Malpractice Insurance for South Carolina Counselors and Therapists

I'm Vic Morgano, a licensed SC insurance agent at The Morgano Agency on Pine Knoll Dr in Greenville, and we place malpractice insurance for South Carolina counselors and therapists every week. In our Greenville office, a solo licensed counselor usually pays $400 to $1,200 per year for $1 million per occurrence and $3 million aggregate limits. That covers negligent treatment, boundary violations, breach of confidentiality, and license defense before the SC LLR Board of Examiners. Most Upstate clinicians we help are sole practitioners or small group practices around Augusta Road and downtown Greenville, and the worry that brings them in is rarely a lawsuit. It is a board complaint.

Reviewed by Vic Morgano, founder and licensed South Carolina insurance agent (SC insurance license #612823), The Morgano Agency Inc. Serving Greenville and the Upstate since 1998. Last updated June 10, 2026.

Does SC require counselors to have malpractice insurance?

South Carolina does not require licensed counselors or therapists to carry malpractice insurance by state law, but most employers, group practices, and insurance panels (BlueCross, Cigna, Medicare) require it as a condition of credentialing. In our Greenville office, the counselors who come to us are almost always told to get a policy before a panel or a landlord will sign off, so solo practitioners end up needing it regardless. The SC LLR Board of Examiners for Licensed Professional Counselors does not mandate coverage but recommends it for every active licensee.

How much does SC counselor malpractice insurance cost?

A typical South Carolina licensed counselor in solo or small group practice pays $400 to $1,200 per year for $1 million per occurrence and $3 million aggregate malpractice coverage. Group plans through professional associations often carry a lower per-member cost when bundled. Specialty work such as forensic, expert witness, or sex therapy runs 50 to 100 percent more because of higher claim severity, which is consistent with how carriers price professional liability by exposure. License defense coverage is typically included up to $25,000 to $50,000.

What does SC counselor malpractice insurance cover?

Malpractice insurance for SC counselors covers claims of negligent treatment such as a missed diagnosis or an improper treatment plan, boundary violations like dual relationships, breach of confidentiality, sexual misconduct allegations (usually with reduced limits), and license defense before the SC LLR Board of Examiners. Coverage includes defense costs, often $25,000 to $75,000 per claim, plus any settlement or judgment. Intentional acts, criminal conduct, and fraud are excluded. Carrier rating and policy terms follow standard filings reviewed by the NAIC.

Does SC malpractice insurance cover license complaints?

Yes, and this is the part Upstate clinicians underestimate. Most SC counselor malpractice policies include license defense coverage of $25,000 to $50,000 for proceedings before the SC LLR Board of Examiners, which sits at Synergy Business Park in Columbia. That pays the attorney fees for responding to a board complaint, defending your license, and any administrative hearing. In our experience placing these policies for Greenville County counselors, a board complaint is the most common thing we see, far more than a civil lawsuit, so we push every solo LPC toward the higher license-defense limit available by endorsement.

Is malpractice insurance the same as E&O for SC therapists?

For licensed counselors, therapists, social workers, psychologists, and other behavioral health professionals in South Carolina, malpractice insurance and Professional Liability or E&O insurance are essentially the same coverage. Some carriers use malpractice for healthcare professions and E&O for non-licensed consultants, but the structure is identical: it defends professional service mistakes and pays judgments or settlements. Carriers rate by license type and specialty. If you want us to walk through your specific practice and read the policy language, our Greenville team does that before you bind.

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