Professional Liability Insurance:
What Every Social Worker Needs to Know

Professional liability insurance helps protect social workers by providing legal representation and coverage for claims, even those that are fraudulent. With the right coverage, social workers gain the security and peace of mind needed to focus on serving clients.

What Does Professional Liability Insurance Cover?

Preferra offers three types of liability insurance: Professional liability, General liability and Cyber liability coverage.

Professional Liability Insurance

Professional liability insurance, also known as malpractice insurance or errors and omissions (E&O) insurance, helps protect you from claims related to your professional services.

• Example: A client sues you, claiming that your services caused them emotional distress. The licensing board then investigates you and your practice.
• What professional liability insurance covers: Legal representation, court costs, settlements, consultations and other costs associated with mediations.

General Liability Insurance

General liability insurance protects you from claims of bodily injury or property damage that are unrelated to your professional services.

• Example: A client trips in your office or home, breaks their arm and then sues you over medical bills.
• What general liability insurance covers: Legal representation, court expenses, medical costs, settlements and property damage coverage.

Cyber Liability Insurance

Cyber liability insurance protects you against risks related to safeguarding client records and data. Social workers often store sensitive client information on their computers and mobile devices, leaving client information vulnerable to data breaches.

• Example: Someone steals your laptop, and they expose sensitive client information. You then face a lawsuit and thousands of dollars in fines.
• What cyber liability insurance covers: Legal representation, fines and penalties, settlements and protection against loss of digital records.

Without coverage, allegations and the out-of-pocket costs to defend against them can be incredibly expensive, much like an emergency room visit or a doctor’s appointment without health insurance.

Common Misconceptions About Professional Liability Insurance

“I don’t need coverage.”
One of the biggest misconceptions about professional liability insurance is that it’s optional. In reality, it’s as important as home and auto insurance. Imagine if a hurricane or earthquake destroys part of your home, or a distracted driver rear-ends your car. Insurance provides peace of mind and ensures you won’t be left paying for repairs out of pocket.

“Professional liability insurance is too expensive.”
Coverage is much more affordable than social workers think. The good news is that professional liability insurance costs less than $55 for a full year of coverage – a small price compared to what you could pay for out-of-pocket legal representation.

“I’m not going to get sued.”
It’s easy for social workers to think they’ll never face a lawsuit. Yet clients can sue out of anger, a misunderstanding or ulterior motives, even if you’ve followed protocols and have a clean record. Liability insurance helps cover court-ordered settlements and offers guidance during licensing board investigations or mediations, ensuring you never have to go through these challenges on your own.

Common Questions About Professional Liability Insurance

“Do social workers really need liability insurance?”
While the law does not require social workers to have professional liability insurance, it’s strongly recommended. Without it, you’re personally responsible for all legal fees, defense costs and unexpected settlements that arise. Having coverage gives you the financial and legal protection to safeguard your career and your future.

“What is the difference between occurrence-based and claims-made policies?”
Occurrence-based policies cover incidents that happen while the policy is active, even if a client files a claim years later. Meanwhile, claims-made policies only cover claims filed during the policy period. Most social workers prefer occurrence-based policies because they provide continuous protection, even after changing jobs or retiring.

“What are the benefits of having professional liability insurance?”
Besides legal representation and covering court and settlement costs, social workers have free access to risk management support. For instance, Preferra offers:

• A dedicated hotline with access to legal consultations. If you received a subpoena or a threat from the state board, you’ll be worried and want answers to your questions right away. The hotline has live agents available to answer all your questions and concerns.
• A board of directors with social work backgrounds to oversee claims. Social workers representing social workers ensure that professionals who truly understand the risks and nuances of the field manage your case, licensure, and reputation.

Takeaways

Having professional liability insurance is a safety net that gives you the security and confidence to focus on clients, without the worry of unexpected claims, lawsuits, or financial burdens.

For more information about Preferra professional liability insurance, click here. Or to enroll in professional liability insurance, click here.