A Look at the Insurance Outlook for 2025
First, we want to acknowledge that the social work profession is genuinely noble and grounded in service, integrity, and clinical expertise. Although it can be stressful and even dangerous, the nation is grateful for what you do, and so are we. Thank you!
Pro-Tip: Ask what to expect in coverage, sub-limits, exclusions, premiums, and risks.
A 2024 study by Chubb (16th Annual Liability Limit Benchmark & Large Loss Profile by Industry Sector) found that the coverage gap is widening due to nuclear verdicts, which have soared to $18.3 billion—a 273% increase since 2020. The projected verdict growth increases by 13.2% annually through 2028, driven primarily by healthcare and life sciences-related lawsuits. Nuclear verdicts are awards exceeding $10 million.
A societal trend toward accountability drives jury verdicts that outpace inflation. This phenomenon is often referred to as a “highly litigious society.” According to B.F. Saul Insurance (The State of the U.S. Business Insurance Market—Trends and Insights, January 2025), while inflation is a factor, punishment, and social justice concerns significantly contribute to these high awards. Data privacy breaches, including HIPAA violations, also fuel lawsuits, with negligence being a key driver.
Unfortunately, policyholders are bearing the brunt of these trends. Insurance carriers are increasing premiums, raising deductibles, introducing exclusions, and lowering sub-limits, while agents charge additional policy and administrative fees, according to B.F. Saul Insurance, the challenging market of significant rate hikes has persisted, with rates rising 15% over the past 12 months, though the market has begun to stabilize.
PRO TIP: Preferra has never implemented a rate hike on its insurance products and does not impose deductibles.
Many policyholders are reducing their policy limits to cut costs and manage rising premiums. For example, healthcare practitioners have reduced their coverage limits by 31% to save on premiums, which exposes them to increased vulnerability.
Recognizing the need for better coverage options, Preferra introduced a General Liability policy enhancement in 2024 that doubled the coverage limit to $2,000,000 for less than $75 in additional annual premiums. Unlike other carriers, Preferra’s General Liability policy covers fire perils up to the $1,000,000 limit—approximately three times higher than competitors’ fire limits. Additionally, Preferra maintains a “no deductibles” philosophy across all its policies, including Professional Liability, General Liability, and Cyber Liability coverage.
On the demand side, premium growth in the P&C market, including professional and general liability lines, is expected to slow, with a forecasted 5% increase in 2025 and 4% in 2026 compared to a 10% rise in 2024 (Reinsurance U.S. P&C Insurance Sector Set for Stable ROE in 2025—Swiss RE, January 2025). Preferra has remained steadfast, never increasing product rates, including its claims-made professional liability lines.
Mergers and acquisitions in the healthcare sector remain at an all-time high, with 31 hospital mergers announced in the first half of 2024 alone (The State of the Insurance Market: What’s in Store for 2025, Risk Strategies, October 2024). As large hospital systems dominate, higher professional liability coverage levels are becoming standard for social worker contractors. A $1 million per occurrence coverage is now often considered inadequate, with requirements shifting toward $2 million. Preferra offers professional liability coverage with aggregate limits of up to $5 million, available in claims-made and occurrence schedules.
Preferra’s General Liability policy provides $1 million and $2 million per occurrence coverage, covering all modalities and locations without office size limits or restrictions on the number of offices, even across state lines in all 50 states. Unlike competitors, Preferra’s fire peril coverage extends to $2,000,000 per claim, far exceeding the $350,000 cap standard among other carriers. Liability insurance for business-related incidents, such as injuries to a business invitee in a home office, requires commercial general liability coverage. Preferra’s General Liability policy is comprehensive, deductible-free, and priced at about half of what competitors charge, with no additional policy or administrative fees.
Preferra’s Cyber Liability plans also protect insureds against all perils listed under HIPAA HITECH and more, offering the lowest premiums in the market. Preferra’s Cyber Liability plans have no deductibles, policy fees, or administrative fees like its other policies.
Feel free to call Preferra to speak with our licensed insurance agents at no cost to assess your liability risks and coverage needs.
