Practice is Your Business — Insurance Protects Your Business

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: Plan Your Work and Work Your Plan

As a business, you should think strategically each year because your goals will change over time, and so must your strategy and tactics. Numerous books and articles provide practical pointers on strategy and tactics. An excellent reference tool is The Pocket Mentor: Thinking Strategically by the Harvard Business Press (2010, ISBN 978-1-4221-2971-5). Here is a brief overview of strategic and tactical steps:

Strategically

1. See the big picture.
   Access the external environment you operate in and how it is evolving.
2. Set the strategic objectives.
   Identify what you want to achieve this year and the following two years.

Tactically

1. Identify relationships, patterns, and trends.
   Evaluate your practice’s touchpoints with stakeholders, intermediaries, clients, and the external environment. For example, consider opportunities like participating in interstate therapy through the Compact, which has insurance and licensing implications. Another example is deciding whether to specialize in specific client types (e.g., minors, elderly, disabled) or work with a diverse population.
2. Get creative.
   Visualize new therapy forms, utilize new tools, and challenge your assumptions. Think outside the box and explore new paradigms. Sequential problem-solving can break down when initial assumptions are faulty. For instance, instead of asking who robbed the bank, ask why they robbed it.
3. Analyze Information.
   Prioritize critical data for decision-making and utilize therapy documentation tools.
4. Prioritize actions.
   Focus on goal-driven tactics, and avoid letting multiple demands dilute your progress.
5. Make tradeoffs.
   Balance your decisions by understanding their potential outcomes—both positive and negative. For example, consider the mix of practice specialties, managing staff, and delivering therapy yourself.

Pro Tip: Insurance helps shift your business or practice risks to a carrier

Each year, you should:

• Review your policies: Consider deductibles, exclusions, lower limits per occurrence, policy fees, prior acts coverage if you switch carriers, and premium rate changes.
• Ask yourself critical questions.

• What is a personal insurance coverage assessment, and what actions should I take?
• Will I change my practice methods, add employees, or work in new treatment locations (in-state or out-of-state)?

Conduct an insurance review to assess your risk exposures. Review the following: Professional Liability, General Liability, Cyber Liability, Auto & Home Insurance, Health & Accident Insurance, and Life Insurance. These policies ensure critical security for practice.

Social workers often adopt new modalities, work in different (physical or digital), moonlight, or hire additional staff. Here are key questions to evaluate your liability insurance for the upcoming year:

1. Am I employing contractors, staff, or interns?
   Claims involving contractor negligence can expose employers to liability. Does your Professional Liability policy cover this risk? What are the sub-limit and deductible?
2. Will I deliver new services or work in multiple states?
   Some policies exclude coverage for specific modalities, such as divorce-related therapy.
3. Am I working offsite?
   Typical venues include fitness centers, assisted living facilities, conference rooms, and public spaces.
4. What are the risks of a home office?
   Consider client visits, data security, and whether homeowner policies adequately cover business activities.
5. How am I managing client records?
   Third-party providers for digital storage or telecommunication introduce liability risks under HIPAA HITECH (45 CFR Part 160).
6. What are my policy limits and exclusions?
   Premiums have surged, particularly in medical malpractice. Be aware of your deductibles, exclusions, and rate increases.
7. Do I issue or sign waivers?
   Waivers transfer risk, often leaving you responsible for liabilities. Ensure your insurance covers such scenarios.

A Note on Waivers

Waivers shift responsibility to you, often at the request of an employer or venue. For example, fitness centers may require waivers for physical therapy-related risks. Your Professional Liability policy ensures you are protected regardless of waivers.

State laws may limit the enforceability of waivers, especially those involving minors or seniors. Consider the activity, sponsor, and staff qualifications when requiring clients to sign waivers.

The Big Takeaway

Think strategically and tactically about your practice. Protect it with comprehensive insurance coverage tailored to your needs. Call Preferra to speak with our licensed agents for a free risk assessment and insurance consultation.