseling administered via telebehavioral health.

The claims involving telebehavioral health also have the potential for high severity loss exposures, with a greater potential that the lines of professionalism can be blurred and standards and regulations may be disregarded. The average total of incurred losses in 2024 for these claims reached $317,516, according to the report.

Other findings in the report include:

• The average total incurred for professional liability claims is $157,492.
• The average license protection matter cost is $5,524
• There was an increase of evaluation, assessment, and interpretation claims, which incurred an average total loss of $460,671.
• Sexual misconduct, failure to maintain professional standards and breach of confidentiality most frequently led to licensing board complaints.