Social Workers: Insurance—To Carry Or Not?

Social workers are not required to carry insurance, but it is highly recommended. Social workers deal with difficult issues and clients, and while lawsuits are rare, they can and do happen. Carrying insurance can protect social workers from financial and professional ruin in the event of a lawsuit. Additionally, social workers may be required to appear in court or answer questions during lawsuits or criminal matters, which can result in missed work and unexpected costs. While some social workers may be covered by their agency's insurance, this may not always be sufficient, as the agency's interests may differ from those of the individual social worker. Furthermore, certain agencies and employers require their social workers to carry a certain amount of liability insurance. Ultimately, the decision to carry insurance depends on a social worker's aversion to risk, but it can provide peace of mind and protection in the event of unforeseen circumstances.

Malpractice insurance

There are two categories of malpractice insurance for social workers: occurrence coverage and claims-made coverage. Occurrence coverage protects against complaints and lawsuits as long as the policy is in force when the complaint or lawsuit is filed. This type of coverage is more comprehensive and covers the social worker even after the policy is no longer in effect, but it is usually more expensive than claims-made coverage. Claims-made coverage, on the other hand, only protects against complaints and lawsuits when two conditions are met: the policy is in force when a complaint is filed, and the policy or a renewal of the policy is still in force when the claim is made. Claims-made coverage is less expensive but less comprehensive.

When considering malpractice insurance, social workers should think about their level of risk aversion and whether they have alternative coverage through their employer. While it is not mandatory, malpractice insurance can provide peace of mind and protect social workers' assets, licenses, and reputations.

CM&F, one of the longest-standing professional liability insurance providers, offers comprehensive, portable, and flexible clinical social worker professional liability insurance policies, including coverage for services outlined within the scope of practice according to relevant state laws. Their policies include benefits such as coverage options up to $2 million per claim, license defense coverage, and HIPAA defense coverage.

General liability insurance

Social workers are devoted to providing the best care for their clients and patients. However, they deal with difficult issues and clients, which may lead to mistakes and subsequent lawsuits. While professional liability insurance is not mandatory for social workers, it is advisable for those who want to be cautious. This is especially true if your employer's insurance policy does not cover you adequately, as agency coverage is primarily intended to protect the agency itself.

• Personal injury: If a client or their family member gets injured on your premises, general liability insurance will cover third-party claims for personal injury and related medical costs.
• Bodily injury: If a client falls or sustains an injury due to an accident in your office, general liability insurance will protect you from third-party claims and related medical expenses.
• Slander: In the event a client sues you for slander due to disparaging remarks about them, general liability insurance will provide coverage for such third-party claims.
• Slip-and-fall accidents: General liability insurance will cover you if a client slips and falls, sustaining an injury, on your premises.
• Libel lawsuits: This type of insurance also provides protection in the event of libel and slander lawsuits.

Business owner's policy

A Business Owners Policy (BOP) is a package policy that combines property and liability coverage into a single package. It is a popular choice for small and medium-sized businesses, including restaurants, wholesalers, retail stores, and contractors. BOP insurance is ideal for businesses that own or rent workspace and want to protect their investments.

The liability coverage provided by a BOP is the same as that of a standard general liability policy, including property damage, product-related claims, and customer injury. BOPs also include property coverage for commercial buildings and other personal property owned and used by the company, protecting against fire damage, hail damage, theft, and vandalism. Additionally, it can cover certain claims involving loss of business income, inventory spoilage, and more.

The cost of a BOP policy will depend on various factors, including the business's characteristics, coverage needs, type of profession, number of employees, and claims history. The national median monthly cost of a BOP policy in 2023 was $63 for new customers, while the average price was $106 per month.

BOPs can be customized to meet the specific needs of a business. For example, endorsements can be added to increase coverage for specific risks, such as damage from natural disasters like earthquakes. Businesses can also add coverage for cyber liability, food contamination, tools and equipment, and more.

While BOPs provide comprehensive coverage for small and medium-sized businesses, it is important to note that they do not cover employees. A separate workers' compensation policy is required to protect employees in the event of accidental injuries at the workplace.

Cyber insurance

First-party cyber coverage protects an organisation's data, including employee and customer information. This type of coverage typically includes the costs of legal counsel, recovery and replacement of lost or stolen data, customer notification, lost income due to business interruption, crisis management, cyber extortion and fraud, and forensic services to investigate the breach.

Third-party cyber coverage, on the other hand, protects the organisation from liability if a third party is affected by the breach. This coverage includes payments to consumers, claims and settlement expenses, losses related to defamation, copyright or trademark infringement, and litigation costs.

It's important to note that cyber insurance should not be considered a replacement for effective cyber risk management. Businesses should have robust security processes and technologies in place to complement their cyber insurance policy. Additionally, pricing for cyber insurance will depend on the company's revenue and industry.

When choosing a cyber insurance policy, it's crucial to carefully review the details to ensure that the policy covers all the necessary areas, including protection against known and emerging cyber threats.

Social workers are exposed to the risk of lawsuits, especially when dealing with difficult clients and sensitive issues. While it is not a mandatory requirement for social workers to carry insurance, it is highly recommended as it provides protection against financial and professional ruin. Social workers employed by agencies might be covered to some extent by their employer's insurance policy, but it is still advisable for them to have their own coverage to ensure their individual interests are protected.

Workers' compensation insurance

Workers' compensation benefits may include partial wage replacement for the period during which the employee cannot work, reimbursement for healthcare services and occupational therapy, and coverage of medical expenses related to injuries incurred as a direct result of employment. In the case of a fatality, the worker's dependents may receive survivor benefits.

By accepting workers' compensation benefits, the employee typically waives their right to sue their employer for damages. This "compensation bargain" protects both workers and employers. Workers give up further recourse in exchange for guaranteed compensation, while employers consent to a degree of liability and avoid the potentially greater cost of a negligence lawsuit.

Most workers' compensation programs are paid for by private insurers, with premiums paid by individual employers. The cost of workers' compensation insurance varies by state and the level of risk associated with the job. Generally, only salaried employees are eligible for workers' compensation, with contractors and freelancers rarely covered.

Frequently asked questions