Why Social Workers Need
Personal Liability Insurance

As a social worker, you dedicate your career to supporting and protecting others. But in doing so, it’s easy to overlook who is protecting you. Many assume working at an agency means being fully covered by your employer’s insurance. In reality, no agency policy provides complete coverage. Relying solely on your employer’s insurance can leave your finances, career and license vulnerable.

What’s the Difference Between My Employer’s Insurance and Personal Insurance?

Employer-Provided Insurance

Your employer’s coverage is designed to protect the organization first, not you. While it may provide individual protection in specific circumstances, that coverage is divided among multiple employees, reducing the personal protection you actually receive. Your employer also controls legal defense and settlement decisions, sometimes prioritizing their interests over yours.

Example: You work at a nonprofit organization, and a client sues you for malpractice. Your employer intervenes – selecting the attorney and deciding whether to settle – but only to protect the organization. You have little say in the process, putting you and your practice at risk.

Personal Liability Insurance

Personal liability insurance gives you full ownership and control over your policy. Unlike employer-provided insurance, you, the policyholder, decide on your coverage limits and deductibles.

Personal liability insurance also protects you outside of professional working hours, so if you volunteer or do freelance work, you still have full coverage.

What Does Personal Liability Insurance Cover?

Personal liability insurance covers:

• Legal representation
• Court costs
• Settlements
• Consultations and medidation expenses
• Licensing board defense

Do Only Social Workers in Private Practice Need Insurance?

No. While social workers in private practice especially need their own insurance, all social workers benefit from personal liability coverage. Even if you follow good practices, unexpected situations can arise and having insurance and legal defense ready to protect you and cover any court-ordered fees or settlements is an essential safety net.

What Happens if I Change Jobs? Will I Still Be Protected From Past Claims?

Most employers only cover claims filed while you’re actively employed with them.

Example: A client files a claim against you three weeks after you leave a job. With only employer-provided insurance, you would no longer be protected and would have to cover legal expenses and court fees on your own.

But if you have personal liability insurance, even if you change jobs or start a private practice, your coverage continues without interruption.

What Are the Risks of Not Having Personal Insurance?

If you don’t have proper representation, you will put your practice, credentials and reputation at risk. And if you can’t practice, your financial security is directly affected. Personal liability insurance helps reduce those risks.

How Much Does Personal Coverage Cost?

It’s more affordable than you think. For social workers’ first full year of coverage, it can be less than $55 – just a fraction of what a legal consultation without insurance would cost.

Takeaways

The full scope of employers’ policies isn’t always clear. You may be left with a false sense of security, only to find out your coverage doesn’t apply during a stressful and costly situation. To protect yourself, every social worker, whether working at an agency, in private practice, or in any other setting, needs personal liability insurance. It’s affordable and safeguards your career, professional reputation, and finances when the unexpected occurs.