Understanding Your Liability Policy:
What's Covered and What Isn't

As a social worker, fully understanding your liability insurance – what’s covered and what isn’t – is critical to protecting you and your practice. The last thing you want is to face a licensing board complaint or lawsuit, only to discover that the situation falls outside the scope of your policy. Taking the time to review and understand your coverage now can save you time, stress and money later, and give you peace of mind knowing you’re protected.

What are common situations that a standard liability policy would cover?

Professional liability insurance protects you from situations that arise directly from the professional services you provide. Examples include issues related to:

• Counseling
• Therapy
• Case Management
• Client Advocacy
• Assessment and Evaluations

Licensing Board Complaints and Lawsuits

It’s easy to think that clients won’t file a complaint or lawsuit against you because you followed best practices. Unfortunately, that’s not always the case. Clients can file complaints and lawsuits for a wide range of reasons.

For instance, a client can file a complaint or lawsuit against you if they:

• Are dissatisfied with your services
• Believe you caused them emotional harm
• Were injured during an office visit
• Disagree with court results, such as a custody battle
• Feel that you breached their confidentiality

Without proper coverage, even a basic complaint can become a heavy financial burden. Professional liability insurance helps guide you through the legal process and protects you from the financial strain of defending yourself against these claims. It covers attorney fees, and depending on the type of claim, it may also cover court costs, settlements, and judgments.

Depositions and Requests for Records

Professional liability insurance will also protect you from legal proceedings that aren’t directly against you. For instance, if you receive a subpoena or deposition asking you to testify about a former client or provide case notes, professional liability insurance will guide you through that process and advise you on how to respond without violating confidentiality laws or ethical standards. If attorney or court fees arise, your insurance can also help cover these costs.

What doesn’t liability insurance cover?

One of the most common misconceptions among social workers is that professional liability insurance automatically covers every work-related incident. But that isn’t the case.

Your policy will not cover:

• Former employer-related complaints – that’s an employment-related issue and falls outside the scope of professional liability coverage.
• Discrimination or harassment claims – that’s also an employment-related issue and is typically covered under employment practices liability insurance.
• Billing disputes, including payment and reimbursement disagreements, are business or administrative matters.
• Intentional illegal acts or criminal misconduct – liability insurance only covers unintentional errors, omissions, and misunderstandings.
• Bodily injury or property damage – some policies, like general liability insurance, cover physical injuries or property damage, but not professional liability insurance.

If you’re unsure whether your policy will cover a specific situation, carefully review your policy or contact your professional liability insurance carrier and request a coverage review. An experienced representative who understands the complexities of your field can clarify the scope of your policy and help you best explore additional coverage options to meet your individual needs.

Takeaways

Professional liability insurance only covers claims, licensing board complaints, and lawsuits that stem directly from your professional services. When in doubt, consult Preferra Insurance or contact your insurance carrier for guidance

Professional liability insurance exists to help you keep a safe practice. It’s a safety net that protects your professional reputation and ensures you don’t have to face claims, lawsuits, and licensing board complaints alone.